Taxes Management Act 1970
1970 c. 9
An Act to consolidate certain of the enactments relating to income tax, capital gains tax and corporation tax, including certain enactments relating also to other taxes.
General amendments to Tax Acts, Income Tax Acts, and/or Corporation Tax Acts made by legislation after 1.2.1991 are noted against Income and Corporation Taxes Act 1988 (c. 1) but not against each Act
Act applied in part (with modifications) by The Stamp Duty Reserve Tax Regulations 1986 (S.I. 1986/1711), reg. 20, Sch.
Act applied (19.4.1991) for the year of assessment 1988-1989 by S.I. 1991/851, regs. 1, 3(1)
Act extended (with modifications) (28.3.1992) for year of assessment 1989-1990 by S.I. 1992/511, regs. 1,3, Sch. 1
Power to modify Act conferred (6.3.1992) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 209(3), 289 (having effect in relation to tax for the year 1992-93 and subsequent years of assessment, and tax for other chargeable periods beginning on or after 6.4.1992 see s. 289) (with ss. 60, 101(1), 171, 201(3))
Act applied (with modifications) (23.3.1993 with effect for the year of assessment 1990-91 only) by S.I. 1993/415, regs. 1(1), 3(1).
Act applied (27.7.1993) by 1993 c. 34, s. 80(7)
Act: power to modify conferred (27.7.1993 with effect for the year 1992-93 and subsequent years of assessment) by 1993 c. 34, s. 182(2), 184(3)
Act applied (with modifications) (with effect for the year of assessment 1991-92 in accordance with reg. 1(1) of the amending S.I.) by The Lloyds Underwriters (Tax) (1991-92) Regulations 1994 (S.I. 1994/728), reg. 3(1) (with regs. 3(2), 4-7)
Act applied (9.3.1995 with effect in accordance with reg. 1 of the amending S.I.) by The Lloyds Underwriters (Tax) Regulations 1995 (S.I. 1995/351), reg. 4 (with regs. 5-8) (subject to S.I. 1995/352)
Act applied (with modifications) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Lloyds Underwriters (Tax) (1992-93 to 1996-97) Regulations 1995 (S.I. 1995/352), regs. 4-12, 14, 15 (subject to S.I. 1995/351)
Act applied by Income and Corporation Taxes Act 1988 (c. 1), s. 374A(4) (as inserted (with effect in accordance with s. 103(7) and with application in accordance with s. 112(5) of the amending Act) by Finance Act 1995 (c. 4), s. 112(1)(5))
Act applied (1.5.1995) by Finance Act 1995 (c. 4), Sch. 22 para. 12(5) (with Sch. 22 para. 12(6))
PART I ADMINISTRATION
C71 Taxes under care and management of the Board.
C81
Income tax, corporation tax F1. . . and capital gains tax shall be under the care and management of the Commissioners of Inland Revenue (in this Act referred to as “the Board”), and the definition of “inland revenue” in section 39 of the Inland Revenue Regulation Act 1890 shall have effect accordingly .
C92
The Board shall appoint inspectors and collectors of taxes who shall act under the direction of the Board .
F22A
The Board may appoint a person to be an inspector or collector for general purposes or for such specific purposes as the Board think fit.
2B
Where in accordance with the Board’s administrative practices a person is authorised to act as an inspector or collector for specific purposes, he shall be deemed to have been appointed to be an inspector or collector for those purposes.
C103
Any legal proceedings or administrative act relating to any tax begun by one inspector or collector may be continued by another inspector or, as the case may be, another collector; and any inspector or collector may act for any division or other area.
2 General Commissioners
1
For the purpose of exercising such powers relating to appeals and other matters as are conferred on them by the Taxes Acts there shall be “Commissioners for the general purposes of the income tax” (in the Taxes Acts referred to as “General Commissioners”) who shall act for the same separate areas in Great Britain as heretofore F3or for the separate areas in Northern Ireland defined by an order made by the Lord Chancellor (in the Taxes Acts referred to as “divisions”).
2
General Commissioners for divisions in England and Wales F3or Northern Ireland shall be appointed by, and shall hold office during the pleasure of, the Lord Chancellor.
3
4
In Scotland a sheriff shall be ex officio a General Commissioner for any division wholly or partly within his sheriffdom and a salaried sheriff-substitute shall be ex officio a General Commissioner for any division wholly or partly within his district.
F65
The Lord Chancellor or, in Scotland, the Secretary of State shall pay General Commissioners by way of travelling allowance or subsistence allowance sums of such amounts and in such circumstances as he may, with the approval of the Treasury, determine.
6
The Lord Chancellor or, in Scotland, the Secretary of State may by order create a new division or abolish an existing division or alter in any other respect the divisions or their boundaries; and any such order may contain such consequential and transitional provisions as the Lord Chancellor or the Secretary of State, as the case may be, thinks fit and may be revoked or varied by a subsequent order under this subsection.
F7Subject to the preceding provisions of this subsection, the areas of the divisions shall be the same as immediately before the passing of this Act C11.
7
A General Commissioner shall not continue in office after he attains the age of seventy-five years.
8
The validity of any proceedings of General Commissioners shall not be affected by a defect in the appointment of any of them, or by a failure to observe the requirements of the last preceding subsection.
3 Clerk to General Commissioners.
1
The General Commissioners for every division shall appoint a clerk and, if they think it necessary, an assistant clerk, and persons appointed under this subsection shall hold office during the pleasure of the Commissioners and act under their direction.
F82
The Lord Chancellor or, in Scotland, the Secretary of State shall pay a clerk such remuneration in respect of his services as the Lord Chancellor or Secretary of State may, with the approval of the Treasury, determine.
3
F9The Lord Chancellor or, in Scotland, the Secretary of State may, in such cases as he may in his discretion determine, pay to or in respect of any full-time clerk such pension [F10allowance] or gratuity, or make such provision for the payment of pension [F10allowance] or gratuity to or in respect of any full-time clerk, as F11he may, with the approval of the Treasury, determine.
In this subsection “full-time clerk” means a clerk as regards whom F11the Lord Chancellor or Secretary of State is satisfied that he is required to devote substantially the whole of his time to the duties of his office C12.
4
Without prejudice to the power of any General Commissioners to dismiss their clerk or assistant clerk, the Lord Chancellor or, in Scotland, the Secretary of State may, after consulting the General Commissioners for any division, dismiss their clerk or assistant clerk.
5
A clerk or assistant clerk shall not continue in office after he has attained the age of seventy years unless the General Commissioners for whom he acts think it desirable in the public interest and extend his term of office; and the term shall not be extended beyond the age of seventy-five years.
C134F13Special Commissioners.
1
The Lord Chancellor shall, after consultation with the Lord Advocate, appoint such persons as he thinks fit as “Commissioners for the special purposes of the Income Tax Acts” (in the Taxes Acts referred to as “Special Commissioners”) and shall designate one of the Special Commissioners as the Presiding Special Commissioner .
2
No person shall be appointed under subsection (1) above unless—
F12a
he has a 10 year general qualification, within the meaning of section 71 of the Courts and Legal Services Act 1990;
b
he is an advocate or solicitor in Scotland of at least 10 years’ standing; or
c
he is a member of the Bar of Northern Ireland or solicitor of the Supreme Court of Northern Ireland of at least 10 years’ standing
3
If the Presiding Special Commissioner is temporarily absent or unable to act or there is a vacancy in his office, the Lord Chancellor may designate another Special Commissioner to act as deputy Presiding Special Commissioner and the Commissioner so designated shall, when so acting, have all the functions of the Presiding Special Commissioner.
F5043A
A Special Commissioner—
a
may resign his office at any time; and
b
shall vacate his office on the day on which he attains the age of seventy years;
but paragraph (b) above is subject to section 26(4) to (6) of the Judicial Pensions and Retirement Act 1993 (power to authorise continuance in office up to the age of 75).
4
The Lord Chancellor may, if he thinks fit, and after consultation with the Lord Advocate, remove a Special Commissioner from office on the grounds of incapacity or misbehaviour.
5
By virtue of their appointment the Special Commissioners shall have authority to execute such powers, and to perform such duties, as are assigned to them by any enactment.
6
Such sums shall be allowed to Special Commissioners in respect of salary and incidental expenses and such pensions (including allowances and gratuities) shall be paid to, or in respect of, them as the Lord Chancellor may, with the approval of the Treasury, determine.
F5056A
Subsection (6) above, so far as relating to pensions (including allowances and gratuities), shall not have effect in relation to a person to whom Part I of the Judicial Pensions and Retirement Act 1993 applies, except to the extent provided by or under that Act.
7
Officers and staff may be appointed under section 27 of the M1Courts Act 1971 (court staff) for carrying out the administrative work of the Special Commissioners.
4AF13Deputy Special Commissioners.
1
If it appears to the Lord Chancellor expedient to do so in order to facilitate the performance of any functions of the Special Commissioners, he may, after consultation with the Lord Advocate, appoint a person to be a deputy Special Commissioner during such period or on such occasions as the Lord Chancellor thinks fit.
2
A person shall not be qualified for appointment as a deputy Special Commissioner unless he is qualified for appointment as a Special Commissioner F506(and, accordingly, no appointment of a person as a deputy Special Commissioner shall be such as to extend beyond the day on which he attains the age of seventy years, but subject to section 26(4) to (6) of the Judicial Pensions and Retirement Act 1993).
3
A deputy Special Commissioner while acting under this section shall have all the jurisdiction and functions of a Special Commissioner and any reference to a Special Commissioner in the following provisions of this Act or in any other enactment or any instrument made under any enactment (whenever passed or made) shall include a reference to a deputy Special Commissioner.
4
The duty under section 6(1) below shall only apply to a deputy Special Commissioner on his first appointment to that office.
F5075
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6
The Lord Chancellor may pay to any person appointed under this section such remuneration and allowances as he may, with the approval of the Treasury, determine.
5 General and Special Commissioners.
1
No General Commissioner or Special Commissioner shall act as such in relation to any matter in which he has a personal interest, or is interested on behalf of another person, except with the express consent of the parties to the proceedings.
F142
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C14C156 Declarations on taking office.
1
Every person who is appointed to be—
a
a General Commissioner or a Special Commissioner, or
F15b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
a member of the tribunal established under section F16706 of the principal Act (cancellation of tax advantages),
shall make a declaration in the form set out in Part I of Schedule 1 to this Act before another person holding the same office, or before a General Commissioner.
2
Every person who is appointed to be a clerk or assistant clerk to the General Commissioners for any division, or who assists any such clerk, shall make a declaration in the form set out in Part I of Schedule 1 to this Act.
A clerk or assistant clerk shall make the declaration before a General Commissioner for the division, and a person who assists any such clerk shall make the declaration before such a General Commissioner or the clerk.
3
Every person who is appointed to be a member of the Board shall make a declaration in the form set out in Part II of Schedule 1 to this Act before another member of the Board.
4
Every person who is appointed an inspector or collector, or who is appointed by the Board to serve in any other capacity, shall make a declaration in the form set out in Part III of Schedule 1 to this Act before such person as the Board may direct.
5
A declaration under this section shall be made as soon as may be after first appointment to the office in question.
PART II RETURNS OF INCOME AND GAINS
Income tax
C2477F372Notice of liability to income tax and capital gains tax.
1
Every person who—
a
is chargeable to income tax or capital gains tax for any year of assessment, and
b
has not received a notice under section 8 of this Act requiring a return for that year of his total income and chargeable gains,
shall, subject to subsection (3) below, within six months from the end of that year, give notice to an officer of the Board that he is so chargeable.
2
3
A person shall not be required to give notice under subsection (1) above in respect of a year of assessment if for that year his total income consists of income from sources falling within subsections (4) to (7) below and he has no chargeable gains.
4
A source of income falls within this subsection in relation to a year of assessment if—
a
all payments of, or on account of, income from it during that year, and
b
all income from it for that year which does not consist of payments,
have or has been taken into account in the making of deductions or repayments of tax under section 203 of the principal Act.
5
A source of income falls within this subsection in relation to any person and any year of assessment if all income from it for that year has been or will be taken into account—
a
in determining that person’s liability to tax, or
b
in the making of deductions or repayments of tax under section 203 of the principal Act.
6
A source of income falls within this subsection in relation to any person and any year of assessment if all income from it for that year is—
a
income from which income tax has been deducted;
b
income from or on which income tax is treated as having been deducted or paid; or
c
income chargeable under Schedule F,
and that person is not for that year liable to tax at a rate other than the basic rate or the lower rate.
7
A source of income falls within this subsection in relation to any person and any year of assessment if all income from it for that year is F511income on which he could not become liable to tax under a self-assessment made under section 9 of this Act in respect of that year.
8
If any person, for any year of assessment, fails to comply with subsection (1) above, he shall be liable to a penalty not exceeding the amount of the tax—
a
in which he is assessed under section 9 or 29 of this Act in respect of that year, and
b
which is not paid on or before the 31st January next following that year.
F5109
For the purposes of this Act the relevant trustees of a settlement are—
a
in relation to income, the persons who are trustees when the income arises and any persons who subsequently become trustees; and
b
in relation to chargeable gains, the persons who are trustees in the year of assessment in which the chargeable gains accrue and any persons who subsequently become trustees.
C16C178F17Personal return.
F3731
For the purpose of establishing the amounts in which a person is chargeable to income tax and capital gains tax for a year of assessment, he may be required by a notice given to him by an officer of the Board—
a
to make and deliver to the officer, on or before the day mentioned in subsection (1A) below, a return containing such information as may reasonably be required in pursuance of the notice, and
b
to deliver with the return such accounts, statements and documents, relating to information contained in the return, as may reasonably be so required.
1A
The day referred to in subsection (1) above is—
a
the 31st January next following the year of assessment, or
b
where the notice under this section is given after the 31st October next following the year, the last day of the period of three months beginning with the day on which the notice is given
F512and the amounts referred to in that subsection are net amounts, that is to say, amounts which take into account any relief, allowance or repayment of tax for which a claim is made and give credit for any income tax deducted at source and any tax credit to which section 231 of the principal Act applies.
1B
In the case of a person who carries on a trade, profession, or business in partnership with one or more other persons, a return under this section shall include each amount which, in any relevant statement, is stated to be equal to his share of any income, F513loss, tax, credit or charge for the period in respect of which the statement is made.
1C
In subsection (1B) above “relevant statement” means a statement which, as respects the partnership, falls to be made under section 12AB of this Act for a period which includes, or includes any part of, the year of assessment or its basis period.
2
Every return under this section shall include a declaration by the person making the return to the effect than the return is to the best of his knowledge correct and complete.
3
A notice under this section may require different information, accounts and statements for different periods or in relation to different descriptions of source of income.
4
Notices under this section may require different information, accounts and statements in relation to different descriptions of person.
F5145
In this section and sections 8A, 9 and 12AA of this Act, any reference to income tax deducted at source is a reference to income tax deducted or treated as deducted from any income or treated as paid on any income.
8AF17 Trustee’s return.
F3741
For the purpose of establishing the amounts in which F516the relevant trustees of a settlement, and the settlors and beneficiaries, are chargeable to income tax and capital gains tax for a year of assessment, an officer of the Board may by a notice given to F517any relevant trustee require the trustee—
a
to make and deliver to the officer, on or before the day mentioned in subsection (1A) below, a return containing such information as may reasonably be required in pursuance of the notice, and
b
to deliver with the return such accounts, statements and documents, relating to information contained in the return, as may reasonably be so required;
and a notice may be given to any one trustee or separate notices may be given to each trustee or to such trustees as the officer thinks fit.
1A
The day referred to in subsection (1) above is—
a
the 31st January next following the year of assessment, or
b
where the notice under this section is given after the 31st October next following the year, the last day of the period of three months beginning with the day on which the notice is given
F515and the amounts referred to in that subsection are net amounts, that is to say, amounts which take into account any relief, allowance or repayment of tax for which a claim is made and give credit for any income tax deducted at source and any tax credit to which section 231 of the principal Act applies.
2
Every return under this section shall include a declaration by the person making the return to the effect that the return is to the best of his knowledge correct and complete.
3
A notice under this section may require different information, accounts and statements for different periods or in relation to different descriptions of source of income.
4
Notices under this section may require different information, accounts and statements in relation to different descriptions of settlement.
F5185
The following references, namely—
a
references in section 9 or 28C of this Act to a person to whom a notice has been given under this section being chargeable to tax; and
b
references in section 29 of this Act to such a person being assessed to tax,
shall be construed as references to the relevant trustees of the settlement being so chargeable or, as the case may be, being so assessed.
9F375Returns to include self-assessment.
1
Subject to subsection (2) below, every return under section 8 or 8A of this Act shall include an assessment (a self-assessment) of the amounts in which,
F519a
on the basis of the information contained in the return; and
b
taking into account any relief, allowance or repayment of tax a claim for which is included in the return and giving credit for any income tax deducted at source and any tax credit to which section 231 of the principal Act applies,
the person making the return is chargeable to income tax and capital gains tax for the year of assessment.
2
A person shall not be required to comply with subsection (1) above if he makes and delivers his return for a year of assessment—
a
on or before the 30th September next following the year, or
b
where the notice under section 8 or 8A of this Act is given after the 31st July next following the year, within the period of two months beginning with the day on which the notice is given.
3
Where, in making and delivering a return, a person does not comply with subsection (1) above, an officer of the Board shall if subsection (2) above applies, and may in any other case—
a
make the assessment on his behalf on the basis of the information contained in the return, and
b
send him a copy of the assessment so made;
and references in F520... this Act to a person’s self-assessment include references to an assessment made on a person’s behalf under this subsection.
4
Subject to subsection (5) below—
a
at any time before the end of the period of nine months beginning with the day on which a person’s return is delivered, an officer of the Board may by notice to that person so amend that person’s self-assessment as to correct any obvious errors or mistakes in the return (whether errors of principle, arithmetical mistakes or otherwise); and
b
at any time before the end of the period of twelve months beginning with the filing date, a person may by notice to an officer of the Board so amend his self-assessment as to give effect to any amendments to his return which he has notified to such an officer.
5
No amendment of a self-assessment may be made under subsection (4) above at any time during the period—
a
beginning with the day on which an officer of the Board gives notice of his intention to enquire into the return, and
b
ending with the day on which the officer’s enquiries into the return are completed.
6
In this section and section 9A of this Act “the filing date” means the day mentioned in section 8(1A) or, as the case may be, section 8A(1A) of this Act.
9AF468Power to enquire into returns.
1
An officer of the Board may enquire into—
a
the return on the basis of which a person’s self-assessment was made under section 9 of this Act, or
b
any amendment of that return on the basis of which that assessment has been amended by that person,
if, before the end of the period mentioned in subsection (2) below, he gives notice in writing to that person of his intention to do so.
2
The period referred to in subsection (1) above is—
a
in the case of a return delivered or amendment made on or before the filing date, the period of twelve months beginning with that date;
b
in the case of a return delivered or amendment made after that date, the period ending with the quarter day next following the first anniversary of the day on which the return or amendment was delivered or made;
and the quarter days for the purposes of this subsection are 31st January, 30th April, 31st July and 31st October.
3
A return or amendment which has been enquired into under subsection (1) above shall not be the subject of a further notice under that subsection.
Corporation tax
10F19Notice of liability to corporation tax.
1
Every company which is chargeable to corporation tax for any accounting period and has neither—
a
made a return of its profits for that period, nor
b
received a notice under section 11 of this Act requiring such a return,
shall, within twelve months from the end of that period, give notice to the inspector that it is so chargeable.
2
If any company, for any accounting period ending on or before the appointed day, fails to comply with subsection (1) above, it shall be liable to a penalty not exceeding the amount of the corporation tax for which it is liable, in respect of its profits for that period, under assessments made more than twelve months after the end of that period.
3
If any company, for any accounting period ending after the appointed day, fails to comply with subsection (1) above, it shall be liable to a penalty not exceeding the amount by which so much of the corporation tax chargeable on its profits for that period as remains unpaid for twelve months after the end of that period exceeds any income tax F18which, under section 7(2) or 11(3) of the principal Act, is to be set off against the corporation tax so chargeable.
4
In determining—
a
for the purposes of subsection (2) above, for how much corporation tax a company is liable, in respect of its profits for an accounting period, under assessments made more than twelve months after the end of that period; or
b
for the purposes of subsection (3) above, how much of the corporation tax chargeable on the profits of a company for an accounting period remained unpaid at the time of any failure to comply with subsection (1) above,
no account shall be taken of the discharge of any liablility for that tax which, pursuant to a claim under subsection (3) of section 239 of the principal Act, is attributable to an amount of surplus advance corporation tax, as defined in that subsection.
5
In this section “the appointed day” means the day appointed for the purposes of section 8(3) of the principal Act.
11 Return of profits.
1
A company may be required by a notice served on the company by an F387... officer of the Board to deliver to the officer F376not later than the final day determined under subsection (4) below a return F377such information as may F384reasonably be required in pursuance of the notice together with such accounts, statements and reports as may F384reasonably be so required.
1A
The information which a company may F385reasonably be required to supply under this section is information which is relevant to the application of the Corporation Tax Acts to the company; and the accounts, statements and reports which a company may F385reasonably be so required to supply are accounts, statements and reports which are so relevant.
F3782
A notice under this section may require a return F379for any period specified in the notice (in this subsection referred to as “the specified period”) but, if the specified period does not coincide with an accounting period of the company and the company is within the charge to corporation tax in the whole or some part of the specified period, then—
a
if an accounting period of the company ends in or at the end of the specified period, the notice shall be taken to require a return for that accounting period or, if there is more than one, for each of them;
b
if no accounting period of the company ends in or at the end of the specified period but there is a part of the specified period which does not fall within an accounting period of the company, the notice shall be taken to require a return for that part of the specified period; and
c
if the specified period begins in or at the beginning of an accounting period of the company and ends before the end of that period, the notice shall be of no effect and, accordingly, the company shall not be required to make any return pursuant to it.
