If you appeal an HMRC decision, HMRC will usually offer a statutory review of its decision. You have 30 days from the offer to accept it or take your appeal to the First tier Tribunal instead. HMRC then normally has 45 days to complete the review, and if it misses that deadline the original decision is treated as upheld, which opens the way to the tribunal.

What is a statutory review?

A statutory review is HMRC’s internal second look at a disputed decision, such as a closure notice amendment, an assessment or a penalty. The rules are in sections 49A to 49I of the Taxes Management Act 1970.

What are the time limits?

  • Appeal first. To challenge a closure notice you must appeal in writing within 30 days of the date it was issued. See HMRC closure notices.
  • Accept or go to tribunal. Under section 49C you have 30 days from HMRC’s offer to accept a review. GOV.UK says “You’ll get 30 days from the date of the offer to either accept the offer of a review or appeal to the tax tribunal”.
  • If you do nothing. If you neither accept the review nor notify the tribunal, HMRC’s view is treated as settled by agreement under section 54, unless the tribunal later gives permission to appeal.
  • HMRC’s deadline. Section 49E(6) gives HMRC 45 days from receiving your acceptance, or another agreed period. If it misses the deadline, its original view is treated as upheld.
  • After the review. GOV.UK says an appeal to the tribunal is usually due within 30 days of the review conclusion letter.

How often do reviews and appeals succeed?

HMRC’s annual report for 2025 to 2026 says it carried out 5,755 statutory reviews of substantive decisions and upheld the original decision in 67% of them. Of 2,989 appeals decided by the tribunal, HMRC’s success rate was 91.4%. Alternative dispute resolution resolved 88.9% of the cases closed through it. Figures and sources are on our HMRC enquiry and investigation statistics page. One reading of those numbers is that a third of reviewed decisions were changed in some way, so a review is often worth requesting.

Should I choose review, tribunal or ADR?

  • Review is free, quick and keeps the tribunal open if it fails.
  • The First tier Tribunal (Tax Chamber) is independent of HMRC and decides on the evidence and the law. It is more formal and slower.
  • Alternative dispute resolution uses a trained HMRC mediator to help both sides reach agreement.

Who pays the professional fees?

Disputes can involve detailed written arguments and, at tribunal, hearings. HMRC does not pay your costs. Tax investigation insurance can pay your accountant’s fees for the enquiry and any appeal that follows, up to the policy limit, subject to the policy terms. Solar Protect cover pays up to £100,000 with no excess. Read how our cover works or get a quote today.

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 7 October 2026. Sources: Taxes Management Act 1970 sections 31A, 49A to 49I and 54; GOV.UK, Disagree with a tax decision or penalty; HMRC Annual Report and Accounts 2025 to 2026. This guide is general information, not personalised tax advice.