MTT55530 - Administration: Compliance: Appeals: Postponement of tax during appeal
Source: gov.uk (2025-08-05)


In general, an appeal does not postpone any liability to pay MTT due.

However, a liability may be postponed if:
- an application is made to HMRC and it is determined that there are reasonable grounds to believe that the person is overcharged,
- a tribunal directs it, or
- HMRC and the filing member agree to a postponement.
The period of postponement will end on the date that the appeal is determined.

This is set out in paragraphs 63 and 67(2), schedule 14 to Finance (No.2) Act 2023.

For general information on postponements of tax during an appeal, see the Appeals, Reviews and Tribunals Guidance (ARTG) Manual.

Applications to postpone payment

The filing member can apply to HMRC to request postponement of payment if they have reason to believe that:
- a person has been overcharged MTT, or
- the amount of tax previously postponed is incorrect.
The application must state the amount believed to be overcharged and the grounds for that belief.

The application must be made within 30 days of the specified date (see MTT55520 (https://www.gov.uk/hmrc-internal-manuals/multinational-top-up-tax-and-domestic-top-up-tax/mtt55520)). It may be made more than 30 days after, if there is a change in the circumstances of the case, as a result of which the filing member has grounds for making a request, by direction of a Tribunal, or by HMRC agreement.

HMRC will then determine the amount of tax, if any, for which payment should be postponed. This amount must be the amount by which it is reasonable to believe that the person has been overcharged.

If the appellant does not agree with the determination, it may refer the application to the Tribunal.

Agreements to postpone

HMRC and the filing member may agree that payment should be postponed pending the determination of the appeal.

Any such agreement must be made in writing. It may be made with a person acting on behalf of the appellant.

The agreement should take effect in the same way that it would do if it were a direction from a Tribunal. An agreement may specify that is to be treated in the same way as a settlement agreement (see MTT55540 (https://www.gov.uk/hmrc-internal-manuals/multinational-top-up-tax-and-domestic-top-up-tax/mtt55540)).

Agreements may modify an existing determination made by HMRC following an application to postpone payment.

Any agreement may subsequently be modified by a determination by HMRC following an application to postpone payment, or by Tribunal direction.

Appeals against penalties

A person may appeal against a penalty that is payable by that person.

Penalties relating to the information return (MTT55430 (https://www.gov.uk/hmrc-internal-manuals/multinational-top-up-tax-and-domestic-top-up-tax/mtt55430)), penalties relating to the self-assessment return (MTT55440 (https://www.gov.uk/hmrc-internal-manuals/multinational-top-up-tax-and-domestic-top-up-tax/mtt55440)), and penalties relating to record-keeping (MTT55460 (https://www.gov.uk/hmrc-internal-manuals/multinational-top-up-tax-and-domestic-top-up-tax/mtt55460)) are automatically postponed once appealed.

This means that no action can be taken to collect a penalty while it remains under appeal. An appeal against a penalty must be made in writing by the person that is required to pay the penalty, this will usually be the filing member.