F3862A
In the case of a company which carries on a trade, profession or business in partnership with one or more other persons, a return under this section shall include each amount which, in any relevant statement, is stated to be equal to its share of any income, loss or charge for the period in respect of which the statement is made.
2B
In subsection (2A) above “relevant statement” means a statement which, as respects the partnership, falls to be made under section 12AB of this Act for a period which includes, or includes any part of, the period in respect of which the return is required.
3
F3804
Subject to subsection (5) below, the final day for the delivery of any return required by a notice under this section shall be whichever is the later of—
a
the first anniversary of the last day of the period to which the return relates;
b
the first anniversary of the last day of that period of account of the company in which falls the last day of the accounting period (if any) to which the return relates; and
c
the end of the period of three months beginning on the day following that on which the notice was served.
5
In paragraph (b) of subsection (4) above “period of account” has the same meaning as in the principal Act, but for the purposes of that paragraph the last day of a period of account which is longer than eighteen months shall be treated as the day on which expires the period of eighteen months beginning on the first day of the period of account.
6
In relation to a company which—
a
is resident in the United Kingdom throughout the period to which the return relates (in this subsection referred to as “the return period”); and
b
is required under the Companies Act 1985 to prepare accounts for a period consisting of or including the return period,
the reference to accounts in subsection (1) above is a reference only to such accounts, containing such particulars and having annexed to them such documents, as are required under that Act to be so prepared.
F3837
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Different information, accounts, statements and reports may be required in pursuance of a notice under this section in relation to different descriptions of company F382...
F3818A
A return under this section shall be amended by the company delivering to the inspector a document in such form, containing such information and accompanied by such statements as the Board may require.
9
In the application of this section to a company registered in Northern Ireland, references to the Companies Act 1985 shall be construed as references to the Companies (Northern Ireland) Order 1986.
F52111A Notice of liability to capital gains tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11AAF388Return of profits to include self-assessment.
1
Every return under section 11 of this Act for an accounting period shall include an assessment (a self-assessment) of the amount in which,
F522a
on the basis of the information contained in the return; and
b
taking into account any relief, allowance or repayment of tax a claim for which is included in the return,
the company is chargeable to corporation tax for that period.
2
Subject to subsection (3) below—
a
at any time before the end of the period of nine months beginning with the day on which a company’s return is delivered, an officer of the Board may by notice to the company so amend the company’s self-assessment as to correct any obvious errors or mistakes in the return (whether errors of principle, arithmetical mistakes or otherwise); and
b
at any time before the end of the period of twelve months beginning with the filing date, a company may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to its return which it has notified to such an officer.
3
No amendment of a self-assessment may be made under subsection (2) above at any time during the period—
a
beginning with the day on which an officer of the Board gives notice of his intention to enquire into the return, and
b
ending with the day on which the officer’s enquiries into the return are completed.
4
In this section and section 11AB of this Act “the filing date” means the day mentioned in section 11(4) of this Act.
11ABF391Power to enquire into return of profits.
1
An officer of the Board may enquire into—
a
the return on the basis of which a company’s self-assessment was made under section 11AA of this Act, or
b
any amendment of that return on the basis of which that assessment was amended under subsection (2)(b) of that section,
if, before the end of the period mentioned in subsection (2) below, he gives notice in writing to the company of his intention to do so.
2
The period referred to in subsection (1) above is—
a
in the case of a return delivered or amendment made on or before the filing date, the period of twelve months beginning with that date;
b
in the case of a return delivered or amendment made after that date, the period ending with the quarter day next following the first anniversary of the day on which the return or amendment was delivered or made;
and the quarter days for the purposes of this subsection are 31st January, 30th April, 31st July and 31st October.
3
A return or amendment which has been enquired into under subsection (1) above shall not be the subject of a further notice under that subsection.
12 Information about chargeable gains.
F3891
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
A notice under section 8 [F21or section 8A] or section 11 of this Act may require particulars of any assets acquired by the person on whom the notice was served (or if the notice relates to income or chargeable gains of some other person, of any assets acquired by that other person) in the period specified in the notice (being a period beginning not earlier than 6th April 1965) but excluding—
F26a
any assets exempted by the following provisions of the F221992 Act, namely—
i
section F2351(1) (rights to winnings from pool betting, lotteries or games with prizes),
ii
section F24121 (government non-marketable securities),
iii
section F25263, 268 or 269 (passenger vehicles, decorations for valour or gallant conduct and foreign currency for personal expenditure)], or
b
c
any assets acquired as trading stock.
3
The particulars required under this section may include particulars of the person from whom the asset was acquired, and of the consideration for the acquisition.
F3904
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
F392Partnerships
S. 12AA and cross-heading inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 184; S.I. 1998/3173, art. 2
12AA Partnership return.
F5231
Where a trade, profession or business is carried on by two or more persons in partnership, for the purpose of facilitating the establishment of the following amounts, namely—
a
the amount in which each partner chargeable to income tax for any year of assessment is so chargeable, and
b
the amount in which each partner chargeable to corporation tax for any period is so chargeable,
an officer of the Board may act under subsection (2) or (3) below (or both).
1A
The amounts referred to in paragraphs (a) and (b) of subsection (1) above are net amounts, that is to say, amounts which—
a
take into account any relief, allowance or repayment of tax for which a claim is made; and
b
in the case of the amount referred to in paragraph (a) of that subsection, give credit for any income tax deducted at source and any tax credit to which section 231 of the principal Act applies.
2
An officer of the Board may by a notice given to the partners require such person as is identified in accordance with rules given with the notice—
a
to make and deliver to the officer in respect of such period as may be specified in the notice, on or before such day as may be so specified, a return containing such information as may reasonably be required in pursuance of the notice, and
b
to deliver with the return F524such accounts, statements and documents, relating to information contained in the return, as may reasonably be so required.
3
An officer of the Board may by notice given to any partner require the partner—
a
to make and deliver to the officer in respect of such period as may be specified in the notice, on or before such day as may be so specified, a return containing such information as may reasonably be required in pursuance of the notice, and
b
to deliver with the return such accounts and statements as may reasonably be so required;
and a notice may be given to any one partner or separate notices may be given to each partner or to such partners as the officer thinks fit.
4
In the case of a partnership which includes one or more individuals, the day specified in a notice under subsection (2) or (3) above shall not be earlier than—
a
the 31st January next following the year of assessment concerned, or
b
where the notice under this section is given after the 31st October next following the year, the last day of the period of three months beginning with the day on which the notice is given.
5
In the case of a partnership which includes one or more companies, the day specified in a notice under subsection (2) or (3) above shall not be earlier than—
a
the first anniversary of the end of the relevant period, or
b
where the notice under this section is given more than nine months after the end of the relevant period, the last day of the period of three months beginning with the day on which the notice is given;
and the relevant period for the purposes of this subsection and subsection (6) below is the period in respect of which the return is required.
6
Every return under this section shall include—
a
a declaration of the name, residence and tax reference of each of the persons who have been partners—
i
for the whole of the relevant period, or
ii
for any part of that period,
and, in the case of a person falling within sub-paragraph (ii) above, of the part concerned; and
b
a declaration by the person making the return to the effect that it is to the best of his knowledge correct and complete.
7
Every return under this section shall also include, if the notice under subsection (2) or (3) above so requires—
a
with respect to any disposal of partnership property during a period to which any part of the return relates, the like particulars as if the partnership were liable to tax on any chargeable gain accruing on the disposal, and
b
with respect to any acquisition of partnership property, the particulars required under section 12(2) of this Act.
8
A notice under this section may require different information, accounts and statements for different periods or in relation to different descriptions of source of income.
9
Notices under this section may require different information, accounts and statements in relation to different descriptions of partnership.
10
In this section “residence”, in relation to a company, means its registered office.
12ABF394Partnership return to include partnership statement.
F5251
Every return under section 12AA of this Act shall include a statement (a partnership statement) of the following amounts, namely—
a
in the case of each period of account ending within the period in respect of which the return is made—
i
the amount of income or loss from each source which, on the basis of the information contained in the return and taking into account any relief or allowance a section 42(7) claim for which is included in the return, has accrued to or has been sustained by the partnership for that period,
ii
each amount of income tax which, on that basis, has been deducted or treated as deducted from any income of the partnership, or treated as paid on any such income, for that period,
iii
the amount of each tax credit which, on that basis, has accrued to the partnership for that period, and
iv
the amount of each charge which, on that basis, was a charge on the income of the partnership for that period; and
b
in the case of each such period and each of the partners, the amount which, on that basis and (where applicable) taking into account any such relief or allowance, is equal to his share of that income, loss, tax, credit or charge.
2
Subject to subsection (3) below—
a
at any time before the end of the period of nine months beginning with the day on which a person’s return is delivered, an officer of the Board may by notice to that person so amend that person’s partnership statement as to correct any obvious errors or mistakes in the return (whether errors of principle, arithmetical mistakes or otherwise); and
b
at any time before the end of the period of twelve months beginning with the filing date, a person may by notice to an officer of the Board so amend his partnership statement as to give effect to any amendments to his return which he has notified to such an officer.
3
No amendment of a partnership statement may be made under subsection (2) above at any time during the period—
a
beginning with the day on which an officer of the Board gives notice of his intention to enquire into the return, and
b
ending with the day on which the officer’s enquiries into the return are completed.
4
Where a partnership statement is amended under subsection (2) above, the officer shall by notice to the partners so amend their self-assessments under section 9 or 11AA of this Act as to give effect to the amendments of the partnership statement.
5
In this section—
“filing date” means the day specified in the notice under subsection (2) or, as the case may be, subsection (3) of section 12AA of this Act;
“period of account”, in relation to a partnership, means any period for which accounts are drawn up;
F526“section 42(7) claim” means a claim under any of the provisions mentioned in section 42(7) of this Act;
F526“tax credit” means a tax credit to which section 231 of the principal Act applies.
12ABZAAF592Returns relating to LLP not carrying on business etc with view to profit
1
This section applies where—
a
a person delivers a purported partnership return (“the relevant return”) in respect of a period (“the relevant period”),
b
the relevant return—
i
is made on the basis that the activities of a limited liability partnership (“the LLP”) are treated, under section 863 of ITTOIA 2005 or section 1273 of CTA 2009, as carried on in partnership by its members (“the purported partnership”), and
ii
relates to the purported partnership, but
c
the LLP does not carry on a business with a view to profit in the relevant period (and, accordingly, its activities are not treated as mentioned in paragraph (b)(i)).
2
For the purposes of the relevant enactments, treat the relevant return as a partnership return (and, accordingly, anything done under a relevant enactment in connection with the relevant return has the same effect as it would have if done in connection with a partnership return in a corresponding partnership case).
3
“Relevant enactment” means—
a
any of the following—
i
sections 12AC and 28B (enquiries into partnership returns),
ii
Part 4 of FA 2014 (follower notices and accelerated payment notices), and
b
any enactment relating to, or applying for the purposes of, an enactment within paragraph (a).
4
In relation to the relevant return, the relevant enactments apply with the necessary modifications, including in particular the following—
a
“partner” includes purported partner, and
b
“partnership” includes the purported partnership.
5
In this section—
“business” includes trade or profession;
“corresponding partnership case” means a corresponding case in which the limited liability partnership in question carries on a business with a view to profit in the relevant period;
“purported partner” means any person who was a member of the LLP in the relevant period;
“purported partnership return” means anything that—
- a
purports to be a partnership return, and
- b
is in a form, and is delivered in a way, that a partnership return could have been made and delivered in a corresponding partnership case.
- a
12ACF395Power to enquire into partnership return.
1
An officer of the Board may enquire into—
a
the return on the basis of which a person’s partnership statement was made under section 12AB of this Act, or
b
any amendment of that return on the basis of which that statement has been amended by that person,
if, before the end of the period mentioned in subsection (2) below, he gives notice in writing of his intention to do so to that person or any successor of that person.
2
The period referred to in subsection (1) above is—
a
in the case of a return delivered or amendment made on or before the filing date, the period of twelve months beginning with that date;
b
in the case of a return delivered or amendment made after that date, the period ending with the quarter day next following the first anniversary of the day on which the return or amendment was delivered or made;
and the quarter days for the purposes of this subsection are 31st January, 30th April, 31st July and 31st October.
3
The giving of notice under subsection (1) above at any time shall be deemed to include the giving of notice under section 9A(1) or, as the case may be, section 11AB(1) of this Act to each partner who—
a
at that time, has made a return under section 9 or 11 of this Act, or
b
at any subsequent time, makes such a return.
4
A return or amendment which has been enquired into under subsection (1) above shall not be the subject of a further notice under that subsection.
5
In this section “the filing date” means the day specified in the notice under subsection (2) or, as the case may be, subsection (3) of section 12AA of this Act.
6
In this Act “successor”, in relation to a person who—
a
has made and delivered a return under section 12AA of this Act, but
b
is no longer a partner or is otherwise no longer available,
means such other partner who may at any time be nominated for the purposes of this subsection by the majority of the partners at that time, and “predecessor” and “successor”, in relation to a person so nominated, shall be construed accordingly.
F30European Economic Interest Groupings
S. 12A and cross-heading inserted (1.7.1989) by Finance Act 1990 (c. 29), s. 69, Sch. 11 paras. 2, 5
12A European Economic Interest Groupings.
1
In this section “grouping” means a European Economic Interest Grouping formed in pursuance of Council Regulation (EEC) No. 2137/85 of 25th July 1985 (“the Council Regulation”), whether registered in Great Britain, in Northern Ireland, or elsewhere.
2
For the purposes of F393securing that members of a grouping are assessed to income tax and capital gains tax or (as the case may be) corporation tax, an inspector may act under subsection (3) or (4) below.
3
In the case of a grouping which is registered in Great Britain or Northern Ireland or has an establishment registered in Great Britain or Northern Ireland, and inspector may by a notice given to the grouping require the grouping—
a
to make and deliver to the inspector within the time limited by the notice a return containing such information as may be required in pursuance of the notice, and
b
to deliver with the return such accounts and statements as may be required in pursuance of the notice.
4
In the case of any other grouping, an inspector may by a notice given to any member of the grouping resident in the United Kingdom, or if none is to any member of the grouping, require the member—
a
to make and deliver to the inspector within the time limited by the notice a return containing such information as may be required in pursuance of the notice, and
b
to deliver with the return such accounts and statements as may be required in pursuance of the notice,
and a notice may be given to any one of the members concerned or separate notices may be given to each of them or to such of them as the inspector thinks fit.
5
Every return under this section shall include a declaration by the grouping or member making the return to the effect that the return is to the best of the maker’s knowledge correct and complete.
6
A notice under this section may require different information, accounts and statements for different periods, in relation to different descriptions of income or gains or in relation to different descriptions of member.
7
Notices under this section may require different information, accounts and statements in relation to different descriptions of grouping.
8
Subject to subsection (9) below, where a notice is given under subsection (3) above, everything required to be done shall be done by the grouping acting through its manager or, where there is more than one, any of them; but where the manager of a grouping (or each of them) is a person other than an individual, the grouping shall act through the individual, or any of the individuals, designated in accordance with the Council Regulation as the representative of the manager (or any of them).
9
Where the contract for the formation of a grouping provides that the grouping shall be validly bound only by two or more managers acting jointly, any declaration required by subsection (5) above to be included in a return made by a grouping shall be given by the appropriate number of managers.
F469Records
S. 12B and cross-heading inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 3; S.I. 1998/3173, art. 2
12B Records to be kept for purposes of returns.
1
Any person who may be required by a notice under section 8, 8A, 11 or 12AA of this Act (or under any of those sections as extended by section 12 of this Act) to make and deliver a return for a year of assessment or other period shall—
a
keep all such records as may be requisite for the purpose of enabling him to make and deliver a correct and complete return for the year or period; and
F527b
preserve those records until the end of the relevant day, that is to say, the day mentioned in subsection (2) below or, where a return is required by a notice given on or before that day, whichever of that day and the following is the latest, namely—
i
where enquiries into the return or any amendment of the return are made by an officer of the Board, the day on which, by virtue of section 28A(5) or 28B(5) of this Act, those enquiries are treated as completed; and
ii
where no enquiries into the return or any amendment of the return are so made, the day on which such an officer no longer has power to make such enquiries.
2
The day referred to in subsection (1) above is—
a
in the case of a person carrying on a trade, profession or business alone or in partnership or a company, the fifth anniversary of the 31st January next following the year of assessment or (as the case may be) the sixth anniversary of the end of the period;
b
in any other case, the first anniversary of the 31st January next following the year of assessment F528...
F5292A
Any person who—
a
is required, by such a notice as is mentioned in subsection (1) above given at any time after the end of the day mentioned in subsection (2) above, to make and deliver a return for a year of assessment or other period; and
b
has in his possession at that time any records which may be requisite for the purpose of enabling him to make and deliver a correct and complete return for the year or period,
shall preserve those records until the end of the relevant day, that is to say, the day which, if the notice had been given on or before the day mentioned in subsection (2) above, would have been the relevant day for the purposes of subsection (1) above.
3
In the case of a person carrying on a trade, profession or business alone or in partnership—
a
the records required to be kept and preserved under subsection (1) F530or (2A) above shall include records of the following, namely—
i
all amounts received and expended in the course of the trade, profession or business and the matters in respect of which the receipts and expenditure take place, and
ii
in the case of a trade involving dealing in goods, all sales and purchases of goods made in the course of the trade; and
b
the duty under that subsection shall include a duty to preserve until F531the end of the relevant day all supporting documents relating to such items as are mentioned in paragraph (a)(i) or (ii) above.
4
The duty under subsection (1) F532or (2A) above to preserve records may be discharged by the preservation of the information contained in them; and where information is so preserved a copy of any document forming part of the records shall be admissible in evidence in any proceedings before the Commissioners to the same extent as the records themselves.
5
F5355A
Subsection (5) above does not apply where the records which the person fails to keep or preserve are records which might have been requisite only for the purposes of claims, elections or notices which are not included in the return.
6
For the purposes of this section—
a
a person engaged in the letting of property shall be treated as carrying on a trade; and
b
“supporting documents” includes accounts, books, deeds, contracts, vouchers and receipts.
F588Voluntary returns
S. 12D and cross-heading inserted (retrospective) by Finance Act 2019 (c. 1), s. 87(1)(3) (with s. 87(4))
C25512DReturns made otherwise than pursuant to a notice
1
This section applies where—
a
a person delivers a purported return (“the relevant return”) under section 8, 8A or 12AA (“the relevant section”) for a year of assessment or other period (“the relevant period”),
b
no notice under the relevant section has been given to the person in respect of the relevant period, and
c
HMRC treats the relevant return as a return made and delivered in pursuance of such a notice.
2
For the purposes of the Taxes Acts—
a
treat a relevant notice as having been given to the person on the day the relevant return was delivered, and
b
treat the relevant return as having been made and delivered in pursuance of that notice (and, accordingly, treat it as if it were a return under the relevant section).
3
“Relevant notice” means—
a
in relation to section 8 or 8A, a notice under that section in respect of the relevant period;
b
in relation to section 12AA, a notice under section 12AA(3) requiring the person to deliver a return in respect of the relevant period, on or before the day the relevant return was delivered (or, if later, the earliest day that could be specified under section 12AA).
4
In subsection (1)(a) “purported return” means anything that—
a
is in a form, and is delivered in a way, that a corresponding return could have been made and delivered had a relevant notice been given, and
b
purports to be a return under the relevant section.
5
Nothing in this section affects sections 34 to 36 or any other provisions of the Taxes Acts specifying a period for the making or delivering of any assessment (including self-assessment) to income tax or capital gains tax.
PART III OTHER RETURNS AND INFORMATION C32
See also—Finance Act 1973 s.38andSch.15 para.2—particulars which may be required from holder of licence under thePetroleum (Production) Act 1934 (c.36).Finance Act 1974 s.47andSch.10 para.3—duty to make returns in relation to tax on first letting or occupation of building after material development, andpara.4—particulars which may be required for purposes of such tax or tax on development gains.Finance Act 1988 (c. 39, SIF 63:1,2) s. 127—production of computer records.
13 Persons in receipt of taxable income belonging to others.
1
Every person who, in whatever capacity, is in receipt of any money or value, or of any profits or gains from any of the sources mentioned in the Income Tax Acts, of or belonging to another person who is chargeable to income tax in respect thereof, or who would be so chargeable if he were resident in the United Kingdom and not an incapacitated person, shall, whenever required to do so by a notice given to him by an inspector, prepare and deliver, within the time mentioned in the notice, a return F31... , signed by him, containing—
a
a statement of all such money, value, profits or gains, and
b
the name and address of every person to whom the same belong, and
c
a declaration whether every such person is of full age, F32... , or is resident in the United Kingdom or is an incapacitated person.
2
If any person described above is acting jointly with any other person, he shall, in like manner, deliver a return of the names and addresses of all persons joined with him at the time of delivery of the return mentioned in subsection (1) above F33.
F343
A notice under this section shall not require information as to any money, value, profits or gains received in a year of assessment ending more than three years before the date of the giving of the notice.]
14 Return of lodgers and inmates.
Every person, when required to do so by a notice served on him by an inspector, shall, within the time limited by the notice, prepare and deliver to the inspector a return, in writing, containing to the best of his belief—
a
the name of every lodger or inmate resident in his dwelling-house, and
b
the name and ordinary place of residence of any such lodger or inmate who has any ordinary place of residence elsewhere at which he can be assessed and who desires to be assessed at such ordinary place of residence.
