RSTP6013 - Settlement Agreement

RSTPA guidance on settlement agreements which can be entered into before the conclusion of a review or mediation or before an appeal is determined.

You can enter into an agreement with us (a ‘settlement agreement’):

  • in relation to a review, before the review is concluded (see RSTP6006);
  • in relation to mediation, as the conclusion of mediation (see RSTP6007); or
  • in relation to an appeal, before the appeal is determined (see RSTP6008).

A settlement agreement can uphold, vary or cancel our original decision (the ‘matter in question’) which is the subject of the review, mediation or appeal.

Effect of a settlement agreement

Subject to the rules in the following paragraph, the effect or consequences of a settlement agreement are the same as if the tribunal had determined an appeal in relation to the matter in question by upholding, varying or cancelling the decision (whichever applies), but a settlement agreement is not treated as a decision of the tribunal for the purposes of onward appeal from the First-tier Tax Tribunal for Scotland to the Upper Tax Tribunal for Scotland (see RSTP6010) or from the Upper Tax Tribunal for Scotland to the Court of Session (see RSTP6011).

The above paragraph does not apply:

  • where you withdraw from the settlement agreement by notifying us within 30 days from the day when you and we entered into the settlement agreement; or
  • where the settlement agreement is not in writing, unless the fact that an agreement was entered into, and the terms agreed, are confirmed by a notice in writing from either you to us or us to you.

If the settlement agreement is not in writing, the time that the confirmation notice regarding the agreement was given is to be treated as the time the agreement was entered into between you and us.

All references to ‘you’ in the above include a person acting on behalf of the appellant.

RSTPA 2014 section 246


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