Income and Corporation Taxes Act 1988

Administration U.K.

179 Recovery of tax from scheme employer. U.K.

M1 (1) This section applies where—

(a) payments of profit-related pay are made to an employee in accordance with a registered scheme; and

(b) in consequence of the relief given by this Chapter in respect of registered schemes, less income tax is deducted from the payments in accordance with section 203 than would have been deducted if the scheme had not been registered; and

(c) the registration of the scheme is subsequently cancelled with effect from a time before that relevant for the purposes of the relief.

(2) Where this section applies, an amount equal to the shortfall in the deductions made in accordance with section 203 shall be payable by the scheme employer to the Board; and regulations under that section may include provision as to the collection and recovery of any such amount.

[F1 (3) Where—

(a) the scheme employer has died, but

(b) his personal representatives have not been substituted for him as the scheme employer by virtue of section 177A,

the reference in subsection (2) above to the scheme employer shall be construed as a reference to the personal representatives.

(4) Where—

(a) a payment to which this section applies was made by a person other than the scheme employer, and

(b) the scheme employer is not resident in the United Kingdom,

then in relation to that payment the reference in subsection (2) above to the scheme employer shall include a reference to the person by whom the payment was made.]

Textual Amendments

F1 1989 s.61and Sch.4 para.5.

Marginal Citations

M1 Source—1987 (No.2) s.11

180 Annual returns etc. U.K.

M2 (1) After every profit period of a registered scheme, the scheme employer shall, within the period allowed by subsection (2) below, send to the Board—

(a) a return in such form and containing such information as the Board may prescribe; and

(b) a report by an independent accountant in such form and containing such information as the Board may prescribe and stating that in his opinion the terms of the scheme have been complied with in respect of the profit period.

(2) Subject to subsection (3) below, the period allowed for complying with subsection (1) above is—

(a) seven months from the end of the profit period if the employment unit to which the scheme relates is an undertaking or part of an undertaking of a public company; and

(b) ten months from the end of the profit period in any other case.

(3) If before the end of the period allowed by subsection (2) above the scheme employer gives the Board notice that an extension of three months has been allowed under [F2 section 244(3)] of the M3 Companies Act 1985, or under Article 250(3) of the M4 Companies (Northern Ireland) Order 1986, in relation to a financial year of the employer which corresponds with the profit period in question, then the period allowed by subsection (2) above shall be correspondingly extended.

(4) In subsection (2)(a) above, “public company” has the meaning given by section 1(3) of the Companies Act 1985 or Article 12(3) of the Companies (Northern Ireland) Order 1986.

[F3 (5) Where—

(a) the scheme employer has died, but

(b) his personal representatives have not been substituted for him as the scheme employer by virtue of section 177A,

the reference in subsection (1) above to the scheme employer shall be construed as a reference to the personal representatives.]

Textual Amendments

F2 Companies Act 1989 (c.40) s.23and Sch.10 para.38(2)in force on 1April 1990by virtue of S.I. 1990 No.355 (c.13), art.3 (not reproduced).Previously

“section 242(3)”.

F3 1989 s.61and Sch.4 para.6.

Marginal Citations

M2 Source—1987 (No.2) s.12

M3 1985 c. 6.

M4 S.I. 1986/1032 (N.I. 6).

181 Other information. U.K.

M5 (1) The Board may by notice require any person to give them, within a period of 30 days or such longer period as may be specified in the notice, any information which is so specified and which—

(a) that person has or can reasonably be required to obtain; and

(b) the Board consider they need to have in order to perform their functions under this Chapter.

(2) Without prejudice to the generality of subsection (1)(b) above, the Board may in particular require a person under subsection (1) to give them—

(a) information to enable them to determine whether the registration of a scheme should be cancelled;

(b) information to enable them to determine the liability to tax of any person who is or has been an employee to whom a registered scheme relates or who pays or has paid emoluments to such an employee;

(c) information about the administration of a profit-related pay scheme which is or has been a registered scheme;

(d) information about any change of person paying emoluments to employees to whom a registered scheme relates.

(3) The scheme employer of a registered scheme shall by notice inform the Board without delay if he becomes aware of anything that is or may be a ground for cancellation of the registration of the scheme.

[F4 (4) Where the scheme employer has died, his personal representatives shall inform the Board of his death by notice given before the end of the period of one month beginning with the date of the grant of probate or letters of administration or, in Scotland, confirmation of executors.]

Textual Amendments

F4 1989 s.61and Sch.4 paras.7, 8(2), 8(3).

Marginal Citations

M5 Source—1987 (No.2) s.13

182 Appeals. U.K.

M6 (1) An appeal to the Special Commissioners may be made by a scheme employer—

(a) against a refusal by the Board under section 176(2) or (4) of an application for registration of the scheme;

(b) against a refusal by the Board of an application under section 177;

[F5 (bb) against a refusal by the Board of an application under section 177B(3).]

(c) against the cancellation by the Board of the registration of the scheme.

[F5 (1A) An appeal to the Special Commissioners may be made by the personal representatives of a scheme employer against a refusal by the Board of an application under section 177A.]

(2) An appeal under this section shall be made by notice given to the Board within 30 days of the day on which the [F6 appellant] was notified of the refusal or, as the case may be, the cancellation.

Textual Amendments

F5 1989 s.61and Sch.4 paras.7, 8(2), 8(3).

F6 1989 s.61and Sch.4 para.8(4).Previously

“scheme employer”.

Marginal Citations

M6 Source—1987 (No.2) s.15