F53615 Return of employees’ emoluments etc.
1
Every employer, when required to do so by notice from an officer of the Board, shall, within the time limited by the notice, prepare and deliver to the officer a return relating to persons who are or have been employees of his, containing the information required under the following provisions of this section.
2
An employer shall not be required to include in his return information relating to any year of assessment if the notice is given more than five years after the 31st January next following that year.
3
A notice under subsection (1) above—
a
shall specify the employees for whom a return is to be made and may, in particular, specify individuals (by name or otherwise) or all employees of an employer or all his employees who are or have been in employment to which Chapter II of Part V of the principal Act applies; and
b
shall specify the years of assessment or other periods with respect to which the information is to be provided.
4
A notice under subsection (1) above may require the return to state the name and place of residence of an employee to whom it relates.
5
A notice under subsection (1) above may require the return to contain, in respect of an employee to whom it relates, the following particulars—
a
in the case of relevant payments made by the employer, particulars of the payments;
b
in the case of relevant payments not falling within paragraph (a) above the making of which by another person has been arranged by the employer—
i
particulars of the payments; and
ii
the name and business address of the other person; and
c
in the case of relevant payments not falling within either of the preceding paragraphs, the name and business address of any person who has, to the employer’s knowledge, made the payments.
6
Any payments made to an employee in respect of his employment are relevant payments for the purposes of this section, including—
a
payments to him in respect of expenses (including sums put at his disposal and paid away by him);
b
payments made on his behalf and not repaid; and
c
payments to him for services rendered in connection with a trade or business, whether the services were rendered in the course of his employment or not.
7
Where, for the purposes of his return, an employer apportions expenses incurred partly in or in connection with a particular matter and partly in or in connection with other matters—
a
the return shall contain a statement that the sum included in the return is the result of such an apportionment; and
b
if required to do so by notice from an officer of the Board, the employer shall prepare and deliver to the officer, within the time limited by the notice, a return containing full particulars as to the amount apportioned and the manner in which, and the grounds on which, the apportionment has been made.
8
A notice under subsection (1) above may require the return—
a
to state in respect of an employee to whom it relates whether any benefits are or have been provided for him (or for any other person) by reason of his employment, such as may give rise to charges to tax under the relevant sections, that is to say, sections 141, 142, 143, 144A, 145, 146 and 154 to 165 of the principal Act (miscellaneous benefits in cash or in kind); and
b
if such benefits are or have been provided, to contain such particulars of those benefits as may be specified in the notice.
9
Where such benefits are provided the notice may, without prejudice to subsection (8)(b) above, require the return to contain the following particulars—
a
in the case of benefits which are or have been provided by the employer, particulars of the amounts which may be chargeable to tax by virtue of the relevant sections;
b
in the case of benefits not falling within paragraph (a) above the provision of which by another person is or has been arranged by the employer—
i
particulars of the amounts which may be so chargeable; and
ii
the name and business address of the other person; and
c
in the case of benefits not falling within either of the preceding paragraphs, the name and business address of any person who has, to the employer’s knowledge, provided the benefits.
10
Where it appears to an officer of the Board that a person has, in any year of assessment, been concerned in making relevant payments to, or providing benefits to or in respect of, employees of another, the officer may at any time up to five years after the 31st January next following that year by notice require that person—
a
to deliver to the officer, within the time limited by the notice, such particulars of those payments or benefits, or of the amounts which may be chargeable to tax in respect of the benefits, as may be specified in the notice (so far as known to him); and
b
to include with those particulars the names and addresses (so far as known to him) of the employees concerned.
11
In determining, in pursuance of a notice under subsection (1) or (10) above, amounts which may be chargeable to tax by virtue of the relevant sections, a person—
a
shall not make—
i
any deduction or other adjustment which he is unable to show, by reference to information in his possession or otherwise available to him, is authorised or required by the relevant sections; or
ii
any deduction authorised by section 141(3), 142(2), 145(3) or 156(8) of the principal Act; but
b
subject to that, shall make all such deductions and other adjustments as may be authorised or required by the relevant sections.
12
Where the employer is a body of persons, the secretary of the body or other officer (by whatever name called) performing the duties of secretary shall be treated as the employer for the purposes of this section.
Where the employer is a body corporate, that body corporate, as well as the secretary or other officer, shall be liable to a penalty for failure to comply with this section.
13
In this section—
“arranged” includes guaranteed and in any way facilitated;
“employee” means an office holder or employee whose emoluments fall to be assessed under Schedule E, and related expressions are to be construed accordingly;
“relevant payments” has the meaning given by subsection (6) above; and
“the relevant sections” has the meaning given by subsection (8)(a) above.
16 Fees, commissions, etc.
1
Every person carrying on a trade or business shall, if required to do so by notice from an inspector, make and deliver to the inspector a return of all payments of any kind specified in the notice made during a period so specified, being—
a
payments made in the course of the trade or business, or of such part of the trade or business as may be specified in the notice, for services rendered by persons not employed in the trade or business, or
b
payments for services rendered in connection with the formation, acquisition, development or disposal of the trade or business, or any part of it, by persons not employed in the trade or business, or
c
periodical or lump sum payments made in respect of any copyright [F35public lending right, right in a registered design or design right ].
2
Every body of persons carrying on any activity which does not constitute a trade or business shall, if required to do so by notice from an inspector, make and deliver to the inspector a return of all payments of a kind specified in the notice made during a period so specified, being—
a
payments made in the course of carrying on the activity, or such part of the activity as may be specified in the notice, for services rendered by persons not employed by the said body of persons, or
b
periodical or lump sum payments made in respect of any copyright [F35public lending right, right in a registered design or design right .]
3
A return required under either of the preceding subsections shall, if the trade or business or other activity is carried on by an unincorporated body of persons (other than a company), be made and delivered by the person who is or performs the duties of secretary of the body, and the notice shall be framed accordingly.
4
A return under the preceding provisions of this section shall give the name of the person to whom each payment was made, the amount of the payment and such other particulars (including particulars as to the services or rights in respect of which the payment was made, the period over which any services were rendered and any business name and any business or home address of the person to whom payment was made) as may be specified in the notice.
5
No person shall be required under the preceding provisions of this section to include in a return—
a
particulars of any payment from which income tax is deductible, or
b
particulars of payments made to any one person where the total of the payments to that person which would otherwise fall to be included in the return does not exceed £15, or
c
particulars of any payment made in a year of assessment ending more than three years before the service of the notice requiring him to make the return.
F366
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
In this section—
a
references to payments for services include references to payments in the nature of commission of any kind and
references to payments in respect of expenses incurred in connection with the rendering of services, and
b
references to the making of payments include references to the giving of any valuable consideration,
and the requirement imposed by subsection (4) above to state the amount of a payment shall, in relation to any consideration given otherwise than in the form of money, be construed as a requirement to give particulars of the consideration.
F378
In subsection (2) above references to a body of persons include references to any department of the Crown, any public or local authority and any other public body .]
16AF38 Agency workers.
1
Where—
a
any services which an individual renders or is under an obigation to render under a contract are treated under section 134(1) of the principal Act as the duties of an office or employment held by him; or
b
any remuneration receivable under or in consequence of arrangements to which subsection (6) of that section applies is treated under that subsection as emoluments of an office or employment held by an individual,
section 15 above shall apply as if that individual were employed—
i
in a case within paragraph (a) above, by the persons or each of the persons from whom he receives any remuneration under or in consequence of the contract; and
ii
in a case within paragraph (b) above, by the other party to the arrangements,
and section 16 above shall not apply to any payments made to that individual under or in consequence of that contract or those arrangements.
2
In subsection (1) above “remuneration”, in relation to an individual, does not include anything in respect of which he would not have been chargeable to tax under Schedule E if it had been receivable in connection with an office or employment held by him but, subject to that, includes every form of payment and all perquisites, benefits and profits whatsoever.
C2217 Interest paid or credited by banks, etc. without deduction of income tax.
1
Every person carrying on a trade or business who, in the ordinary course of the operations thereof, receives or retains money in such circumstances that interest becomes payable thereon which is paid or credited without deduction of income tax F39or after deduction of income tax, and, in particular, every person carrying on the trade or business of banking, shall, if required to do so by notice from an inspector, make and deliver to the inspector, within the time specified in the notice, a return of all interest paid or credited by him as aforesaid during a year [F40of assessment] specified in the notice in the course of his trade or business or any such part of his trade or business as may be so specified, giving the names and addresses of the persons to whom the interest was paid or credited and stating, in each case, the amount of the interest F39actually paid or credited and (where the interest was paid or credited after deduction of income tax) the amount of the interest from which the tax was deducted and the amount of the tax deducted:
Provided that—
F41a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Without prejudice to the generality of so much of subsection (1) above as enables different notices to be served thereunder in relation to different parts of a trade or business, separate notices may be served under that subsection as respects the transactions carried on at any branch or branches respectively specified in the notices, and any such separate notice shall, if served on the manager or other person in charge of the branch or branches in question, be deemed to have been duly served on the person carrying on the trade or business; and where such a separate notice is so served as respects the transactions carried on at any branch or branches, any notice subsequently served under the said subsection (1) on the person carrying on the trade or business shall not be deemed to extend to any transaction to which the said separate notice extends.
M23
This section shall, with any necessary adaptations, apply in relation to the National Savings Bank as if it were a trade or business carried on by the Director of Savings C20.
4
This section shall apply only to money received or retained in the United Kingdom, F42... .
F434A
If a person to whom any interest is paid or credited in respect of any money received or retained in the United Kingdom by notice in writing served on the person paying or crediting the interest—
a
has declared that the person beneficially entitled to the interest is a company not resident in the United Kingdom, and
b
has requested that the interest shall not be included in any return under this section,
the person paying or crediting the interest shall not be required to include the interest in any such return.
4B
Subsection (4C) below shall apply where—
a
as a result of a declaration made under section 481(5)(k) of the principal Act and the operation of section 482(5) of that Act in relation to that declaration, there is no obligation under section 480A(1) of that Act to deduct a sum representing income tax out of any interest paid or credited in respect of any money received or retained in the United Kingdom, and
b
the person who makes the declaration referred to in paragraph (a) above, by notice in writing served on the person paying or crediting the interest, requests that the interest shall not be included in any return under this section.
4C
Where this subsection applies, the person paying or crediting the interest shall not be required to include the interest in any return under this section.
F445
The Board may by regulations provide as mentioned in all or any of the following paragraphs—
a
that a return under subsection (1) above shall contain such further information as is prescribed if the notice requiring the return specifies the information and requires it to be contained in the return;
b
that a person required to make and deliver a return under subsection (1) above shall furnish with the return such further information as is prescribed if the notice requiring the return specifies the information and requires it to be so furnished;
c
that if a person is required to furnish information under any provision made under paragraph (b) above, and the notice requiring the return specifies the form in which the information is to be furnished, the person shall furnish the information in that form;
d
that a notice under subsection (1) above shall not require prescribed information;
and in this subsection “prescribed” means prescribed by the regulations.
6
Regulations under subsection (5) above—
a
shall be made by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons,
b
may make different provision in relation to different cases or descriptions of case, and
c
may include such supplementary, incidental, consequential or transitional provisions as appear to the Board to be necessary or expedient.
18 Interest paid without deduction of income tax.
1
Any person by whom any interest is paid in the year 1969—70 or any subsequent year of assessment without deduction of income tax F343or after deduction of income taxF45... shall, on being so required by a notice given to him by an inspector, furnish to the inspector, within the time limited by the notice—
a
the name and address of the person to whom the interest has been paid or on whose behalf the interest has been received, and
b
the amount of the interest F344actually paid or received and (where the interest has been paid or received after deduction of income tax) the amount of the interest from which the tax has been deducted and the amount of the tax deducted,
and any person who receives any such interest on behalf of another person shall on being so required furnish to the inspector the name and address of the person on whose behalf the interest has been received, and F345the amount actually received and (where the interest has been received after deduction of income tax) the amount of the interest from which the tax has been deducted and the amount of the tax deducted.
2
The persons to whom [F46subsection (1) above ] applies include any officer in any public office or in any department of the Crown.
3
[F46Subsection (1) above ] shall not impose any obligation on a bank carrying on a bona fide business in the United Kingdom in respect of any interest paid by the bank in the ordinary course of that business.
F473A
A notice under this section shall not require information with respect to interest paid in a year of assessment ending more than three years before the date of the giving of the notice.
F483B
The Board may by regulations provide as mentioned in all or any of the following paragraphs—
a
that a person required to furnish information under subsection (1) above shall furnish at the same time such further information as is prescribed if the notice concerned specifies the information and requires it to be so furnished;
b
that if a person is required to furnish information under subsection (1) above or under any provision made under paragraph (a) above, and the notice concerned specifies the form in which the information is to be furnished, the person shall furnish the information in that form;
c
that a notice under subsection (1) above shall not require prescribed information;
and in this subsection “prescribed” means prescribed by the regulations.
3C
Regulations under subsection (3B) above—
a
shall be made by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons,
b
may make different provision in relation to different cases or descriptions of case, and
c
may include such supplementary, incidental, consequential or transitional provisions as appear to the Board to be necessary or expedient.
F493D
For the purposes of this section, the payment by a building society of a dividend in respect of a share in the society shall be treated as the payment of interest.
F504
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18AF51 Other payments and licences etc.
1
Any person by whom any payment out of public funds is made by way of grant or subsidy shall, on being so required by a notice given to him by an inspector, furnish to the inspector, within the time limited by the notice—
a
the name and address of the person to whom the payment has been made or on whose behalf the payment has been received, and
b
the amount of the payment so made or received,
and any person who receives any such payment on behalf of another person shall on being so required furnish to the inspector the name and address of the person on whose behalf the payment has been received, and its amount.
2
Any person to whom licences or approvals are issued or a register is maintained shall, on being so required by a notice given to him by an inspector, furnish to the inspector within the time limited by the notice—
a
the name and address of any person who is or has been the holder of a licence or approval issued by the first-mentioned person, or to whom an entry in that register relates or related; and
b
particulars of the licence or entry.
3
The persons to whom this section applies include any department of the Crown, any public or local authority and any other public body.
4
A notice is not to be given under this section unless (in the inspector’s reasonable opinion) the information required is or may be relevant to any tax liability to which a person is or may be subject, or the amount of any such liability.
5
A notice under this section shall not require information with respect to a payment which was made, or to a licence, approval or entry which ceased to subsist—
a
before 6th April 1988; or
b
in a year of assessment ending more than three years before the date of the giving of the notice.
6
For the purposes of this section a payment is a payment out of public funds if it is provided directly or indirectly by the Crown, by any Government, public or local authority whether in the United Kingdom or elsewhere or by any Community institution.
19 Information for purposes of Schedule A.
1
For the purpose of obtaining particulars of profits or gains chargeable to tax under Schedule A (or, for chargeable periods ending before 6th April 1970, under Case VIII of Schedule D), the inspector may by notice in writing require—
a
any lessee, occupier or former lessee or occupier of land (including any person having, or having had, the use of land) to give such information as may be prescribed by the Board as to the terms applying to the lease, occupation or use of the land, and where any of those terms are established by any written instrument, to produce the instrument to the inspector,
b
any lessee or former lessee of land to give such information as may be so prescribed as to any consideration given for the grant or assignment to him of the tenancy,
c
any person who as agent manages land or is in receipt of rent or other payments arising from land to furnish the inspector with such particulars relating to payments arising therefrom as may be specified in the notice.
2
Subsection (1) above shall apply in relation to sums chargeable to tax under Case VI of Schedule D by virtue of any provision of sections [F5234 to 36] of the principal Act as it applies to profits or gains chargeable to tax under Schedule A or Case VIII of Schedule D.
3
In this section -—
a
“lease” includes an agreement for a lease, and any tenancy, but does not include a mortgage or heritable security, and “lessee” shall be construed accordingly but shall include the successor in title of a lessee,
b
in relation to Scotland “assignment” means an assignation.
F534
A notice under this section shall not require information with respect to—
a
the terms applying to the lease, occupation or use of the land, or
b
consideration given, or
c
payments arising,
in a year of assessment ending more than three years before the date of the giving of the notice.
Production of accounts, books and other information
19AF396Power to call for documents for purposes of certain enquiries.
1
This section applies where an officer of the Board gives notice under section 9A(1), 11AB(1) or 12AC(1) of this Act to any person (the taxpayer) of his intention to enquire into—
a
the return on the basis of which the taxpayer’s self-assessment or partnership statement was made, or
b
any amendment of that return on the basis of which that assessment or statement has been amended by the taxpayer.
2
For the purpose of enquiring into the return or amendment, the officer may at the same or any subsequent time by notice in writing require the taxpayer, within such time (which shall not be less than 30 days) as may be specified in the notice—
a
to produce to the officer such documents as are in the taxpayer’s possession or power and as the officer may reasonably require for the purpose of determining whether and, if so, the extent to which the return is incorrect or incomplete or the amendment is incorrect, and
b
to furnish the officer with such accounts or particulars as he may reasonably require for that purpose.
3
To comply with a notice under subsection (2) above, copies of documents may be produced instead of originals; but—
a
the copies must be photographic or otherwise by way of facsimile; and
b
if so required by a notice in writing given by the officer, in the case of any document specified in the notice, the original must be produced for inspection by him within such time (which shall not be less than 30 days) as may be specified in the notice.
4
The officer may take copies of, or make extracts from, any document produced to him under subsection (2) or (3) above.
5
A notice under subsection (2) above does not oblige the taxpayer to produce documents or furnish accounts or particulars relating to the conduct of any pending appeal by him.
6
An appeal may be brought against any requirement imposed by a notice under subsection (2) above to produce any document or to furnish any accounts or particulars.
7
An appeal under subsection (6) above must be brought within the period of 30 days beginning with the date on which the notice under subsection (2) above is given.
8
Subject to subsection (9) below, the provisions of this Act relating to appeals shall have effect in relation to an appeal under subsection (6) above as they have effect in relation to an appeal against an assessment to tax.
9
On an appeal under subsection (6) above section 50(6) to (8) of this Act shall not apply but the Commissioners may—
a
if it appears to them that the production of the document or the furnishing of the accounts or particulars was reasonably required by the officer of the Board for the purpose mentioned in subsection (2) above, confirm the notice under that subsection so far as relating to the requirement; or
b
if it does not so appear to them, set aside that notice so far as so relating.
10
Where, on an appeal under subsection (6) above, the Commissioners confirm the notice under subsection (2) above so far as relating to any requirement, the notice shall have effect in relation to that requirement as if it had specified 30 days beginning with the determination of the appeal.
11
Neither the taxpayer nor the officer of the Board shall be entitled to require a case to be stated under section 56 of this Act following the determination of an appeal under subsection (6) above.
12
Where this section applies by virtue of a notice given under section 12AC(1) of this Act, any reference in this section to the taxpayer includes a reference to any predecessor or successor of his.
20F62 Power to call for documents of taxpayer and others.
1
Subject to this section, an inspector may by notice in writing require [F54a person—
a
to deliver to him such documents as are in the person’s possession or power and as (in the inspector’s reasonable opinion) contain, or may contain, information relevant to—
i
any tax liability to which the person is or may be subject, or
ii
to the amount of any such liability, or
b
to furnish to him such particulars as the inspector may reasonably require as being relevant to, or to the amount of, any such liability.]
2
Subject to this section, the Board may by notice in writing require [F54a person—
a
to deliver, to a named officer of the Board such documents as are in the person’s possession or power and as (in the Board’s reasonable opinion) contain, or may contain, information relevant to—
i
any tax liability to which the person is or may be subject, or
ii
to the amount of such liability, or
b
to furnish to a named officer of the Board such particulars as the Board may reasonably require as being relevant to, or to the amount of, any such liability].
3
Subject to this section, an inspector may, for the purpose of enquiring into the tax liability of any person (“the taxpayer”), by notice in writing require any [F54other person] to deliver to the inspector or, if the person to whom the notice is given so elects, to make available for inspection by a named officer of the Board, such documents as are in his possession or power and as (in the inspector’s reasonable opinion) contain, or may contain, information relevant to any tax liability to which the taxpayer is or may be, or may have been, subject, or to the amount of any such liability[F55; and the persons who may be required to deliver or make available a document under this subsection include the Director of Savings.]
F574
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F575
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
7
Notices under [F56subsection (1) or (3) above] are not to be given by an inspector unless he is authorised by the Board for its purposes; and—
a
a notice is not to be given by him except with the consent of a General or Special Commissioner; and
b
the Commissioner is to give his consent only on being satisfied that in all the circumstances the inspector is justified in proceeding under this section.
F597A
A notice under subsection (2) above is not to be given unless the Board have reasonable grounds for believing—
a
that the person to whom it relates may have failed or may fail to comply with any provision of the Taxes Acts; and
b
that any such failure is likely to have led or to lead to serious prejudice to the proper assessment or collection of tax.]
F3977AB
A Commissioner who has given his consent under subsection (7) above shall neither take part in, nor be present at, any proceedings on, or related to, any appeal brought—
a
in the case of a notice under subsection (1) above, by the person to whom the notice applies, or
b
in the case of a notice under subsection (3) above, by the taxpayer concerned,
if the Commissioner has reason to believe that any of the required information is likely to be adduced in evidence in those proceedings.
7AC
In subsection (7AB) above “required information” means any document or particulars which were the subject of the proposed notice with respect to which the Commissioner gave his consent.
