Income Tax (Trading and Other Income) Act 2005

[F1 Recovery of tax from person in same control group U.K.

Textual Amendments

F1 Pt. 5 Ch. 2A inserted (with effect in accordance with Sch. 3 para. 7 of the amending Act) by Finance Act 2019 (c. 1), Sch. 3 para. 4 (with Sch. 3 para. 8)

608O Notice requiring payment from person in same control group as taxpayer U.K.

(1) This section applies where—

(a) an amount of income tax has been assessed on a person (“the taxpayer”) for a tax year by virtue of this Chapter, and

(b) the whole or any part of that amount, or of any interest on that amount, is unpaid at the end of the period of 6 months after the relevant date.

(2) A designated officer may give a notice to a relevant person requiring that person, within 30 days of the giving of the notice, to pay any unpaid tax and interest.

(3) The notice must state—

(a) the amount of income tax and interest that remains unpaid,

(b) the date when the income tax first became payable, and

(c) the relevant person's right of appeal.

(4) A notice under this section may not be given more than 3 years and 6 months after the relevant date.

(5) In this section “relevant person” means any person who was in the same control group as the taxpayer at any time in the tax year (see section 608S for the meaning of being in the same “control group”).

(6) In this section “the relevant date” means—

(a) in relation to an amount of income tax determined under section 28C of TMA 1970, the date on which the determination was issued;

(b) in relation to an amount of income tax under a self-assessment in a case where the taxpayer's return under section 8 or 8A of TMA 1970 was delivered after the last day for delivering it in accordance with that section, the date on which the return was delivered;

(c) in any other case, the date the amount mentioned in subsection (1)(a) became due and payable.

(7) A notice may be given anywhere in the world, to any relevant person (whether or not UK resident).

(8) In this section—

• “assessment”: any reference to an amount of income tax that has been assessed on a person includes an amount of income tax that has been determined under section 28C of TMA 1970 in relation to the person;

• “designated officer” means an officer of Revenue and Customs who has been designated by the Commissioners for the purposes of this Chapter.

608P Payment notice: effect U.K.

(1) This section applies where a notice under section 608O is given to a person.

(2) For the purposes of the recovery from the person of any unpaid tax and interest (including interest accruing after the date of the notice), the person is treated as if—

(a) the amount of income tax assessed as mentioned in section 608O(1)(a) had been assessed on the person,

(b) that amount became due and payable when the tax mentioned in section 608O(1)(a) became due and payable, and

(c) any payments made in respect of the amount mentioned in section 608O(1)(a) (or in respect of interest on that amount) had been made in respect of the amount treated as assessed by virtue of paragraph (a) of this subsection (or in respect of interest on that amount).

(3) Nothing in subsection (2) gives the person a right to appeal against the assessment mentioned in section 608O(1)(a) (or against any assessment treated as made by virtue of subsection (2) of this section).

(4) Any appeal by the taxpayer against the assessment mentioned in section 608O(1)(a) does not affect the liabilities arising by virtue of the giving of the notice.

608Q Payment notice: appeals U.K.

(1) This section applies where a notice under section 608O is given to a person.

(2) The person may appeal against the notice, within the period of 30 days beginning with the date on which it is given, on the ground that the person is not a relevant person (as defined by section 608O).

(3) Where an appeal is made, anything required by the notice to be paid is due and payable as if there had been no appeal.

(4) Section 56 of TMA 1970 (payment of tax where further appeal) applies in relation to any further appeal against the notice, but the relevant court or tribunal may, on the application of Her Majesty's Revenue and Customs, direct that section 56(2) does not apply to anything required by the notice to be paid.

(5) A direction may be given if the relevant court or tribunal considers it necessary for the protection of the revenue.

(6) In this section “relevant court or tribunal” has the same meaning as in section 56 of TMA 1970.

608R Payment notice: effect of making payment etc U.K.

(1) This section applies where a notice under section 608O is given to a person.

(2) A person who pays an amount in pursuance of the notice may recover that amount from the taxpayer.

(3) In calculating the person's income, profits or losses for any tax purposes—

(a) a payment in pursuance of the notice is not allowed as a deduction, and

(b) the reimbursement of any such payment is not regarded as a receipt.

(4) Any amount paid by the person in pursuance of the notice is to be taken into account in calculating—

(a) the amount unpaid, and

(b) the amount due by virtue of any other notice under section 608O relating to the amount unpaid.

(5) Similarly, any payment by the taxpayer of any of the amount unpaid is to be taken into account in calculating the amount due by virtue of the notice (or by virtue of any other notice under section 608O relating to the amount unpaid).]