Finance Act 2021

Conduct notices: duration U.K.

25 U.K. In section 241 (duration of conduct notice)—

(a) in subsection (2)—

(i) in paragraph (a), for “the period of two years” substitute “ the relevant period ”;

(ii) omit the “or” at the end of paragraph (a);

(iii) omit paragraph (b);

(b) after subsection (2) insert—

“(2A) But where a new conduct notice was given under section 240(4) that has a commencement date that is later than 12 months before the end of the relevant period in relation to the original notice, that new notice ceases to have effect at the end of the relevant period in relation to the original notice.”;

(c) after subsection (4) insert—

“(4A) For the purposes of subsection (2)(a), the relevant period in relation to a conduct notice is calculated in accordance with this table—

If the authorised officer is aware that the person to whom the notice is given meets	the relevant period is such period as may be notified in accordance with subsection (4B) or (4C) up to
1 ordinary condition	2 years
2 ordinary conditions	4 years
3 or more ordinary conditions	5 years
1 significant condition	3 years
1 significant condition and 1 or more other significant or ordinary conditions	5 years

Subsection (4E) makes provision for the relevant period to be extended in certain circumstances.

(4B) When an authorised officer gives a person a conduct notice the officer must notify the person of the relevant period calculated by reference to the conditions which the officer is aware the person has met at that time.

(4C) If an authorised officer becomes aware that a person in relation to whom a conduct notice has effect has met one or more conditions which were not taken into account when the relevant period was calculated at the time the notice was given, the officer may give the person a notice—

(a) stating that the relevant period has been recalculated to take account of the additional conditions, and

(b) notifying the person of —

(i) the new relevant period as recalculated in accordance with the table in subsection (4A), and

(ii) the new date at the end of which the conduct notice will cease to have effect.

(4D) For the purposes of the table in subsection (4A)—

(a) a condition is significant if it is—

(i) a threshold condition listed in section 237(9), or

(ii) a condition in section 237A(11), (12) or (13) in respect of which an authorised officer makes a determination (whether in accordance with section 237A(1) or (2) or for the purposes of this paragraph) that meeting the condition should be regarded as significant in view of the purposes of this Part, and

(b) a condition is ordinary if it is a threshold condition not listed in section 237(9).

(4E) In calculating the relevant period for the purposes of subsection (2)(a) no account is to be taken of any day on all or part of which the effect of the conduct notice in question has been suspended by an authorised officer.

(4F) Where an authorised officer suspends the effect of a conduct notice, the officer must, as soon as practicable, notify the person to whom the notice was given of the suspension.

(4G) Where an authorised officer determines that the effect of a conduct notice should be resumed, the officer must, as soon as practicable, notify the person to whom the notice was given—

(a) that its effect has been resumed,

(b) of the number of days that are not to be taken into account in calculating the relevant period in accordance with subsection (4E), and

(c) of the new date at the end of which the relevant period is expected to end.

(4H) Where a conduct notice has been given to a person and the person is subsequently given a notice under paragraph 1 of Schedule 36 of FA 2008 as it has effect as a result of section 272A (power to obtain information and documents), in calculating the relevant period for the purposes of subsection (2)(a) no account is to be taken of any day on which the person has not complied with that notice.

(4I) For the purposes of subsection (4H), a person has not complied with a notice given under that paragraph on each day—

(a) beginning with the day after the last day on which the person could have complied with the notice, and

(b) ending with the day before the day (or, if more than one, the last day) on which the person provides the information or produces the documents required by the notice.

(4J) As soon as reasonably practicable after the day mentioned in subsection (4I)(b), an authorised officer must give the person to whom the conduct notice was given notice of—

(a) the number of days that are not to be taken into account in calculating the relevant period, and

(b) of the new date at the end of which the relevant period is expected to end.”