F588
Subject to subsection (8A) below, a notice under subsection (3) above shall name the taxpayer with whose liability the inspector (or, where section 20B(3) applies, the Board) is concerned .]
F608A
If, on an application made by an inspector and authorised by order of the Board, a Special Commissioner gives his consent, the inspector may give such a notice as is mentioned in subsection (3) above by without naming the taxpayer to whom the notice relates; but such a consent shall not be given unless the Special Commissioner is satisfied—
a
that the notice relates to a taxpayer whose identity is not known to the inspector or to a class of taxpayers whose individual identities are not so known;
b
there are reasonable grounds for believing that the taxpayer or any of the class of taxpayers to whom the notice relates may have failed or may fail to comply with any provision of the Taxes Acts;
c
that any such failure is likely to have led or to lead to serious prejudice to the proper assessment or collection of tax; and
d
that the information which is likely to be contained in the documents to which the notice relates is not readily available from another source.
8B
A person to whom there is given a notice under subsection (8A) above may, by notice in writing given to the inspector within thirty days after the date of the notice under that subsection object to that notice on the ground that it would be onerous for him to comply with it; and if the matter is not resolved by agreement, it shall be referred to the Special Commissioners, who may confirm, vary or cancel that notice .]
F618C
In this section references to documents do not include—
a
personal records (as defined in section 12 of the Police and Criminal Evidence Act 1984), or
b
journalistic material (as defined in section 13 of that Act),
and references to particulars do not include particulars contained in such personal records or journalistic material.
8D
Subject to subsection (8C) above, references in this section to documents and particulars are to those specified or described in the notice in question; and—
a
the notice shall require documents to be delivered (or delivered or made available), or particulars to be furnished, within such time (which, except in the case of a notice under subsection (2) above, shall not be less than thirty days after the date of the notice) as may be specified in the notice; and
b
the person to whom they are delivered, made available or furnished may take copies of them or of extracts from them.]
F3988E
An inspector who gives a notice under subsection (1) or (3) above shall also give to—
a
the person to whom the notice applies (in the case of a notice under subsection (1) above), or
b
the taxpayer concerned (in the case of a notice under subsection (3) above),
a written summary of his reasons for applying for consent to the giving of the notice.
8F
Subsection (8E) above does not apply, in the case of a notice under subsection (3) above, if by virtue of section 20B(1B) a copy of that notice need not be given to the taxpayer.
8G
Subsection (8E) above does not require the disclosure of any information—
a
which would, or might, identify any person who has provided the inspector with any information which he took into account in deciding whether to apply for consent; or
b
if the Commissioner giving the required consent has given a direction that that information is not to be subject to the obligation imposed by that subsection.
8H
A General or Special Commissioner shall not give a direction under subsection (8G) above unless he is satisfied that the inspector has reasonable grounds for believing that disclosure of the information in question would prejudice the assessment or collection of tax.
9
To the extent specified in section 20B below, the above provisions are subject to the restrictions of that section.C23
20AF62 Power to call for papers of tax accountant.
1
Where after the passing of the Finance Act 1976X2 a person—
a
is convicted of an offence in relation to tax (whenever committed) by or before any court in the United Kingdom; or
b
has [F63a penalty imposed on ] him (whether before or after the passing of that Act) under section 99 of this Act,
and he has stood in relation to others as tax accountant, an inspector authorised by the Board for the purpose of this section may by notice in writing require the person to deliver to him such documents as are in his possession or power and as (in the inspector’s reasonable opinion) contain information relevant to any tax liability to which any client of his is or has been, or may be or have been, subject, or to the amount of any such liability.
F641A
The reference to documents in subsection (1) above does not include—
a
personal records (as defined in section 12 of the Police and Criminal Evidence Act 1984), or
b
journalistic material (as defined in section 13 of that Act).
1B
Subject to subsection (1A) above, the reference to documents in subsection (1) above is to those specified or described in the notice in question; and—
a
the notice shall require documents to be delivered within such time (which shall not be less than thirty days after the date of the notice) as may be specified in the notice; and
b
the inspector may take copies of them or of extracts from them.]
2
Subsection (1) above does not have effect in relation to a person convicted or penalised as there mentioned for so long as an appeal is pending against the conviction or [F65penalty]; and—
a
for this purpose an appeal is to be treated as pending (where one is competent but has not been brought) until the expiration of the time for bringing it or, in the case of a conviction in Scotland, until the expiration of 28 days from the date of conviction; and
b
references here to appeal include further appeal but, in relation to the [F65imposition] of a penalty, do not include appeal against the amount of the penalty.
3
A notice is not to be given to any person under this section unless with the consent of the appropriate judicial authority; and that authority is to give his consent only on being satisfied that in all the circumstances the inspector is justified in so proceeding.
4
5
To the extent specified in section 20B below, the above provisions are subject to the restrictions of that section.
20BF62 Restrictions on powers under ss.20 and 20A.
1
Before a notice is given to a person by an inspector under [F67section 20(1), (3) or (8A)], or under section 20A, the person must have been given a reasonable opportunity to deliver (or, in the case of section 20(3), to deliver or make available) the documents in question[F68, or to furnish the particulars in question]; and the inspector must not apply for consent under [F67section 20(7) or (8A)] or, as the case may be, section 20A(3), until the person has been given that opportunity.
F691A
Subject to subsection (1B) below, where a notice is given to any person under section 20(3) the inspector shall give a copy of the notice to the taxpayer to whom it relates.
1B
If, on an application by the inspector, a General or Special Commissioner so directs, a copy of a notice under section 20(3) need not be given to the taxpayer to whom it relates; but such a direction shall not be given unless the Commissioner is satisfied that the inspector has reasonable grounds for suspecting the taxpayer of fraud.
2
A notice under section 20(1) does not oblige a person to deliver documents [F69or furnish particulars] relating to the conduct of any pending appeal by him; a notice under section 20(3) [F70or (8A)] does not oblige a person to deliver or make available documents relating to the conduct of a pending appeal by the taxpayer; and a notice under section 20A does not oblige a person to deliver documents relating to the conduct of a pending appeal by the client.
“Appeal” means appeal relating to tax.
C243
An inspector cannot under section 20(1) or (3), or under section 20A(1), give notice to a barrister, advocate or solicitor, but the notice must in any such case be given (if at all) by the Board; and accordingly in relation to a barrister, advocate or solicitor for references in section 20(3) and (4) and section 20A to the inspector there are substituted references to the Board.
4
To comply with a notice under section 20(1) or section 20A(1), and as an alternative to delivering documents to comply with a notice under section 20(3), [F70or (8A)] copies of documents may be delivered instead of the originals; but—
a
the copies must be photographic or otherwise by way of facsimile; and
b
if so required by the inspector (or, as the case may be, the Board) in the case of any documents specified in the requirement, the originals must be made available for inspection by a named officer of the Board (failure to comply with this requirement counting as failure to comply with the notice).
5
A notice under section 20(3), [F71does not oblige a person] to deliver or make available any document the whole of which originates more than 6 years before the date of the notice.
6
But subsection (5) does not apply where the notice is so expressed as to exclude the restrictions of that subsection; and it can only be so expressed where—
a
the notice being given by an inspector with consent under section 20(7), the Commissioner giving consent has also given approval to the exclusion;
b
the notice being given by the Board, they have applied to a General or Special Commissioner for, and obtained, that approval.
For this purpose the Commissioner gives approval only if satisfied, on the inspector’s or the Board’s application, that there is reasonable ground for believing that tax has, or may have been, lost to the Crown owing to the fraud of the taxpayer.
7
A notice under section 20(3) in relation to a taxpayer who has died cannot be given F72... if more than 6 years have elapsed since the death.
8
A notice under section 20(3) [F70or (8A)] or section 20A(1) does not oblige a barrister, advocate or a solicitor to deliver or make available, without his client’s consent, any document with respect to which a claim to professional privilege could be maintained.
F739
Subject to subsections (11) and (12) below, a notice under section 20(3) or (8A)—
a
does not oblige a person who has been appointed as an auditor for the purposes of any enactment to deliver or make available documents which are his property and were created by him or on his behalf for or in connection with the performance of his functions under that enactment, and
b
does not oblige a tax adviser to deliver or make available documents which are his property and consist of relevant communications.
10
In subsection (9) above “relevant communications” means communications between the tax adviser and—
a
a person in relation to whose tax affairs he has been appointed, or
b
any other tax adviser of such a person,
the purpose of which is the giving or obtaining of advice about any of those tax affairs; and in subsection (9) above and this subsection “tax adviser” means a person appointed to give advice about the tax affairs of another person (whether appointed directly by that other person or by another tax adviser of his).
11
Subject to subsection (13) below, subsection (9) above shall not have effect in relation to any document which contains information explaining any information, return, accounts or other document which the person to whom the notice is given has, as tax accountant, assisted any client of his in preparing for, or delivering to, the inspector or the Board.
12
Subject to subsection (13) below, in the case of a notice under section 20(8A) subsection (9) above shall not have effect in relation to any document which contains information giving the identity or address of any taxpayer to whom the notice relates or of any person who has acted on behalf of any such person.
13
Subsection (9) above is not disapplied by subsection (11) or (12) above in the case of any document if—
a
the information within subsection (11) or (12) is contained in some other document, and
b
either—
i
that other document, or a copy of it, has been delivered to the inspector or the Board, or
ii
that other document has been inspected by an officer of the Board.
14
Where subsection (9) above is disapplied by subsection (11) or (12) above in the case of a document, the person to whom the notice is given either shall deliver the document to the inspector or make it available for inspection by an officer of the Board or shall—
a
deliver to the inspector (or, where subsection (3) above applies, the Board) a copy (which is photographic or otherwise by way of facsimile) of any parts of the document which contain the information within subsection (11) or (12), and
b
if so required by the inspector (or, as the case may be, the Board), make available for inspection by a named officer of the Board such parts of the document as contain that information;
and failure to comply with any requirement under paragraph (b) above shall constitute a failure to comply with the notice.
20BBF74 Falsification etc. of documents.
1
Subject to subsections (2) to (4) below, a person shall be guilty of an offence if he intentionally falsifies, conceals, destroys or otherwise disposes of, or causes or permits the falsification, concealment, destruction or disposal of, a document which—
a
he has been required by a notice under section 20 or 20A above, or
b
he has been given an opportunity in accordance with section 20B(1) above,
to deliver, or to deliver or make available for inspection.
2
A person does not commit an offence under subsection (1) above if he acts—
a
with the written permission of a General or Special Commissioner, the inspector or an officer of the Board,
b
after the document has been delivered or, in the case within section 20(3) or (8A) above, inspected, or
c
after a copy has been delivered in accordance with section 20B(4) or (14) above and the original has been inspected.
3
A person does not commit an offence under subsection (1)(a) above if he acts after the end of the period of two years beginning with the date on which the notice is given, unless before the end of that period the inspector or an officer of the Board has notified the person in writing that the notice has not been complied with to his satisfaction.
4
A person does not commit an offence under subsection (1)(b) above if he acts—
a
after the date of the period of six months beginning with the date on which an opportunity to deliver the document was given, or
b
after an application for consent to a notice being given in relation to the document has been refused.
5
A person guilty of an offence under subsection (1) above shall be liable—
a
on summary conviction, to a fine not exceeding the statutory maximum;
b
on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both.
20CF62 Entry with warrant to obtain documents.
1
If the appropriate judicial authority is satisfied on information on oath given by an officer of the Board that—
a
b
in applying under this section, the officer acts with the approval of the Board given in relation to the particular case,
the authority may issue a warrant in writing authorising an officer of the Board to enter the premises, if necessary by force, at any time within 14 days from the time of issue of the warrant, and search them.
F761A
Without prejudice to the generality of the concept of serious fraud—
a
any offence which involves fraud is for the purposes of this section an offence involving serious fraud if its commission had led, or is intended or likely to lead, either to substantial financial gain to any person or to serious prejudice to the proper assessment or collection of tax; and
b
an offence which, if considered alone, would not be regarded as involving serious fraud may nevertheless be so regarded if there is reasonable ground for suspecting that it forms part of a course of conduct which is, or but for its detection would be, likely to result in serious prejudice to the proper assessment or collection of tax.
1B
The powers conferred by a warrant under this section shall not be exercisable—
a
by more than such number of officers of the Board as may be specified in the warrant;
b
outside such times of day as may be so specified;
c
if the warrant so provides, otherwise than in the presence of a constable in uniform .
2
Section 4A of the Inland Revenue Regulation Act 1890 (Board’s functions to be exercisable by an officer acting under their authority) does not apply to the giving of Board approval under this section.
F773
An officer who enters the premises under the authority of a warrant under this section may—
a
take with him such other persons as appear to him to be necessary;
b
seize and remove any things whatsoever found there which he has reasonable cause to believe may be required as evidence for the purposes of proceedings in respect of such an offence as is mentioned in subsection (1) above; and
c
search or cause to be searched any person found on the premises whom he has reasonable cause to believe to be in possession of any such things;
but no person shall be searched except by a person of the same sex.
4
Nothing in subsection (3) above authorises the seizure and removal of documents in the possession of a barrister, advocate or solicitor with respect to which a claim to professional privilege could be maintained.
5
An officer of the Board seeking to exercise the powers conferred by a warrant under this section or, if there is more than one such officer, that one of them who is in charge of the search—
a
if the occupier of the premises concerned is present at the time the search is to begin, shall supply a copy of the warrant endorsed with his name to the occupier;
b
if at that time the occupier is not present but a person who appears to the officer to be in charge of the premises is present, shall supply such a copy to that person; and
c
if neither paragraph (a) nor paragraph (b) above applies, shall leave such a copy in a prominent place on the premises.
6
Where entry to premises has been made with a warrant under this section, and the officer making the entry has seized any things under the authority of the warrant, he shall endorse on or attach to the warrant a list of the things seized.
7
Subsections (10) to (12) of section 16 of the Police and Criminal Evidence Act 1984 (return, retention and inspection of warrants) apply to a warrant under this section (together with any list endorsed on or attached to it under subsection (6) above) as they apply to a warrant issued to a constable under any enactment.
8
Subsection (7) above extends to England and Wales only.
20CCF78 Procedure where documents etc. are removed.
1
An officer of the Board who removes anything in the exercise of the power conferred by section 20C above shall, if so requested by a person showing himself—
a
to be the occupier of premises from which it was removed, or
b
to have had custody or control of it immediately before the removal,
provide that person with a record of what he removed.
2
The officer of the Board shall provide the record within a reasonable time from the making of the request for it.
3
Where anything which has been removed by an officer of the Board as mentioned in subsection (1) above is of such a nature that a photograph or copy of it would be sufficient—
a
for use as evidence at a trial for an offence, or
b
for forensic examination or for investigation in connection with an offence,
it shall not be retained longer than is necessary to establish that fact and to obtain the photograph or copy.
4
Subject to subsection (8) below, if a request for permission to be granted access to anything which—
a
has been removed by an officer of the Board, and
b
is retained by the Board for the purpose of investigating an offence,
is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed or by someone acting on behalf of any such person, the officer shall allow the person who made the request access to it under the supervision of an officer of the Board.
5
Subject to subsection (8) below, if a request for a photograph or copy of any such thing is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of any such person, the officer shall—
a
allow the person who made the request access to it under the supervision of an officer of the Board for the purpose of photographing it or copying it, or
b
photograph or copy it, or cause it to be photographed or copied.
6
Where anything is photographed or copied under subsection (5)(b) above the photograph or copy shall be supplied to the person who made the request.
7
The photograph or copy shall be supplied within a reasonable time from the making of the request.
8
There is no duty under this section to grant access to, or to supply a photograph or copy of, anything if the officer in overall charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice—
a
that investigation;
b
the investigation of an offence other than the offence for the purposes of the investigation of which the thing was removed; or
c
any criminal proceedings which may be brought as a result of—
i
the investigation of which he is in charge, or
ii
any such investigation as is mentioned in paragraph (b) above.
9
Any reference in this section to the officer in overall charge of the investigation is a reference to the person whose name and address are endorsed on the warrant concerned as being the officer so in charge.
20DF62 Interpretation of ss.20 to 20C.
1
For the purposes of section 20A and 20C above, “the appropriate judicial authority” is—
a
in England and Wales, a Circuit judge;
b
in Scotland, a sheriff; and
c
in Northern Ireland, a county court judge.
2
For the purposes of sections 20 and 20A, a person stands in relation to another as tax accountant at any time when he assists the other in the preparation [F79or delivery of any information, return, accounts or other document which he knows will be, or is or are likely to be, used] for any purpose of tax; and his clients are all those to whom he stands or has stood in that relationship.
F803
Without prejudice to section 127 of the Finance Act 1988, in sections 20 to 20CC above “document” has, subject to sections 20(8C) and 20(1A), the same meaning as it has—
a
in relation to England and Wales, in Part I of the Civil Evidence Act 1968,
b
in relation to Scotland, in Part III of the Law reform (Miscellaneous Provisions) (Scotland) Act 1968, and
c
in relation to Northern Ireland, in Part I of the Civil Evidence Act (Northern Ireland) 1971.
C25C26C2721 Stock jobbers’ transactions.
1
The Board may exercise the powers conferred by this section as respects, and in connection with, any business which is, or has been, carried on by a [F81market maker] F82... whose liability to tax in respect of the business is determined on the footing that any excess of his payments in respect of interest on securities over his receipts in respect thereof, being payments made or receipts accrued in pursuance of a contract for the sale or purchase of the securities, is to be treated for all the purposes of the Income Tax Acts or the Corporation Tax Acts as an annual payment made by him C28.
2
With a view to obtaining information about transactions in the course of a business within subsection (1) above, the Board may serve on the [F81market maker] F82... by whom the business is or has been carried on a notice requiring him to make available within a time specified in the notice, for inspection by an inspector or other officer of the Board, all such books, accounts and other documents in his possession or power as may be specified or described in the notice, being books, accounts or other documents which in the opinion of the Board contain or may contain information directly or indirectly relating to any such transactions.
3
The Board may serve on any broker a notice requiring him to make available within a time specified in the notice, for inspection by an inspector or other officer of the Board, all such books, accounts or other documents in his possession or power as may be specified or described in the notice, being books, accounts or other documents which in the opinion of the Board contain or may contain information relating directly or indirectly to transactions in the course of a business within subsection (1) above.
4
The Board may by notice in writing require—
a
a person, other than a broker, who has directly or indirectly received from a [F83market maker] F84... any payment made by the [F83market maker] F84... in the course of a business within subsection (1) above, being a payment treated by the [F83market maker] F84... as made in respect of interest on securities, to state within a time specified in the notice whether the amount received is in whole or in part received on behalf of, or for payment on to, any other person and, if so, to furnish the name and address of that other person, or
b
a person who has directly or indirectly paid to a [F83market maker] F84... any sum constituting a receipt by him in the course of a business within subsection (1) above, being a receipt treated by the [F83market maker] F84... as accruing in respect of interest on securities, to state within a time specified in the notice whether the amount paid is in whole or in part received from, or paid on account of, any other person and, if so, to furnish the name and address of that other person.
5
If, for the purpose of obtaining(from any persons whether brokers or [F83market makers] or not) information directly or indirectly relating to any transactions in the course of a business within subsection (1) above, any person in whose name any securities are registered is so required by notice in writing by the Board, he shall state whether or not he is the beneficial owner of those securities, and, if not the beneficial owner of those securities or any of them, shall furnish the name and address of the person or persons on whose behalf the securities are registered in his name.
6
The Board may not exercise their powers under the preceding provisions of this section for the purpose of obtaining information relating to transactions in any year of assessment ending more than six years before the service of the notice.
7
In this section—
[F83“broker” in relation to securities, means a member of The Stock Exchange who carries on his business in the United Kingdom and is not a market maker in securities of the kind concerned;]
F84. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F85“market maker”, in relation to securities, means a person who—
a
holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell securities of the kind concerned at a price specified by him, and
b
is recognised as doing so by the Council of The Stock Exchange;]
“securities” includes shares and stock, and references to interest include references to dividends.
Surtax
22 Additional particulars for surtax.
The Board may F86. . . , by notice in writing require any individual to furnish to them within such time as they may prescribe, not being less than twenty-eight days, such particulars as to the several sources of his income and the amount arising from each source, and as to the nature and the amount of any deductions claimed to be allowed therefrom as they consider necessary.
23 Power to obtain copies of registers of securities.
1
The Board may cause to be served upon any body corporate a notice requiring them to deliver to the Board within a specified time, being not less than twenty-one days, a copy, certified by a duly authorised officer of such body, of the whole of, or any specified class of entries in, any register containing the names of the holders of any securities issued by them.
2
On delivery of the copy in accordance with the notice payment shall be made therefor at the rate of five shillings C29 in respect of each one hundred entries.
3
In this section “security” includes shares, stock, debentures and debenture stock, and “entry” means, in relation to any register, so much thereof as relates to the securities held by any one person.
24 Power to obtain information as to income from securities.
1
The Board may by notice in writing require—
a
any person, being a registered or inscribed holder of any United Kingdom securities, who, in any year of assessment, has received on behalf of any other person any income arising from any such securities, or
b
any person by or through whom, in any year of assessment, any income in respect of United Kingdom securities has been paid in any case where—
i
the registered or inscribed holder of the securities is not the person to whom the income was paid, or
ii
the securities are bearer securities,
to furnish them, within such time as may be specified in the notice (not being less than twenty-eight days) with particulars of the amounts so received or, as the case may be, paid in that year (other than amounts received or paid in that year on behalf of or to any one person which did not exceed in the aggregate the sum of £15), the securities to which those amounts respectively relate, and the names and addresses of the persons on whose behalf or to whom those amounts were respectively received or paid.
2
The Board may similarly require any person who acts or has acted, directly or indirectly, as an intermediary or as one of a series of intermediaries between any such person as is specified in subsection (1)(a) or (b) above and the person or persons beneficially entitled to the income in question to furnish such information as the Board may require for the purpose of enabling them to ascertain the names and addresses of the person or persons beneficially entitled to the income and the respective amounts to which those persons were beneficially entitled.
3
Nothing in this section shall impose on any bank the obligation to disclose any particulars relating to income from securities in cases where the person beneficially entitled to the income is not resident in the United Kingdom C30.
4
In this section—
“securities” includes shares, stocks, bonds, debentures and debenture stock, and
“United Kingdom securities” means any securities issued by or on behalf of Her Majesty’s Government in the United Kingdom or the Government of Northern Ireland and any securities of a body corporate incorporated in any part of the United Kingdom.
Chargeable gains
25 Issuing houses, stockbrokers, auctioneers, etc.
1
For the purpose of obtaining particulars of chargeable gains an inspector may by notice in writing require a return under any of the provisions of this section.
2
An issuing house or other person carrying on a business of effecting public issues of shares of securities in any company, or placings of shares or securities in any company, either on behalf of the company, or on behalf of holders of blocks of shares or securities which have not previously been the subject of a public issue or placing, may be required to make a return of all such public issues or placings effected by that person in the course of the business in the period specified in the notice requiring the return, giving particulars of the persons to or with whom the shares or securities are issued, allotted or placed, and the number or amount of the shares or securities so obtained by them respectively.
3
A person not carrying on such a business may be required to make a return as regards any such public issue or placing effected by that person and specified in the notice, giving particulars of the persons to or with whom the shares or securities are issued, allotted, or placed and the number or amount of the shares or securities so obtained by them respectively.
4
A member of a stock exchange in the United KingdomC31, other than a [F87market maker], may be required to make a return giving particulars of any transactions effected by him in the course of his business in the period specified in the notice requiring the return and giving particulars of—
a
the parties to the transactions,
b
the number or amount of the shares or securities dealt with in the respective transactions, and
c
the amount or value of the consideration.
5
A person (other than a member of a stock exchange in the United KingdomC31) who acts as an agent or broker in the United Kingdom in transactions in shares or securities may be required to make a return giving particulars of any such transactions effected by him after 5th April 1968 and in the period specified in the notice, and giving particulars of—
a
the parties to the transactions,
b
the number or amount of the shares or securities dealt with in the respective transactions, and
c
the amount or value of the consideration.
6
The committee or other person or body of persons responsible for managing a clearing house for any terminal market in commodities may be required to make a return giving particulars of any transactions effected through the clearing house in the period specified in the notice requiring the return and giving particulars of—
a
the parties to the transactions,
b
the amounts dealt with in those transactions respectively, and
c
the amount or value of the consideration.
7
An auctioneer, and any person carrying on a trade of dealing in any description of tangible movable property, or of acting as an agent or intermediary in dealings in any description of tangible movable property, may be required to make a return giving particulars of any transactions effected by or through him in which any asset which is tangible movable property is disposed of for a consideration the amount or value of which, in the hands of the recipient, exceeds [F88£6,000].
8
No person shall be required under this section to include in a return particulars of any transaction effected more than three years before the service of the notice requiring him to make the return.
9
In this section “company” and “shares” shall be construed in accordance with F89sections 99 and 288(1) of the 1992 Act.
F9010
In this section “market maker”, in relation to shares or securities, means a person who—
a
holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell shares or securities of the kind concerned at a price specified by him, and
b
is recognised as doing so by the Council of The Stock Exchange.
26 Nominee shareholders.
1
If, for the purpose of obtaining particulars of chargeable gains, any person in whose name any shares of a company are registered is so required by notice in writing by the Board or an inspector, he shall state whether or not he is the beneficial owner of those shares and, if not the beneficial owner of those shares or any of them, shall furnish the name and address of the person or persons on whose behalf the shares are registered in his name.
2
In this section references to shares include references to securities and loan capital.
27 Settled property.
1
2
In this section “settlement” has the meaning given by F537section 660G(1) and (2) of the principal Act.
F9328Non-resident companies and trusts.
1
A person holding shares or securities in a company which is not resident or ordinarily resident in the United Kingdom may be required by a notice by the Board to give such particulars as the Board may consider are required to determine whether the company falls within section 13 of the 1992 Act and whether any chargeable gains have accrued to that company in respect of which the person to whom the notice is given is liable to capital gains tax under that section.
2
For the purposes of this section “company” and “shares” shall be construed in accordance with sections 99 and 288(1) of the 1992 Act.
C73 PART IVC74 ASSESSMENT AND CLAIMS
Pt. 4 (ss. 29-43B) applied (with modifications) (6.4.1993) by The Income Tax (Sub-contractors in the Construction Industry) Regulations 1993 (S.I. 1993/743), reg. 14(2) (revoked (6.4.2007) by S.I. 2005/2045, Sch. 2)
See also Income and Corporation Taxes Act 1988 (c. 1), s. 252 (assessments to rectify excessive set-off etc. of advance corporation tax or tax credit)
28AF399Amendment of self-assessment where enquiries made.
1
This section applies where an officer of the Board gives notice under section 9A(1) or 11AB(1) of this Act to any person (the taxpayer) of his intention to enquire into—
a
the return on the basis of which the taxpayer’s self-assessment was made, or
b
any amendment of that return on the basis of which an amendment (the taxpayer’s amendment) of that assessment has been made by the taxpayer.
2
If, at any time before the officer’s enquiries are completed, the officer is of opinion that—
a
the tax contained in the taxpayer’s self-assessment is insufficient and, in a case falling within subsection (1)(b) above, the deficiency is attributable (wholly or partly) to the taxpayer’s amendment, and
b
unless the assessment is immediately so amended as to make good the deficiency or, as the case may be, so much of the deficiency as is so attributable, there is likely to be a loss of tax to the Crown,
he may by notice to the taxpayer amend the assessment accordingly.
3
At any time in the period of 30 days beginning with the day on which the officer’s enquiries are completed, the taxpayer may so amend his self-assessment—
a
as to make good any deficiency or eliminate any excess which, on the basis of the conclusions stated in the officer’s notice under subsection (5) below, is a deficiency or excess which could be made good or eliminated under subsection (4) below; or
b
in a case falling within subsection (1)(a) above where the return was made before the end of the period of twelve months beginning with the filing date, as to give effect to any amendments to the return which he has notified to the officer.
4
If, at any time in the period of 30 days beginning immediately after the period mentioned in subsection (3) above, the officer is of opinion that—
a
the tax contained in the taxpayer’s self-assessment is insufficient or excessive, and
b
in a case falling within subsection (1)(b) above, the deficiency or excess is attributable (wholly or partly) to the taxpayer’s amendment,
he may by notice to the taxpayer so amend the assessment as to make good or eliminate the deficiency or excess or, where paragraph (b) above applies, so much of the deficiency or excess as is so attributable.
5
Subject to subsection (6) below, the officer’s enquiries shall be treated as completed at such time as he by notice—
a
informs the taxpayer that he has completed his enquiries, and
b
states his conclusions as to the amount of tax which should be contained in the taxpayer’s self-assessment.
6
At any time before a notice is given under subsection (5) above the taxpayer may apply to the Commissioners for a direction that the officer shall give such a notice within such period as may be specified in the direction; and the Commissioners shall give such a direction unless they are satisfied that the officer has reasonable grounds for not giving such a notice.
7
Proceedings under subsection (6) above shall be heard and determined in the same way as an appeal.
8
In this section “filing date” means the day mentioned in section 8(1A), section 8A(1A) or, as the case may be, section 11(4) of this Act.
28BF400Amendment of partnership statement where enquiries made.
1
This section applies where an officer of the Board gives notice under section 12AC(1) of this Act to any person (the taxpayer) of his intention to enquire into—
a
the return on the basis of which the taxpayer’s partnership statement was made, or
b
any amendment of that return on the basis of which an amendment (the taxpayer’s amendment) of that statement has been made by the taxpayer.
2
At any time in the period of 30 days beginning with the day on which the officer’s enquiries are completed, the taxpayer may so amend his partnership statement—
a
as to make good any deficiency or eliminate any excess which, on the basis of the conclusions stated in the officer’s notice under subsection (5) below, is a deficiency or excess which could be made good or eliminated under subsection (3) below; or
b
in a case falling within subsection (1)(a) above where the return made before the end of the period of twelve months beginning with the filing date, as to give effect to any amendments to the return which he has notified to the officer.
3
If, at any time in the period of 30 days beginning immediately after the period mentioned in subsection (2) above, the officer is of opinion that—
a
any amount contained in the taxpayer’s partnership statement is insufficient or excessive, and
b
in a case falling within subsection (1)(b) above, the deficiency or excess is attributable (wholly or partly) to the taxpayer’s amendment,
he may by notice to the taxpayer so amend the statement as to make good or eliminate the deficiency or excess or, where paragraph (b) above applies, so much of the deficiency or excess as is so attributable.
4
Where a partnership statement is amended under this section, the officer shall by notice to each of the partners so amend his self-assessment under section 9 or 11AA of this Act as to give effect to the amendments of the partnership statement.
5
Subject to subsection (6) below, the officer’s enquiries shall be treated as completed at such time as he by notice—
a
informs the taxpayer that he has completed his enquiries, and
b
states his conclusions as to the amounts which should be contained in the taxpayer’s partnership statement.
6
Subsections (6) and (7) of section 28A of this Act apply for the purposes of subsection (5) above as they apply for the purposes of subsection (5) of that section.
7
In this section “filing date” means the day specified in the notice under subsection (2) or, as the case may be, subsection (3) of section 12AA of this Act.
8
Any reference in this section to the taxpayer includes a reference to any predecessor or successor of his.
28CF401Determination of tax where no return delivered.
1
Where—
a
a notice has been given to any person under section 8, 8A or 11 of this Act (the relevant section), and
b
the required return is not delivered on or before the filing date,
an officer of the Board may make a determination of the amounts in which, to the best of his information and belief, the person who should have made the return is chargeable to income tax and capital gains tax for the year of assessment or (as the case may be) is chargeable to corporation tax for the accounting period.
2
Notice of any determination under this section shall be served on the person in respect of whom it is made and shall state the date on which it is issued.
3
Until such time (if any) as it is superseded by a self-assessment made under section 9 or 11AA of this Act (whether by the taxpayer or an officer of the Board) on the basis of information contained in a return under the relevant section, a determination under this section shall have effect for the purposes of Parts VA, VI, IX and XI of this Act as if it were such a self-assessment.
4
Where—
a
an officer of the Board has commenced any proceedings for the recovery of any tax charged by a determination under this section; and
b
before those proceedings are concluded, the determination is superseded by such a self-assessment as is mentioned in subsection (3) above,
those proceedings may be continued as if they were proceedings for the recovery of so much of the tax charged by the self-assessment as is due and payable and has not been paid.
5
No determination under this section, and no self-assessment superseding such a determination, shall be made otherwise than—
a
before the end of the period of five years beginning with the filing date; or
b
in the case of such a self-assessment, before the end of the period of twelve months beginning with the date of the determination.
6
In this section “the filing date” means the day mentioned in section 8(1A), section 8A(1A) or, as the case may be, section 11(4) of this Act.
C33F40529 Assessment where loss of tax discovered.
1
If an officer of the Board or the Board discover, as regards any person (the taxpayer) and a chargeable period—
a
that any profits which ought to have been assessed to tax have not been assessed, or
b
that an assessment to tax is or has become insufficient, or
c
that any relief which has been given is or has become excessive,
the officer or, as the case may be, the Board may, subject to subsections (2) and (3) below, make an assessment in the amount, or the further amount, which ought in his or their opinion to be charged in order to make good to the Crown the loss of tax.
C2512
Where—
a
the taxpayer has made and delivered a return under section 8, 8A or 11 of this Act in respect of the relevant chargeable period, and
b
the situation mentioned in subsection (1) above is attributable to an error or mistake in the return as to the basis on which his liability ought to have been computed,
the taxpayer shall not be assessed under that subsection in respect of the chargeable period there mentioned if the return was in fact made on the basis or in accordance with the practice generally prevailing at the time when it was made.
C251C2543
Where the taxpayer has made and delivered a return under section 8, 8A or 11 of this Act in respect of the relevant chargeable period, he shall not be assessed under subsection (1) above—
a
in respect of the chargeable period mentioned in that subsection; and
b
in the case of a return under section 8 or 8A, in the same capacity as that in which he made and delivered the return,
unless one of the two conditions mentioned below is fulfilled.
4
The first condition is that the situation mentioned in subsection (1) above is attributable to fraudulent or negligent conduct on the part of the taxpayer or a person acting on his behalf.
5
The second condition is that at the time when an officer of the Board—
a
ceased to be entitled to give notice of his intention to enquire into the taxpayer’s return under section 8, 8A or 11 of this Act in respect of the relevant chargeable period; or
b
informed the taxpayer that he had completed his enquiries into that return,
the officer could not have been reasonably expected, on the basis of the information made available to him before that time, to be aware of the situation mentioned in subsection (1) above.
6
For the purposes of subsection (5) above, information is made available to an officer of the Board if—
a
it is contained in the taxpayer’s return under section 8, 8A or 11 of this Act in respect of the relevant chargeable period (the return), or in any accounts, statements or documents accompanying the return;
b
it is contained in any claim made as regards the relevant chargeable period by the taxpayer acting in the same capacity as that in which he made the return, or in any accounts, statements or documents accompanying any such claim;
c
it is contained in any documents, accounts or particulars which, for the purposes of any enquiries into the return or any such claim by an officer of the Board, are produced or furnished by the taxpayer to the officer, whether in pursuance of a notice under section 19A of this Act or otherwise; or
d
it is information the existence of which, and the relevance of which as regards the situation mentioned in subsection (1) above—
i
could reasonably be expected to be inferred by an officer of the Board from information falling within paragraphs (a) to (c) above; or
ii
are notified in writing by the taxpayer to an officer of the Board.
7
In subsection (6) above—
a
any reference to the taxpayer’s return under section 8, 8A or 11 of this Act in respect of the relevant chargeable period includes—
i
a reference to any return of his under that section for either of the two immediately preceding chargeable periods; and
ii
where the return is under section 8 and the taxpayer carries on a trade, profession or business in partnership, a reference to any return with respect to the partnership under section 12AA of this Act for the relevant chargeable period or either of those periods; and
b
any reference in paragraphs (b) to (d) to the taxpayer includes a reference to a person acting on his behalf.
8
An objection to the making of an assessment under this section on the ground that neither of the two conditions mentioned above is fulfilled shall not be made otherwise than on an appeal against the assessment.
9
Any reference in this section to the relevant chargeable period is a reference to—
a
in the case of the situation mentioned in paragraph (a) or (b) of subsection (1) above, the chargeable period mentioned in that subsection; and
b
in the case of the situation mentioned in paragraph (c) of that subsection, the chargeable period in respect of which the claim was made.
10
In this section “profits”—
a
in relation to income tax, means income,
b
in relation to capital gains tax, means chargeable gains, and
c
in relation to corporation tax, means profits as computed for the purposes of that tax.
C34C35C230C24230F98 Recovery of overpayment of tax, etc.
1
Where an amount of tax has been repaid to any person which ought not to have been repaid to him, that amount of tax may be assessed and recovered as if it were unpaid tax C36.
F941A
Subsection (1) above shall not apply where the amount of tax which has been repaid is assessable under section 29 of this Act.
F4061B
Subsections (2) to (8) of section 29 of this Act shall apply in relation to an assessment under subsection (1) above as they apply in relation to an assessment under subsection (1) of that section; and subsection (4) of that section as so applied shall have effect as if the reference to the loss of tax were a reference to the repayment of the amount of tax which ought not to have been repaid.
2
In any case where—
a
b
the whole or any part of that repayment has been paid to any person but ought not to have been paid to him; and
c
that repayment ought not to have been increased either at all or to any extent;
then the amount of the repayment assessed under subsection (1) above may include an amount equal to the amount by which the repayment ought not to have been increased.
F3472A
In any case where—
a
interest has been paid under section 826 of the principal Act on a repayment of tax, and
b
the whole or any part of that repayment has been paid to any person but ought not to have been paid to him, and
c
interest ought not to have been paid on that repayment, either at all or to any extent,
then the amount of the repayment assessed under subsection (1) above may include an amount equal to the interest that ought not to have been paid.
3
In any case where—
a
b
that payment ought not to have been increased either at all or to any extent;
then an amount equal to the amount by which the payment ought not to have been increased may be assessed and recovered as if it were unpaid income tax or corporation tax.
F3483A
If, in a case not falling within subsection (2A) above,—
a
interest has been paid under section 826 of the principal Act on a repayment of tax, and
b
that interest ought not to have been paid, either at all or to any extent,
then an amount equal to the interest that ought not to have been paid may be assessed and recovered as if it were unpaid corporation tax.
4
An assessment to income tax or corporation tax under this section shall be made under Case VI of Schedule D F349and an assessment to recover—
a
an amount of corporation tax repaid to a company in respect of an accounting period, or
b
an amount of income tax repaid to a company in respect of a payment received by the company in any accounting period, or
c
interest on any such repayment of tax,
shall be treated as an assessment to corporation tax for the accounting period referred to in paragraph (a) or (b) above, as the case may be, and the sum assessed shall carry interest at the prescribed rate for the purposes of section 87A of this Act from the date when the payment being recovered was made until payment.
F3504A
Where an assessment is made under this section to recover—
a
corporation tax repaid to a company in respect of an accounting period, or
b
income tax repaid to a company in respect of payments received by the company in an accounting period,
and more than one repayment of that tax has been made in respect of that period, any sum recovered in respect of income tax or corporation tax repaid shall as far as possible be treated as relating to a repayment of that tax made later rather than to a repayment made earlier.
F4075
An assessment under this section shall not be out of time under section 34 of this Act if it is made before the end of whichever of the following ends the later, namely—
a
the chargeable period following that in which the amount assessed was repaid or paid as the case may be, or
b
where a return delivered by the person concerned, or an amendment of such a return, is enquired into by an officer of the Board, the period ending with the day on which, by virtue of section 28A(5) of this Act, the officer’s enquiries are treated as completed.
6
Subsection (5) above is without prejudice to F97section 36 of this Act.
C377
In this section any reference to an amount repaid or paid includes a reference to an amount allowed by way of set-off.
30AF402Assessing procedure.
1
Except as otherwise provided, all assessments to tax which are not self-assessments shall be made by an officer of the Board.
2
All income tax which falls to be charged by an assessment which is not a self-assessment may, notwithstanding that it was chargeable under more than one Schedule, be included in one assessment.
3
Notice of any such assessment shall be served on the person assessed and shall state the date on which it is issued and the time within which any appeal against the assessment may be made.
4
After the notice of any such assessment has been served on the person assessed, the assessment shall not be altered except in accordance with the express provisions of the Taxes Acts.
5
Assessments to tax which under any provision in the Taxes Acts are to be made by the Board shall be made in accordance with this section.
30BF403Amendment of partnership statement where loss of tax discovered.
1
Where an officer of the Board or the Board discover, as regards a partnership statement made by any person (the representative partner) in respect of any period—
a
that any profits which ought to have been included in the statement have not been so included, or
b
that an amount of profits so included is or has become insufficient, or
c
that any relief F538or allowance claimed by the representative partner is or has become excessive,
the officer or, as the case may be, the Board may, subject to subsections (3) and (4) below, by notice to that partner so amend the statement as to make good the omission or deficiency or eliminate the excess.
2
Where a partnership statement is amended under subsection (1) above, the officer shall by notice to each of the relevant partners so amend their self-assessments under section 9 or 11AA of this Act as to give effect to the amendments of the partnership statement.
C2523
Where the situation mentioned in subsection (1) above is attributable to an error or mistake as to the basis on which the partnership statement ouade, no amendment shall be made under that subsection if that statement was in fact made on the basis or in accordance with the practice generally prevailing at the time when it was made.
C2524
No amendment shall be made under subsection (1) above unless one of the two conditions mentioned below is fulfilled.
5
The first condition is that the situation mentioned in subsection (1) above is attributable to fraudulent or negligent conduct on the part of—
a
the representative partner or a person acting on his behalf, or
b
a relevant partner or a person acting on behalf of such a partner.
6
The second condition is that at the time when an officer of the Board—
a
ceased to be entitled to give notice of his intention to enquire into the representative partner’s return under section 12AA of this Act; or
b
informed that partner that he had completed his enquiries into that return,
the officer could not have been reasonably expected, on the basis of the information made available to him before that time, to be aware of the situation mentioned in subsection (1) above.
7
Subsections (6) and (7) of section 29 of this Act apply for the purposes of subsection (6) above as they apply for the purposes of subsection (5) of that section; and those subsections as so applied shall have effect as if—
a
any reference to the taxpayer were a reference to the representative partner;
b
any reference to the taxpayer’s return under section 8, 8A or 11 were a reference to the representative partner’s return under section 12AA of this Act; and
c
sub-paragraph (ii) of paragraph (a) of subsection (7) were omitted.
8
An objection to the making of an amendment under subsection (1) above on the ground that neither of the two conditions mentioned above is fulfilled shall not be made otherwise than on an appeal against the amendment.
9
In this section—
“profits” has the same meaning as in section 29 of this Act;
“relevant partner” means a person who was a partner at any time during the period in respect of which the partnership statement was made.
10
Any reference in this section to the representative partner includes, unless the context otherwise requires, a reference to any successor of his.
C38C3931Right of appeal.
F4081
Subject to subsection (1A) below, an appeal may be brought against—
a
an amendment under section 28A(2) or (4) of this Act of a self-assessment, or
b
an amendment under section 28B(3) or 30B(1) of this Act of a partnership statement, or
c
an assessment to tax which is not a self-assessment,
by a notice of appeal in writing given within 30 days after the date on which the notice of amendment or assessment was issued.
1A
An appeal against an amendment under subsection (2) of section 28A of this Act of a self-assessment shall not be heard and determined before the officer who made the amendment gives notice under subsection (5) of that section that he has completed his enquiries.
2
The notice of appeal shall be given to the officer of the Board by whom the notice of amendment or assessment was given.
3
The appeal shall be to the Special Commissioners if—
a
the appeal involves any question of the application of any of F539sections 660A to 660G or 677 to 682A and 695 to 702 of the principal Act, or
b
in the case of an appeal against an assessment, the assessment was made by the Board.
F993A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Subject to subsection (3) above the appeal shall be to the General Commissioners, except that the appellant may elect (in accordance with section 46(1) of this Act) to bring the appeal before the Special Commissioners instead of the General Commissioners.
5
The notice of appeal against any assessment shall specify the grounds of appeal, but on the hearing of the appeal the Commissioners may allow the appellant to put forward any ground not specified in the notice, and take it into consideration if satisfied that the omission was not wilful or unreasonable.
F1005A
An election under subsection (4) above shall be disregarded if—
a
the appellant and the inspector or other officer of the Board agree in writing, at any time before the determination of the appeal, that it is to be disregarded; or
b
the General Commissioners have given a direction under subsection (5C) below and have not revoked it.
5B
At any time before the determination of an appeal in respect of which an election has been made under subsection (4) above, the inspector or other officer of the Board after giving notice to the appellant may refer the election to the General Commissioners.
5C
On any such reference the Commissioners shall, unless they are satisfied that the appellant has arguments to present or evidence to adduce on the merits of the appeal, direct that the election be disregarded.
5D
If, at any time after the giving of a direction under subsection (5C) above (but before the determination of the appeal) the General Commissioners are satisfied that the appellant has arguments to present or evidence to adduce on the merits of the appeal, they shall revoke the direction.
5E
Any decision to give a direction under subsection (5C) above or revoke such a direction under subsection (5D) above shall be final.] C40
6
This section has effect subject to any express provision in the Taxes Acts, including in particular any provision under which an appeal lies to the Special Commissioners to the exclusion of the General Commissioners, any provision transferring jurisdiction to some other tribunal, and any provision making one kind of assessment conclusive in an appeal against another kind of assessment. C41
Relief for excessive assessments
C24932 Double assessment.
1
If on a claim made to the Board it appears to their satisfaction that a person has been assessed to tax more than once for the same cause and for the same chargeable period F101... , they shall direct the whole, or such part of any assessment as appears to be an overcharge, to be vacated, and thereupon the same shall be vacated accordingly.
C422
An appeal on a claim under this section shall lie to any of the bodies of Commissioners having jurisdiction to hear an appeal against the assessment, or the later of the assessments, to which the claim relates.
C22433 Error or mistake.
C43C44C45C218C2391
If any person who has paid tax charged under an assessment F409(whether under section 9 or 11AA of this Act or otherwise) alleges that the assessment was excessive by reason of some error or mistake in a return, he may by notice in writing at any time not later than
F410a
in the case of an assessment to income tax or capital gains tax, five years after the 31st January next following the year of assessment to which the return relates; and
b
in the case of an assessment to corporation tax, six years after the end of the accounting period to which the return relates,
make a claim to the Board for relief C47.
2
F4112A
No relief shall be given under this section in respect of—
a
an error or mistake as to the basis on which the liability of the claimant ought to have been computed where the return was in fact made on the basis or in accordance with the practice generally prevailing at the time when it was made; or
b
an error or mistake in a claim which is included in the return.
C46C473
In determining the claim the Board shall have regard to all the relevant circumstances of the case, and in particular shall consider whether the granting of relief would result in the exclusion from charge to tax of any part of the profits of the claimant, and for this purpose the Board may take into consideration the liability of the claimant and assessments made on him in respect of chargeable periods other than that to which the claim relates.
C474
If any appeal is brought from the decision of the Board on the claim the Special Commissioners shall hear and determine the appeal in accordance with the principles to be followed by the Board in determining claims under this section; and neither the appellant nor the Board shall be entitled to F470appeal under section 56A of this Act against the determination of the Special Commissioners except on a point of law arising in connection with the computation of profits.
F1034A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
In this section“profits”—
a
in relation to income tax, means income,
b
in relation to capital gains tax, means chargeable gains,
c
in relation to corporation tax, means profits as computed for the purposes of that tax.
33AF404Error or mistake in partnership statement.
1
This section applies where, in the case of a trade, profession or business carried on by two or more persons in partnership, those persons allege that the tax charged by self-assessments of theirs under section 9 or 11AA of this Act was excessive by reason of some error or mistake in a partnership statement.
2
One of those persons (the representative partner) may, not later than five years after the filing date, by notice in writing make a claim to the Board for relief.
3
On receiving the claim the Board shall inquire into the matter and shall, subject to subsection (5) below, so amend the partnership statement so as to give such relief in respect of the error or mistake as is reasonable or just.
4
Where a partnership statement is amended under subsection (3) above, the Board shall by notice to each of the relevant partners so amend their self-assessments under section 9 or 11AA of this Act as to give effect to the amendment of the partnership statement.
5
No relief shall be given under this section in respect of an error or mistake as to the basis on which the liability of the partners ought to have been computed where the partnership statement was in fact made on the basis or in accordance with the practice generally prevailing at the time when it was made.
6
In determining the claim the Board—
a
shall have regard to all the relevant circumstances of the case, and
b
in particular shall consider whether the granting of relief would result in the exclusion from charge to tax of any part of the profits of any of the partners;
and for the purposes of this subsection the Board may take into consideration the liability of the partners and their self-assessments in respect of chargeable periods other than that to which the claim relates.
7
If any appeal is brought from the decision of the Board on the claim, the Special Commissioners shall hear and determine the appeal in accordance with the principles to be followed by the Board in determining claims under this section.
8
Neither the representative partner nor the Board shall be entitled to require a case to be stated under section 56 of this Act otherwise than on a point of law arising in connection with the computation of profits.
9
In this section—
“filing date” has the same meaning as in section 12AC of this Act;
“profits” has the same meaning as in section 33 of this Act;
“relevant partner” means a person who was a partner at any time during the period in respect of which the partnership statement was made.
10
Any reference in this section to the representative partner includes, unless the context otherwise requires, a reference to any successor of his.
Time limits
C4934Ordinary time limit of six years.
C54C50C53C51C52C220C215C236C2331
Subject to the following provisions of this Act, and to any other provisions of the Taxes Acts allowing a longer period in any particular class of case, an assessment to tax may be made at any time not later than
F413a
in the case of an assessment to income tax or capital gains tax, five years after the 31st January next following the year of assessment to which it relates; and
b
in the case of an assessment to corporation tax, six years after the end of the accounting period to which it relates.
2
An objection to the making of any assessment on the ground that the time limit for making it has expired shall only be made on an appeal against the assessment.
35 Emoluments received after year for which they are assessable.
1
Where income to which this section applies is received in a year of assessment subsequent to that for which it is assessable, assessments to income tax as respects that income may be made at any time within six years after the year of assessment in which it was received. C55
2
The income to which this section applies is any income which is chargeable to tax under Schedule E, but which is not taken into account in an assessment to income tax for the year of assessment in which it is received; and for the purposes of this section—
F104a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
any payment chargeable to tax by virtue of section [F105148] of the principal Act (payments on retirement or loss of office or employment) shall notwithstanding anything in subsection (4) of that section (notional date of payment) be treated as having been received at the time it was actually received.
C56C5736F106Fraudulent or negligent conduct.
C58C59C60C216C237C2341
An assessment on any person (in this section referred to as “the person in default”) for the purpose of making good to the Crown a loss of tax attributable to his fraudulent or negligent conduct or the fraudulent or negligent conduct of a person acting on his behalf may be made at any time not later than
F414a
in the case of an assessment to income tax or capital gains tax, twenty years after the 31st January next following the year of assessment to which it relates; and
b
in the case of an assessment to corporation tax, twenty-one years after the end of the accounting period to which it relates.
F4152
Where the person in default carried on a trade, profession or business with one or more other persons at any time in the period for which the assessment is made, an assessment in respect of the profits or gains of the trade, profession or business for the purpose mentioned in subsection (1) above may be made not only on the person in default but also on his partner or any of his partners.
3
If the person on whom the assessment is made so requires, in determining the amount of the tax to be charged for any chargeable period in any assessment made for the purpose mentioned in subsection (1) above, effect shall be given to any relief or allowance to which he would have been entitled for that chargeable period on a claim or application made within the time allowed by the Taxes Acts.
F1073A
In subsection (3) above, “claim or application” does not include an election under section 257BA of the principal Act (elections as to transfer of married couple’s allowance).
F1084
Any act or omission such as is mentioned in section 98B below on the part of a grouping (as defined in that section) or member of a grouping shall be deemed for the purposes of subsection (1) above to be the act or omission of each member of the grouping.C61
F35137 Neglect: income tax and capital gains tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37AF111Effect of assessment where allowances transferred.
Where an assessment is made on any person for the purpose of making good a loss of tax wholly or partly attributable to F109fraudulent or negligent conduct, the fact that the person’s F416liability to income tax or total income for any year of assessment is assessed as greater than it was previously taken to be shall not affect the validity of F417any income tax reduction or deduction from total income made in the case of that person’s spouse by virtue of section F110257BB, 257D or 265 of the principal Act; F418and the entitlement in that case of the first-mentioned person for the year in question to any income tax reduction or deduction from total income shall be treated as correspondingly reduced.
F35238 Modification of s.37 in relation to partnerships.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F35339 Neglect: corporation tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C6240 Assessment on personal representatives.
C63C64C217C235C2381
For the purpose of the charge of tax on the executors or administrators of a deceased person in respect of the income, or chargeable gains, which arose or accrued to him before his death, the time allowed by section 34, 35 or 36 above shall in no case extend beyond the end of F419the period of three years beginning with the 31st January next following the year of assessment in which the deceased diedC65.
C63C64C217C235C2382
F112... , for the purpose of making good to the Crown any loss of tax attributable to the F113fraudulent or negligent conduct of a person who has died, an assessment on his personal representatives to tax for any year of assessment ending not earlier than six years before his death may be made at any time before the end of F419the period of three years beginning with the 31st January next following the year of assessment in which he died.
3
F1154
Any act or omission such as is mentioned in section 98B below, on the part of a grouping (as defined in that section) or member of a grouping shall be deemed for the purposes of subsection (2) above to be the act or omission of each member of the grouping.
F1164
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1165
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F35441 Leave of General or Special Commissioners required for certain assessments.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F346Corporation tax determinations
Ss. 41A, 41B, 41C and cross-heading inserted (with effect in relation to accounting periods ending after the day appointed for the purposes of s. 10 of the Taxes Act 1988) by Finance Act 1990 (c. 29), s. 95 (with s. 96)
41ADetermination procedure
1
If an inspector is satisfied that a return under section 11 of this Act affords correct and complete information concerning an amount which is—
a
required to be given in the return, and
b
determinable under this section,
he shall determine the amount accordingly.
2
If an inspector is not satisfied that a return under section 11 of this Act affords correct and complete information concerning an amount which is—
a
required to be given in the return, and
b
determinable under this section,
he may determine the amount to the best of his judgment.
3
If a company is required to deliver a return under section 11 of this Act and fails to deliver the return within the time limited by that section, an inspector may determine any amount which is—
a
required to be given in the return, and
b
determinable under this section,
to the best of his judgment.
4
An amount shall be treated as determined under this section when the inspector gives notice in writing of the determination to the company which makes, or is required to make, the return.
5
After an amount has been determined under this section, the determination shall not be altered except in accordance with the express provisions of the Taxes Acts.
6
Section 31 of this Act (except subsection (3)) shall apply in relation to a determination under this section as it applies in relation to an assessment to tax.
7
A determination under this section which has become final shall be conclusive for the purposes of the Corporation Tax Acts, except sections 36(3), 41B and 43A of this Act.
8
The power conferred by subsection (2) or (3) above includes power to determine that an amount is nil.
9
In this section references to an amount which is determinable under this section are references to—
a
the amount of losses incurred in a trade in an accounting period, computed in accordance with section 393(7) of the principal Act; or
b
the amount for an accounting period which is available for surrender by way of group relief under section 403(3) (capital allowances), (4) (expenses of management) or (7) (charges on income) of the principal Act.
41BReduction of determination
1
Where an inspector discovers that an amount determined under section 41A of this Act is or has become excessive, he may issue a direction that the amount determined shall be reduced by an amount specified in the direction.
2
A direction under this section in relation to a determination shall be treated as issued when the inspector gives notice in writing of the direction to the company given notice of the determination under section 41A of this Act.
3
Section 31 of this Act (except subsection (3)) shall apply in relation to a direction under this section as it applies in relation to an assessment to tax.
4
Section 41A(7) of this Act shall not apply to a determination at any time when a direction under this section has been issued in relation to the determination and has not become final.
5
After a direction under this section has become final, the determination to which it relates shall have effect as if the amount determined were reduced by the amount specified in the direction.
6
The power conferred by subsection (1) above includes power to issue a direction which would have the effect of reducing the amount determined to nil.
7
In its application to a determination in relation to which a direction under this section has already been issued, subsection (1) above shall have effect with the insertion after the word “Act” of the words “, as reduced by the amount specified in any previous direction under this section in relation to the determination,”.
41CTime limits
1
A determination of an amount may be made under section 41A of this Act at any time not later than 6 years from the end of the period to which the amount relates.
2
Subject to subsection (3) below, a direction in relation to a determination may be issued under section 41B of this Act at any time not later than 6 years from the end of the period to which the determination relates.
3
A direction in relation to a determination may be issued under section 41B of this Act at any time not later than 20 years from the end of the period to which the determination relates if the excess by virtue of which the power conferred by that section is exercisable is attributable to the fraudulent or negligent conduct of—
a
the company given notice of the determination under section 41A of this Act, or
b
a person acting on its behalf.
Claims
F42042C225C228 Procedure for making claims etc.
1
Where any provision of the Taxes Acts provides for relief to be given, or any other thing to be done, on the making of a claim, this section shall, unless otherwise provided, have effect in relation to the claim.
F5401A
Subject to subsection (3) below, a claim for a relief, an allowance or a repayment of tax shall be for an amount which is quantified at the time when the claim is made.
2
Subject to F542subsections (3) and (3A) below, where notice has been given under section 8, 8A, 11 or 12AA of this Act, a claim shall not at any time be made otherwise than by being included in a return under that section if it could, at that or any subsequent time, be made by being so included.
3
F541Subsections (1A) and (2) above shall not apply in relation to any claim which falls to be taken into account in the making of deductions or repayments of tax under section 203 of the principal Act.
F5433A
Where a person makes a claim requiring relief for a loss incurred or treated as incurred, or a payment made, in one year of assessment (“the later year”) to be given in an earlier year of assessment (“the earlier year”)—
a
subsection (2) above shall not apply in relation to the claim;
b
the claim shall be made in relation to the later year;
c
the claim shall be for an amount equal to the difference between—
i
the amount in which he has been assessed to tax under section 9 of this Act for the earlier year; and
ii
the amount in which he would have been so assessed if the claim could have been, and had been, included in a return made under section 8 or 8A of this Act for that year; and
d
effect shall be given to the claim in relation to the later year, whether by repayment or set-off, or by an addition to the aggregate amount given by section 59B(1)(b) of this Act, or otherwise.
3B
Where no notice under section 8 or 8A of this Act has been given to the person for the earlier year, subsection (3A)(c) above shall have effect as if—
a
sub-paragraph (i) referred to the amount in which he would have been assessed to tax under section 9 of this Act for that year if such a notice had been so given; and
b
sub-paragraph (ii) referred to the amount in which he would have been so assessed if such a notice had been so given and the claim could have been, and had been, included in a return made under section 8 or 8A of this Act for that year.
4
F544Subject to subsection (4A) below, a claim made by a company for payment of a tax credit shall be made by being included in a return under section 11 of this Act.
F5454A
Subsection (4) above shall not apply where—
a
the company is wholly exempt from corporation tax or is only not so exempt in respect of trading income; and
b
the tax credit is not one in respect of which a payment on account may be claimed by the company under Schedule 19AB to the principal Act.
5
The references in F546this section to a claim being included in a return include references to a claim being so included by virtue of an amendment of the return; and the reference in subsection (4) above to a claim for payment includes a reference to a claim resulting in payment.
6
In the case of a trade, profession or business carried on by persons in partnership, a claim under any of the provisions mentioned in subsection (7) below shall be made—
a
where subsection (2) above applies, by being included in a return under section 12AA of this Act, and
b
in any other case, by such one of those persons as may be nominated by them for the purpose.
7
The provisions are—
a
F547sections 62A, 84, 91B, 101(2), 120(2), 401, 471, 472, 484, 504, 531, 534, 535, 537A, 538, 570, 571(4), 579(4), 723(3), 732(4), 810 of, and paragraphs 2, 6 and 11 of Schedule 5 to, the principal Act;
b
section 43(5) of the Finance Act 1989;
c
sections 1, 11, 17, 22, 23, 24, 25, 30, 31, 33, F55033A, 37, 48, 49, 53, 55, 68(5), 68(9), 77, 78, 124A, 129(2), 140(3), 141 and 158 of the Capital Allowances Act 1990; and
d
sections 41 and 42 of the Finance (No. 2) Act 1992.
8
A claim may be made on behalf of an incapacitated person by his trustee, guardian, tutor or curator; and a person who under Part VIII of this Act has been charged with tax on the profits of another person may make any such claim for relief by discharge or repayment of that tax.
9
Where a claim has been made (whether by being included in a return under section 8, 8A, 11 or 12AA of this Act or otherwise) and the claimant subsequently discovers that an error or mistake has been made in the claim, the claimant may make a supplementary claim within the time allowed for making the original claim.
10
This section F548(except subsection (1A) above) shall apply in relation to any elections and notices as it applies in relation to claims.
11
Schedule 1A to this Act shall apply as respects any claim, election or notice which—
a
is made otherwise than by being included in a return under section 8, 8A, 11 or 12AA of this Act, F549...
F549b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Schedule 2 to this Act shall have effect as respects the Commissioners to whom an appeal lies under Schedule 1A to this Act.
13
In this section “profits”—
a
in relation to income tax, means income,
b
in relation to capital gains tax, means chargeable gains, and
c
in relation to corporation tax, means profits as computed for the purposes of that tax.
C6743 Time limit for making claims.
C68C69C219C70C71C72C2401
Subject to any provision of the Taxes Acts prescribing a longer or shorter period , no claim for relief under the Taxes Acts shall be allowed unless it is made
F421a
in the case of a claim with respect to income tax or capital gains tax, within five years from the 31st January next following the year of assessment to which it relates; and
b
in the case of a claim with respect to corporation tax, within six years from the end of the accounting period to which it relates.
2
A claim (including a supplementary claim) which could not have been allowed but for the making of an assessment to income tax or capital gains tax after the year of assessment to which the claim relates may be made at any time before the end of the year of assessment following that in which the assessment was made.
F1173
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43AF120Further assessments: claims etc.
1
This section applies where—
a
b
the assessment is not made for the purpose of making good to the Crown any loss of tax attributable to his fraudulent or negligent conduct or the fraudulent or negligent conduct of a person acting on his behalf.
2
Without prejudice to section 43(2) above but subject to section 43B below, where this section applies—
a
any relevant claim, election, application or notice which could have been made or given within the time allowed by the Taxes Acts may be made or given at any time within one year from the end of the chargeable period in which the assessment is made, and
b
any relevant claim, election, application or notice previously made or given may at any such time be revoked or varied—
i
in the same manner as it was made or given, and
ii
by or with the consent of the same person or persons who made, gave or consented to it (or, in the case of any such person who has died, by or with the consent of his personal representatives),
except where by virtue of any enactment it is irrevocable.
F1192A
In subsection (2) above, “claim, election, application or notice” does not include an election under section 257BA of the principal Act (elections as to transfer of married couple’s allowance).
3
For the purposes of this section and section 43B below, a claim, election, application or notice is relevant in relation to an assessment for a chargeable period if—
a
it relates to that chargeable period or is made or given by reference to an event occurring in that chargeable period, and
b
it or, as the case may be, its revocation or variation has or could have the effect of reducing any of the liabilities mentioned in subsection (4) below.
4
The liabilities referred to in subsection (3) above are—
a
the increased liability to tax resulting from the assessment,
b
any other liability to tax of the person concerned for—
i
the chargeable period to which the assessment relates, or
ii
any chargeable period which follows that chargeable period and ends not later than one year after the end of the chargeable period in which the assessment was made.
5
Where a claim, election, application or notice is made given, revoked or varied by virtue of subsection (2) above, all such adjustments shall be made, whether by way of discharge or repayment of tax or the making of assessments or otherwise, as are required to take account of the effect of the taking of that action on any person’s liability to tax for any chargeable period.
6
The provisions of this Act relating to appeals against decisions on claims shall apply with any necessary modifications to a decision on the revocation or variation of a claim by virtue of subsection (2) above.
43BF121Limits on application of section 43A.
1
If the effect of the exercise by any person of a power conferred by section 43A(2) above—
a
to make or give a claim, election, application or notice, or
b
to revoke or vary a claim, election, application or notice previously made or given,
would be to alter the liability to tax of another person, that power may not be exercised except with the consent in writing of that other person, or where he has died, his personal representatives.
2
Where—
a
a power conferred by subsection (2) of section 43A above is exercised in consequence of an assessment made on a person, and
b
the exercise of the power increases the liability to tax of another person,
that section shall not apply by reason of any assessment made because of that increased liability.
3
In any case where—
a
one or more relevant claims, elections, applications or notices are made, given, revoked or varied by virtue of the application of section 43A above in the case of an assessment, and
b
the total of the reductions in liability to tax which, apart from this subsection, would result from the action mentioned in paragraph (a) above would exceed the additional liability to tax resulting from the assessment,
the excess shall not be available to reduce any liability to tax.
4
Where subsection (3) above has the effect of limiting either the reduction in a person’s liability to tax for more than one period or the reduction in the liability to tax of more than one person, the limited amount shall be apportioned between the periods or persons concerned—
a
except where paragraph (b) below applies, in such manner as may be specified by the inspector by notice in writing to the person or persons concerned, or
b
where the person concerned gives (or the persons concerned jointly give) notice in writing to the inspector within the relevant period, in such manner as may be specified in the notice given by the person or persons concerned.
5
For the purposes of paragraph (b) of subsection (4) above the relevant period is the period of 30 days beginning with the day on which a notice under paragraph (a) of that subsection is given to the person concerned or, where more than one person is concerned, the latest date on which such notice is given to any of them.
C103C104C105C106 PART VC107 APPEALS AND OTHER PROCEEDINGS
Pt. 5 applied (30.1.1992) by Income Tax (Building Societies) (Audit Powers) Regulations 1992 (S.I. 1992/10), reg. 10(3) (revoked (31.10.2008) by S.I. 2008/2682, Sch. 3)
Pt. 5 applied (30.1.1992) by The Income Tax (Deposit-takers) (Audit Powers) Regulations 1992 (S.I. 1992/12), reg. 10(3) (revoked (31.10.2008) by S.I. 2008/2682, Sch. 3)
Pt. 5 applied (with modifications) (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 15(3), 173(4), Sch. 2 para.8 (with s. 108(5))
Pt. 5 applied (with modifications) (6.4.1993) by The Income Tax (Sub-contractors in the Construction Industry) Regulations 1993 (S.I. 1993/743), reg. 14(2)(4) (revoked (6.4.2007) by S.I. 2005/2045, Sch. 2)
Pt. 5 applied (1.10.1993) by The Income Tax (Manufactured Overseas Dividends) Regulations 1993 (S.I. 1993/2004), reg. 11(10)
Pt. 5 applied by Income and Corporation Taxes Act 1988 (c. 1), s. 248(3)
Pt. 5 applied (1.10.1982) by The Income Tax (Interest Relief) Regulations 1982 (S.I. 1982/1236), reg. 14(5)
Pt. 5 applied (26.10.1987) by The Occupational Pension Schemes (Additional Voluntary Contributions) Regulations 1987 (S.I. 1987/1749), reg. 9(5)
Pt. 5 applied (29.10.1987) by The Personal Pension Schemes (Provisional Approval) Regulations 1987 (S.I. 1987/1765), reg. 6(4)
Pt. 5 applied (1.7.1988) by The Personal Pension Schemes (Relief at Source) Regulations 1988 (S.I. 1988/1013), reg. 11(5)
Pt. 5 applied (9.1.1990) by The Private Medical Insurance (Tax Relief) Regulations 1989 (S.I. 1989/2387), regs. 14, 17
Jurisdiction
44 General Commissioners.
1
Proceedings before the General Commissioners under the Taxes Acts shall, subject to the provisions of this section, be brought before the General Commissioners for the division in which the place given by the rules in Schedule 3 to this Act is situated.
F1221A
Subject to subsections (1B) and (2) below, the Board may direct that, notwithstanding the said rules, proceedings before the General Commissioners under the Taxes Acts of any description specified in the direction shall be brought before the General Commissioners for the division so specified in relation to proceedings of that description.
1B
A direction under subsection (1A) above shall have effect subject to the provisions referred to in the last paragraph of Schedule 3 to this Act and shall not apply to any proceedings if—
a
the inspector has not served on the other party a notice stating the effect of the direction in relation to those proceedings;
b
that party has served on the inspector, within thirty days of the service of the inspector’s notice, a notice objecting to the direction so applying; or
c
in the case of an appeal, that party has elected under rule 3 or 5 of the said rules for the place where he ordinarily resides.
C75F1232
Where—
a
the parties to any proceedings under the Taxes Acts which are to be heard by any General Commissioners have agreed, whether before or after the institution of the proceedings, that the proceedings shall be brought before the General Commissioners for a division specified in the agreement; and
b
in the case of an agreement made before the time of the institution of the proceedings, neither party has determined that agreement by a notice served on the other party before that time,
the proceedings shall be brought before the General Commissioners for the division so specified, notwithstanding the said rules and any direction under subsection (1A) above.
3
In any case in which proceedings under the Taxes Acts may be brought at the election of any person before the Special Commissioners instead of before the General Commissioners, the Commissioners before whom the proceedings are to be brought or have been brought may, if they think fit, on an application made by the parties, arrange with the other Commissioners concerned for the transfer of the proceedings to those other Commissioners; and the proceedings may be so transferred notwithstanding that the election has been exercised, or that the time for exercising the election has expired without its being exercised.
F1243A
Where in any case (including one in which proceedings may be brought as mentioned in subsection (3) above)—
a
an appeal has been brought before the General Commissioners: and
b
those Commissioners consider that, because of the complexity of the appeal or the length of time likely to be required for hearing it, the appeal should be brought before the Special Commissioners;
the General Commissioners may, with the agreement of the Special Commissioners, and having considered any representations made to them by the parties, arrange for the transfer of the proceedings to the Special Commissioners.
4
No determination of any Ge+neral Commissioners under the Taxes Acts shall be questioned, whether by a case stated under section 56 of this Act or otherwise, on the ground that this section did not authorise those General Commissioners to make the determination, except by a party by whom or on whose behalf an objection to the jurisdiction was made to those General Commissioners before or in the course of the proceedings leading to the determination.
C765
Anything to be done by the General Commissioners may, save as otherwise expressly provided by the Taxes Acts F471or by regulations under section 46A of this Act, be done by any two or more General Commissioners .
45 Quorum of Special Commissioners.
1
Anything to be done under any Act (including, except where otherwise expressly provided, any Act passed after this Act) by, to or before the Special Commissioners F125shall, except in any case where the Presiding Special Commissioner directs otherwise be done by, to or before a single Special Commissioner, F126... ; F472...
F4731A
Nothing in this section applies in relation to proceedings as defined in regulation 2 of the Special Commissioners Regulations but, subject to that, this section applies not only for the purposes of the Taxes Acts but also for the purposes of any other affairs under the care and management of the Board.
F1282
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Proceedings broughtF127, in accordance with a direction of the Presiding Special Commissioner before two or more Special Commissioners may be continued and determined by any one or more of them if the parties to the proceedings have given their consent, and if the continuing Special Commissioner or Commissioners, after such consultation as is practicable with any Special Commissioner retiring from the proceedings, is or are satisfied that to do so will avoid undue delay in the hearing of those or any other proceedings.
F1284
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1285
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1286
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46 General and Special Commissioners.
1
A right to elect to bring an appeal or other proceedings under the Taxes Acts before the Special Commissioners instead of before the General Commissioners shall be exercised by notice combined (in the case of an appeal) with the notice of appeal, or by a separate notice in writing to the inspector or other officer of the Board within the time limited for bringing the proceedings, and if no such notice of election is given the appeal or other proceedings shall be brought before the General Commissioners. C77
2
Save as otherwise provided in the Taxes Acts F474or in regulations under section 56B of this ActF423and in particular save as provided by section 29 of this Act, the determination of the General Commissioners or the Special Commissioners in any proceedings under the Taxes Acts shall be final and conclusive.
46AC78F129 Regulations about jurisdiction.
1
The Lord Chancellor may, with the consent of the Lord Advocate, make regulations—
a
providing for appeals or other proceedings under the Taxes Acts to be determined in certain circumstances by the Special Commissioners instead of the General Commissioners or by the General Commissioners instead of the Special Commissioners;
b
providing for appeals or other proceedings under the Taxes Acts that would otherwise be determined by the General Commissioners for one division to be determined in certain circumstances by the General Commissioners for another division;
c
as to the number of General Commissioners or Special Commissioners required or permitted to hear, or perform other functions in relation to, appeals or other proceedings under the Taxes Acts.
2
The regulations may—
a
make different provision for different cases or different circumstances, and
b
contain such supplementary, incidental, consequential and transitional provision as the Lord Chancellor thinks appropriate.
3
Provision made by virtue of subsection (1) or (2) above may include provision amending this or any other Act or any instrument made under an Act.
4
Regulations under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.
47 Special jurisdiction relating to tax on chargeable gains.
1
If and so far as the question in dispute on any appeal against an assessment to tax (whether capital gains tax or corporation tax) on chargeable gains, or against a decision on a claim under [F130the F1311992 Act] is a question of the value of any land, or of a lease of land then—
a
if the land is in England or Wales the question shall be determined on a reference to the Lands Tribunal, and
b
if the land is in Northern Ireland the question shall be determined on a reference to the Lands Tribunal for Northern Ireland.
2
In relation to land and leases of land in Scotland for any reference to the Lands Tribunal in subsection (1) above there shall be substituted a reference to the Lands Tribunal for Scotland:
F132. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
If and so far as any appeal mentioned in subsection(1) above involves the question of the value of any shares or securities in a company resident in the United Kingdom, other than shares or securities dealt in on a stock exchange in the United Kingdom, that question shall be determined [F133by the Special Commissioners], and those Commissioners shall hear and determine the question in the same way as an appeal.
F1344
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F13547A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47BF137Special jurisdiction relating to Business Expansion Scheme.
If and so far as the question in dispute on any appeal against the refusal of relief under F136Chapter III of Part VII of the principal Act (relief for investment in corporate trades), or against an assessment withdrawing any such relief, is a question of the value of an interest in land (within the meaning of F136Section 294(5) of that Act, it shall be determined—
a
if the land is in England and Wales, on a reference to the Lands Tribunal;
b
if the land is in Scotland, on a reference to the Lands Tribunal for Scotland; and
c
if the land is in Northern Ireland, on a reference to the Lands Tribunal for Northern Ireland.
Proceedings before Commissioners
C8048 Application to appeals and other proceedings.
C791
In the following provisions of this Part of this Act, unless the context otherwise requires—
“appeal” means any appeal to the General Commissioners or to the Special Commissioners under the Taxes Acts,
“the Commissioners” means the General Commissioners or the Special Commissioners as the case may be.
2
The following provisions of this Part of this Act shall apply in relation to—
a
appeals other than appeals against assessments, and
b
proceedings which under the Taxes Acts C79 are to be heard and determined in the same way as an appeal,
subject [F138to any necessary modifications, including (except in the case of applications under section 55 below) the omission of section 56(9) below].
49 Proceedings brought out of time.
1
An appeal may be brought out of time if on an application for the purpose an inspector or the Board is satisfied that there was a reasonable excuse for not bringing the appeal within the time limited, and that the application was made thereafter without unreasonable delay, and gives consent in writing; and the inspector or the Board, if not satisfied, shall refer the application for determination by the Commissioners C81.
2
If there is a right to elect to bring the appeal before the Special Commissioners instead of before the General Commissioners, the Commissioners to whom an application under this section is to be referred shall be the General Commissioners unless the election has been exercised before the application is so referred.
C83C83C84C8550 Procedure.
F4751
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4752
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4753
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4754
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F475C825
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4246
If, on an appeal, it appears to the majority of the Commissioners present at the hearing, by examination of the appellant on oath or affirmation, or by other F476... evidence—
a
that, by reason of an amendment under section 28A(2) or (4) of this Act, the appellant is overcharged by a self-assessment;
b
that, by reason of an amendment under section 28B(3) or 30B(1) of this Act, any amounts contained in a partnership statement are excessive; or
c
that the appellant is overcharged by an assessment other than a self-assessment,
the assessment or amounts shall be reduced accordingly, but otherwise the assessment or statement shall stand good.
7
If, on an appeal, it appears to the Commissioners—
a
that the appellant is undercharged to tax by a self-assessment which has been amended under section 28A(2) or (4) of this Act;
b
that any amounts contained in a partnership statement which has been amended under section 28B(3) or 30B(1) of this Act are insufficient; or
c
that the appellant is undercharged by an assessment other than a self-assessment,
the assessment or amounts shall be increased accordingly.
F1398
Where, on an appeal against an assessment F425(other than a self-assessment) which—
a
assesses an amount which is chargeable to tax, and
b
charges tax on the amount assessed,
it appears to the Commissioners as mentioned in subsection (6) or (7) above, they may, unless the circumstances of the case otherwise require, reduce or, as the case may be, increase only the amount assessed; and where any appeal is so determined the tax charged by the assessment shall be taken to have been reduced or increased accordingly.
F4269
Where any amounts contained in a partnership statement are reduced under subsection (6) above or increased under subsection (7) above, an officer of the Board shall by notice to the partners so amend their self-assessments under section 9 or 11AA of this Act as to give effect to the reductions or increases of those amounts.
F47751 Power of Commissioners to obtain information from appellant.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F47852 Evidence.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53F479Appeals against summary determination of penalties.
1
An appeal shall lie to the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland, against the summary determination by the Commissioners of any penalty pursuant to regulations under section 56B of this Act.
2
On any such appeal the court may either confirm or reverse the determination of the Commissioners or reduce or increase the sum determined.
54 Settling of appeals by agreement.
1
Subject to the provisions of this section, where a person gives notice of appeal and, before the appeal is determined by the Commissioners, the inspector or other proper officer of the Crown and the appellant come to an agreement, whether in writing or otherwise, that the assessment or decision under appeal should be treated as upheld without variation, or as varied in a particular manner or as discharged or cancelled, the like consequences shall ensue for all purposes as would have ensued if, at the time when the agreement was come to, the Commissioners had determined the appeal and had upheld the assessment or decision without variation, had varied it in that manner or had discharged or cancelled it, as the case may be.
2
Subsection (1) of this section shall not apply where, within thirty days from the date when the agreement was come to, the appellant gives notice in writing to the inspector or other proper officer of the Crown that he desires to repudiate or resile from the agreement.
3
Where an agreement is not in writing—
a
the preceeding provisions of this section shall not apply unless the fact that an agreement was come to, and the terms agreed, are confirmed by notice in writing given by the inspector or other proper officer of the Crown to the appellant or by the appellant to the inspector or other proper officer; and
b
the references in the said preceding provisions to the time when the agreement was come to shall be construed as references to the time of the giving of the said notice of confirmation.
4
Where—
a
a person who has given a notice of appeal notifies the inspector or other proper officer of the Crown, whether orally or in writing, that he desires not to proceed with the appeal; and
b
thirty days have elapsed since the giving of the notification without the inspector or other proper officer giving to the appellant notice in writing indicating that he is unwilling that the appeal should be treated as withdrawn,
the preceding provisions of this section shall have effect as if, at the date of the appellant’s notification, the appellant and the inspector or other proper officer had come to an agreement, orally or in writing, as the case may be, that the assessment or decision under appeal should be upheld without variation.
5
The references in this section to an agreement being come to with an appellant and the giving of notice or notification to or by an appellant include references to an agreement being come to with, and the giving of notice or notification to or by, a person acting on behalf of the appellant in relation to the appeal C86.
55C87C90F149 Recovery of tax not postponed.
F4271
This section applies to an appeal to the Commissioners against—
a
an amendment made under section 28A(2) or (4) of this Act of a self-assessment,
b
an assessment to tax made under section 29 of this Act,
c
an assessment to income tax made under Schedule 16 to the principal Act (income tax on company payments) other than an assessment charging tax the time for the payment of which is given by paragraph 4(1) or 9 of that Schedule, or
d
a notice under subsection (1) or (3) of section 753 of that Act where, before the appeal is determined, the appellant is assessed to tax under section 747(4)(a) of that Act by reference to an amount of chargeable profits specified in that notice.
2
C883
If the appellant has grounds for believing that he is overcharged to tax by the F428amendment or assessment, he may, by notice in writing given to the inspector within thirty days after the date of the issue of the notice of F428amendment or assessment, apply to the Commissioners for a determination of the amount of tax the payment of which should be postponed pending the determination of the appeal .
A notice of application under this subsection shall state the amount in which the appellant believes that he is overcharged to tax and his grounds for that belief.
C89F1423A
An application under subsection (3) above may be made more than thirty days after the date of the issue of the notice of F428amendment or assessment if there is a change in the circumstances of the case as a result of which the appellant has grounds for believing that he is over-charged to tax by the F428amendment or assessment.
C884
If, after any determination of the amount of tax the payment of which should be so postponed, there is a change in the circumstances of the case as a result of which either party has grounds for believing that the amount so determined has become excessive or, as the case may be, insufficient, he may, by notice in writing given to the other party at any time before the determination of the appeal, apply to the Commissioners for a further determination of that amount .
A notice of application under this subsection shall state the amount in which the applicant believes that the amount previously determined has become excessive or, as the case may be, insufficient and his grounds for that belief.
5
An application under subsection (3) or (4) above shall be heard and determined in the same way as the appeal; and where any such application is heard and determined by any Commissioners, that shall not preclude them from hearing and determining the appeal or any application or further application under subsection (4) above.
6
The amount of tax the payment of which shall be postponed pending the determination of the appeal shall be the amount (if any) in which it appears to the Commissioners, having regard to the representations made and any F480... evidence adduced, that there are reasonable grounds for believing that the appellant is overcharged to tax; and—
F143a
in the case of a determination made on an application under subsection (3) above, other than an application made by virtue of subsection (3A) above, the date on which any tax the payment of which is not so postponed is due and payable shall be determined as if the tax were charged by an F428amendment or assessment notice of which was issued on the date of that determination and against which there had been no appeal; and
b
in the case of a determination made on an application under subsection (4) above—
i
the date on which any tax the payment of which ceases to be so postponed is due and payable shall be determined as if the tax were charged by an F428amendment or assessment notice of which was issued on the date of that determination and against which there had been no appeal; and
ii
any tax overpaid shall be repaid.
F1446A
Where an appeal is brought against an F428amendment or assessment to tax under section 747(4)(a) of the principal Act as well as against a notice under section 753(1) or (3) of that Act—
a
an application under subsection (3) above may relate to matters arising on both appeals and, in determining the amount of tax the payment of which should be postponed, the Commissioners shall consider the matters so arising together, and
b
if the Commissioners have determined the amount of tax the payment of which should be postponed solely in relation to one of the appeals, the bringing of the other appeal shall be taken to be a change of circumstances falling within subsection (4) above; and
c
any reference in this section to the determination of the appeal shall be construed as a reference to the determination of the two appeals, but the determination of one before the other shall be taken to be a change of circumstances falling within subsection (4) above.
7
If the appellant and F145an inspector come to an agreement, whether in writing or otherwise, as to the amount of tax the payment of which should be postponed pending the determination of the appeal, the like consequences shall ensue as would have ensued if the Commissioners had made a determination to that effect under subsection (6) above on the date when the agreement was come to, but without prejudice to the making of a further agreement or of a further determination under that subsection.
8
Where an agreement is not in writing—
a
subsection (7) above shall not apply unless that fact that an agreement was come to, and the terms agreed, are confirmed by notice in writing given by the inspector to the appellant or by the appellant to the inspector, and
b
the reference in that subsection to the time when the agreement was come to shall be construed as a reference to the time of the giving of the notice of confirmation.
F1469
On the determination of the appeal—
a
the date on which any tax payable in accordance with that determination is due and payable shall, so far as it is tax the payment of which had been postponed, or which would not have been charged by the F428amendment or assessment if there had been no appeal, be determined as if the tax were charged by an F428amendment or assessment—
i
notice of which was issued on the date on which the inspector issues to the appellant a notice of the total amount payable in accordance with the determination, and
ii
against which there had been no appeal; and
b
any tax overpaid shall be repaid.
10
In F147subsection (3) above “inspector” means the inspector or other officer of the Board by whom the notice of F428amendment or assessment was issued; and references in this section to an agreement being come to with an appellant and the giving of notice to or by an appellant include references to an agreement being come to with, and the giving of notice to or by, a person acting on behalf of the appellant in relation to the appeal.
11
C91C92C9356 Statement of case for opinion of the High Court.
F4821
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4832
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
F4844
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4855
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
The High Court shall hear and determine any question or questions of law F487arising on a case stated and transmitted to the High Court under regulation 22 of the General Commissioners Regulations, and shall reverse, affirm or amend the determination in respect of which the case has been stated, or shall remit the matter to the Commissioners with the opinion of the Court thereon, or may make such other order in relation to the matter as to the Court may seem fit.
7
The High Court may cause the case to be sent back for amendment, and thereupon the case shall be amended accordingly, and judgment shall be delivered after it has been amended.
8
An appeal shall lie from the decision of the High Court to the Court of Appeal and thence to the House of Lords:
Provided that—
a
no appeal shall lie to the House of Lords from the Court of Appeal unless leave has been given under and in accordance with section 1 of the Administration of Justice (Appeals) Act 1934, and
C94b
this subsection has effect subject to Part II of the Administration of Justice Act 1969 (appeal from High Court to House of Lords).
9
F488Where a party to an appeal against an assessment has required a case to be stated under regulation 20(1) of the General Commissioners Regulations, then notwithstanding that the case has been required to be stated or is pending before the High Court, tax shall be paid in accordance with the determination of the Commissioners who have been required to state the case:
Provided that, if the F151amount charged by the assessment is altered by the order or judgment of the High Court, then—
C95a
if too much tax has been paid the amount overpaid shall be refunded with such interest, if any, as the High Court may allow ; or
F153b
if too little tax has been charged, the amount undercharged shall be due and payable at the expiration of a period of thirty days beginning with the date on which the inspector F152... issues to the other party a notice of the total amount payable in accordance with the order or judgment of that Court.
10
All matters within the jurisdiction of the High Court under this section shall be assigned in Scotland to the Court of Session sitting as the Court of Exchequer, and an appeal shall lie from the decision under this section of the Court of Session, as the Court of Exchequer in Scotland, to the House of Lords.
C9611
This section has effect in Northern Ireland subject to section 58 below.
56AF489Appeals from the Special Commissioners.
1
If, in the case of any appeal to the Special Commissioners, the appellant or the inspector or other officer of the Board is dissatisfied in point of law—
a
with a decision in principle given under regulation 18 of the Special Commissioners Regulations;
b
with the decision finally determining the appeal; or
c
with a decision under regulation 19 of those Regulations varying a decision such as is mentioned in paragraph (a) or (b) above or substituting for it a new decision,
he may appeal against that decision to the High Court.
2
A party to any appeal in England and Wales who under subsection (1) above has the right to appeal against any decision to the High Court may instead appeal directly to the Court of Appeal if—
a
all the parties to the appeal consent;
b
the Special Commissioners certify that the decision involves a point of law relating wholly or mainly to the construction of an enactment which was fully argued before them and fully considered by them; and
c
the leave of the Court of Appeal has been obtained.
3
Where a decision in principle or a decision finally determining an appeal is set aside or varied under regulation 19 of the Special Commissioners Regulations, an appeal against that decision under subsection (1) or (2) above that has not yet been determined shall be treated as withdrawn at the time the decision is set aside or varied.
4
The High Court or, as the case may be, the Court of Appeal shall hear and determine any question of law arising on an appeal under subsection (1) or (2) above and may reverse, affirm or vary the decision appealed against, or remit the matter to the Special Commissioners with the Court’s opinion on it, or make such other order in relation to the matter as the Court thinks fit.
5
Subject to subsection (7) below and to Part II of the Administration of Justice Act 1969 (appeal from High Court to House of Lords), an appeal shall lie to the Court of Appeal and thence to the House of Lords from the decision of the High Court on an appeal in England and Wales under subsection (1) above.
6
Subject to subsection (7) below, an appeal shall lie to the House of Lords from the decision of the Court of Appeal on an appeal under subsection (2) above.
7
An appeal shall not lie to the House of Lords from the Court of Appeal unless leave has been given under and in accordance with section 1 of the Administration of Justice (Appeals) Act 1934 .
8
Where the decision appealed against under subsection (1) or (2) above is a decision on an appeal against an assessment, then notwithstanding that the appeal under that subsection is pending, tax shall be paid in accordance with the determination of the Special Commissioners who made that decision.
9
If in such a case the amount charged by the assessment is altered by the order or judgment of the High Court or, as the case may be, the Court of Appeal, then—
a
if too much tax has been paid the amount overpaid shall be refunded with such interest, if any, as the High Court or, as the case may be, the Court of Appeal may allow; or
b
if too little tax has been charged, the amount undercharged shall be due and payable at the expiration of a period of thirty days beginning with the date on which the inspector issues to the other party a notice of the total amount payable in accordance with the order or judgment of the High Court or, as the case may be, the Court of Appeal.
10
All matters within the jurisdiction of the High Court under this section shall be assigned in Scotland to the Court of Session sitting as the Court of Exchequer (references in this section to the High Court being construed accordingly); and an appeal shall lie from the decision under this section of the Court of Session, as the Court of Exchequer in Scotland, to the House of Lords.
11
This section has effect in Northern Ireland subject to section 58 below.
56BC97F154 Regulations about practice and procedure.
1
The Lord Chancellor may, with the consent of the Lord Advocate, make regulations about the practice and procedure to be followed in connection with appeals.
2
The regulations may in particular include provision—
a
enabling the Commissioners to join as a party to an appeal a person who would not otherwise be a party;
b
for requiring any party to an appeal to provide information and make documents available for inspection by F429specified persons;
c
for requiring persons to attend the hearing of an appeal to give evidence and produce documents;
d
as to evidence generally in relation to appeals;
e
enabling the Commissioners to review their decisions;
f
for the imposition of penalties not exceeding an amount specified in the regulations;
g
for the determination and recovery of penalties (imposed by virtue of paragraph (f) above or any other enactment) and for appeals against penalties.
F4302A
In subsection (2)(b) above “specified persons” means such of the following as may be specified in the regulations—
a
the Commissioners;
b
any party to the appeal;
c
officers of the Board.
3
The regulations may also include provision—
a
authorising or requiring the Commissioners, in circumstances prescribed in the regulations, to state a case for the opinion of a court;
b
for an appeal to lie to a court on a question of law arising from a decision of the Commissioners;
c
as to the practice and procedure to be followed in connection with cases so stated or such appeals.
4
The regulations may—
a
make different provision for different cases or different circumstances, and
b
contain such supplementary, incidental, consequential and transitional provision as the Lord Chancellor thinks appropriate.
5
Provision made by virtue of any of subsections (1) to (4) above may include provision amending this or any other Act or any instrument made under an Act.
6
Regulations under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.
56CC98F154Power of Special Commissioners to order costs.
1
Regulations made under section 56B above may include provision for—
a
the award by the Special Commissioners of the costs of, or incidental to, appeal hearings before them,
b
the recovery of costs so awarded, and
c
appeals against such awards.
2
Any provision made by virtue of subsection (1)(a) above shall provide that the Special Commissioners shall not award costs against a party to an appeal unless they consider that he has acted wholly unreasonably in connection with the hearing in question.
56DC99F154Power of Special Commissioners to publish reports of decisions.
1
Regulations made under section 56B above may include provision for the Special Commissioners to publish reports of such of their decisions as they consider appropriate.
2
Any provision made by virtue of subsection (1) above shall provide that any report published, other than a report of an appeal that was heard in public, shall be in a form that so far as possible prevents the identification of any person whose affairs are dealt with in the report.
3
No obligation of secrecy to which the Special Commissioners are subject (by virtue of this Act or otherwise) shall prevent their publishing reports of their decisions in accordance with any provision made by virtue of subsection (1) above.
Chargeable gains
57 Regulations about appeals.
1
The Board may make regulations—
a
as respects the conduct of appeals against assessments and decisions on claims under the F1551992 Act,
b
entitling persons, in addition to those who would be so entitled apart from the regulations, to appear on such appeals,
c
regulating the time within which such appeals or claims may be brought or made,
C100d
where the market value of an asset on a particular date, or an apportionment or any other matter, may affect the liability to capital gains tax of two or more persons, enabling any such person to have the matter determined by the tribunal having jurisdiction to determine that matter if arising on an appeal against an assessment, and prescribing a procedure by which the matter is not determined differently on different occasions,
e
authorising an inspector or other officer of the Board, notwithstanding the obligation as to secrecy imposed by virtue of this or any other Act, to disclose to a person entitled to appear on such an appeal the market value of an asset as determined by an assessment or decision on a claim, or to disclose to a person whose liability to tax may be affected by the determination of the market value of an asset on a particular date, or an apportionment or any other matter, any decision on the matter made by an inspector or other officer of the Board.
F1562
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Regulations under this section may contain such supplemental and incidental provisions as appear to the Board to be expedient including in particular—
a
provisions as to the choice of the Commissioners, whether a body of General Commissioners or the Special Commissioners, to hear the appeal where, in addition to the appellant against an assessment, or the claimant in the case of an appeal against the decision on a claim, and in addition to the inspector or other officer of the Board, some other person is entitled to be a party to the appeal, and
b
provisions corresponding to F157section 151 of the Capital Allowances Act (procedure on apportionments where more than one body of General Commissioners has jurisdiction), and
c
provisions authorising the giving of conditional decisions where, under section 47 of this Act, F158. . . questions on an appeal against an assessment or a decision on a claim may go partly to one tribunal and partly to another.
4
Regulations under this section—
a
shall be made by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons, and
b
shall have effect notwithstanding anything in this Act.
F15957A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F16057B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northern Ireland
58 Proceedings in tax cases in Northern Ireland.
F1611
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F490C1012
A case which is stated by the General Commissioners under regulation 22 of the General Commissioners Regulations in proceedings in Northern Ireland shall be a case for the opinion of the Court of Appeal in Northern Ireland, and the Taxes Acts shall have effect as if section 56 of this Act applied in relation to such proceedings—
a
with the substitution for references to the High Court of references to the Court of Appeal in Northern Ireland, and
b
with the omission of subsection (8) of that section,
and the procedure relating to the hearing and determination of the case by the Court of Appeal in Northern Ireland shall be that for the time being in force in Northern Ireland as respects cases stated by a county court in the exercise of its general jurisdiction.
F4912A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4922B
The Taxes Acts shall have effect as if section 56A of this Act applied in relation to any appeal to the Special Commissioners constituting proceedings in Northern Ireland—
a
with the substitution for references to the High Court of references to the Court of Appeal in Northern Ireland, and
b
with the omission of subsections (2) and (5) to (7).
2C
An appeal shall lie to the House of Lords in accordance with section 42 of the Judicature (Northern Ireland) Act 1978 from a decision of the Court of Appeal in Northern Ireland on a case stated under regulation 22 of the General Commissioners Regulations or on an appeal under section 56A of this Act.
F1633
For the purposes of this section—
a
“proceedings in Northern Ireland” means proceedings as respects which the place given by the rules in Schedule 3 to this Act is in Northern Ireland;
b
proceedings under section 102, 113(5), 260(3), 281(4) 343(10) or 783(9) of the principal Act (or the corresponding enactments repealed by that Act), section 11 of or paragraph 22 of Schedule 7 to the Income and Corporation Taxes Act 1970 or [F162section 151 of the Capital Allowances Act 1990] (proceedings to which more than one taxpayer is a party) shall be proceedings in Northern Ireland if the place given by the rules in Schedule 3 to this Act in relation to each of the parties concerned in the proceedings is in Northern Ireland.
and sections 21 and 22 of the Interpretation Act (Northern Ireland) 1954 shall apply as if references in those provisions to any enactment included a reference to this section.
F164C1024
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F35559 Election for county court in Northern Ireland.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F431PART VA Payment of Tax
Pt. 5A inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 192 (with s. 198(1)); S.I. 1998/3173, art. 2
C24859A Payments on account of income tax.
1
F551Subject to subsection (9) below, this section applies to any person (the taxpayer) as regards a year of assessment if as regards the immediately preceding year—
a
he F552is assessed to income tax under section 9 of this Act in any amount, and
b
that amount (the assessed amount) exceeds the amount of any income tax which has been deducted at source, and
c
the amount of the excess (the relevant amount) is not less than such amount as may be prescribed by regulations made by the Board, and
d
the proportion which the relevant amount bears to the assessed amount is not less than such proportion as may be so prescribed.
2
Subject to subsection (3) below, the taxpayer shall make two payments on account of his liability to income tax for the year of assessment—
a
the first on or before the 31st January in that year, and
b
the second on or before the next following 31st July;
and, subject to F553subsections (4) and (4A) below, each of those payments on account shall be of an amount equal to 50 per cent. of the relevant amount.
3
If, at any time before the 31st January next following the year of assessment, the taxpayer makes a claim under this subsection stating—
a
his belief that he will not be assessed to income tax for that year, or that the amount in which he will be so assessed will not exceed the amount of income tax deducted at source, and
b
his grounds for that belief,
each of the payments on account shall not be, and shall be deemed never to have been, required to be made.
4
If, at any time before the 31st January next following the year of assessment, the taxpayer makes a claim under this subsection stating—
a
his belief that the amount in which he will be assessed to income tax for that year will exceed the amount of income tax deducted at source by a stated amount which is less than the relevant amount, and
b
his grounds for that belief,
the amount of each of the payments on account required to be made shall be, and shall be deemed always to have been, equal to 50 per cent. of the stated amount.
F5544A
If as regards the year immediately preceding the year of assessment—
a
the taxpayer is assessed to income tax under section 9 of this Act after the date on or before which either payment on account is required to be made, or
b
his assessment to income tax under that section is amended after that date,
then, subject to subsections (3) and (4) above and to any subsequent application of this subsection, the amount of the payment on account shall be, and shall be deemed always to have been, equal to 50 per cent. of the relevant amount as determined on the basis of the assessment or, as the case may be, the assessment as amended.
5
Where the taxpayer makes a claim under subsection (3) or (4) above F555or subsection (4A) above applies, there shall be made all such adjustments, whether by the repayment of amounts paid on accountF556, by the making of payments or further payments on account or otherwise, as may be required to give effect to the provisions of that subsection.
6
Where the taxpayer fraudulently or negligently makes any incorrect statement in connection with a claim under subsection (3) or (4) above, he shall be liable to a penalty not exceeding the difference between—
a
the amount which would have been payable on account if he had made a correct statement, and
b
the amount of the payment on account (if any) made by him.
7
The provisions of the Income Tax Acts as to the recovery of income tax shall apply to an amount falling to be paid on account of tax in the same manner as they apply to an amount of tax.
F5578
In this section, in relation to a year of assessment, any reference to the amount of any income tax deducted at source is a reference to the amount by which the aggregate of the following, namely—
a
any income tax deducted or treated as deducted from any income, or treated as paid on any income, in respect of the year, and
b
any amounts which, in respect of the year, are to be deducted at source under section 203 of the principal Act in subsequent years, or are tax credits to which section 231 of that Act applies,
exceeds the aggregate of any amounts which, in the year, are deducted at source under the said section 203 in respect of previous years.
9
If, at any time before the 31st January next following a year of assessment, an officer of the Board so directs—
a
this section shall not apply, and shall be deemed never to have applied, as regards that year to any person specified in the direction; and
b
there shall be made all such adjustments, whether by the repayment of amounts paid on account or otherwise, as may be required to give effect to the direction.
C25059BF432Payment of income tax and capital gains tax.
1
Subject to subsection (2) below, the difference between—
a
the amount of income tax and capital gains tax contained in a person’s self-assessment under section 9 of this Act for any year of assessment, and
b
the aggregate of any payments on account made by him in respect of that year (whether under section 59A of this Act or otherwise) and any income tax which in respect of that year has been deducted at source,
shall be payable by him or (as the case may be) repayable to him as mentioned in subsection (3) or (4) below.
2
The following, namely—
a
any amount which, in the year of assessment, is deducted at source under section 203 of the principal Act in respect of a previous year, and
b
any amount which, in respect of the year of assessment, is to be deducted at source under that section in a subsequent year, or is a tax credit to which section 231 of that Act applies,
shall be respectively deducted from and added to the aggregate mentioned in subsection (1)(b) above.
3
In a case where the person—
a
gave the notice required by section 7 of this Act within six months from the end of the year of assessment, but
b
was not given notice under section 8 or 8A of this Act until after the 31st October next following that year,
the difference shall be payable or repayable at the end of the period of three months beginning with the day on which the notice under section 8 or 8A was given.
4
In any other case, the difference shall be payable or repayable on or before the 31st January next following the year of assessment.
5
Where a person’s self-assessment under section 9 of this Act is amended under section 9(4), section 28A(2), (3) or (4) or section 30B(2) of this Act, any amount of tax which is payable or repayable by virtue of the amendment shall, subject to section 55(6) and (9) of this Act, be payable or (as the case may be) repayable—
a
in a case where notice of the amendment is given after, or less than 30 days before, the day given by subsection (3) or (4) above, on or before the day following the end of the period of 30 days beginning with the day on which notice is given; and
b
in any other case, on or before the day given by subsection (3) or (4) above.
6
Any amount of income tax or capital gains tax which is payable by virtue of an assessment made F558otherwise than under section 9 of this Act shall, unless otherwise provided, be payable on the day following the end of the period of 30 days beginning with the day on which the notice of assessment is given.
7
In this section any reference to income tax deducted at source is a reference to income tax deducted or treated as deducted from any income or treated as paid on any income.
C24559CF433Surcharges on unpaid income tax and capital gains tax.
1
This section applies in relation to any income tax or capital gains tax which has become payable by a person (the taxpayer) in accordance with section 55 or 59B of this Act.
2
Where any of the tax remains unpaid on the day following the expiry of 28 days from the due date, the taxpayer shall be liable to a surcharge equal to 5 per cent. of the unpaid tax.
3
Where any of the tax remains unpaid on the day following the expiry of 6 months from the due date, the taxpayer shall be liable to a further surcharge equal to 5 per cent. of the unpaid tax.
4
Where the taxpayer has incurred a penalty under section 7, 93(5)F559, 95 or 95A of this Act, no part of the tax by reference to which that penalty was determined shall be regarded as unpaid for the purposes of subsection (2) or (3) above.
5
An officer of the Board may impose a surcharge under subsection (2) or (3) above; and notice of the imposition of such a surcharge—
a
shall be served on the taxpayer, and
b
shall state the day on which it is issued and the time within which an appeal against the imposition of the surcharge may be brought.
6
A surcharge imposed under subsection (2) or (3) above shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the end of the period of 30 days beginning with the day on which the surcharge is imposed until payment.
7
An appeal may be brought against the imposition of a surcharge under subsection (2) or (3) above within the period of 30 days beginning with the date on which the surcharge is imposed.
8
Subject to subsection (9) below, the provisions of this Act relating to appeals shall have effect in relation to an appeal under subsection (7) above as they have effect in relation to an appeal against an assessment to tax.
9
On an appeal under subsection (7) above section 50(6) to (8) of this Act shall not apply but the Commissioners may—
a
if it appears to them that, throughout the period of default, the taxpayer had a reasonable excuse for not paying the tax, set aside the imposition of the surcharge; or
b
if it does not so appear to them, confirm the imposition of the surcharge.
10
Inability to pay the tax shall not be regarded as a reasonable excuse for the purposes of subsection (9) above.
11
The Board may in their discretion—
a
mitigate any surcharge under subsection (2) or (3) above, or
b
stay or compound any proceedings for the recovery of any such surcharge,
and may also, after judgment, further mitigate or entirely remit the surcharge.
12
In this section—
“the due date”, in relation to any tax, means the date on which the tax becomes due and payable;
“the period of default”, in relation to any tax which remained unpaid after the due date, means the period beginning with that date and ending with the day before that on which the tax was paid.
59DF434Payment of corporation tax.
1
Corporation tax for an accounting period shall be due and payable on the day following the expiry of nine months from the end of that period.
2
If, with respect to any accounting period—
a
a company has paid an amount of corporation tax; and
b
at any time before an assessment to corporation tax for the period becomes final, the company has grounds for believing that, by reason of a change in the circumstances of the case since the tax was paid, the amount paid exceeds the company’s probable liability for corporation tax,
the company may, by notice given to an officer of the Board on or after the date which, under section 826 of the principal Act, is the material date in relation to that tax, make a claim for the repayment to the company of the amount of that excess.
3
A notice under subsection (2) above shall state the amount which the company considers should be repaid and the grounds referred to in paragraph (b) of that subsection.
4
If, apart from this subsection, a claim would fall to be made under subsection (2) above at a time when—
a
the company has appealed against, or against an amendment of, such an assessment as is referred to in paragraph (b) of that subsection, but
b
that appeal has not been finally determined,
that subsection shall have effect as if, for the words from “make a claim” to “excess”, there were substituted the words “apply to the Commissioners to whom the appeal stands referred for a determination of the amount which should be repaid to the company pending a determination of the company”s liability for the accounting period in question’.
5
An application under subsections (2) and (4) above shall be determined in the same way as an appeal.
6
Where on an appeal against, or against an amendment of, an assessment to corporation tax a company makes an application under section 55(3) or (4) of this Act, that application may be combined with an application under subsections (2) and (4) above (relating to tax which was paid prior to the assessment).
59FBF591CT payment plans for tax on certain transactions with EEA residents
Schedule 3ZC makes provision enabling a company that is liable to pay corporation tax arising in connection with certain transactions to defer payment of the tax by entering into a CT payment plan.
C118PART VI COLLECTION AND RECOVERY C119
Pt. 6 applied (with modifications) by The Income Tax (Sub-contractors in the Construction Industry) Regulations 1993 (S.I. 1993/743), reg. 14(2) (revoked (6.4.2007) by S.I. 2005/2045, Sch. 2)
Pt. 6 applied by The Income Tax (Entertainers and Sportsmen) Regulations 1987 (S.I. 1987/530), reg. 11(3)
60C108C109 Issue of demand notes and receipts.
1
Every collector shall, when the tax becomes due and payable, make demand of the respective sums given to him in charge to collect, from the persons charged therewith, or at the places of their last abode, or on the premises in respect of which the tax is charged, as the case may require.
2
On payment of the tax, the collector shall if so requested give a receipt.
Distraint and poinding
61C110 Distraint by collectors.
1
If a person neglects or refuses to pay the sum charged, upon demand made by the collector, F165the collector may distrain upon the goods and chattels of the person charged (in this section referred to as “the person in default”.
2
For the purpose of levying any such distress, F166a justice of the peace, on being satisfied by information on oath that there is reasonable ground for believing that a person is neglecting or refusing to pay a sum charged, may issue a warrant in writing authorising a collector to break open, in the daytime, any house or premises, calling to his assistance any constable.
Every such constable shall, when so required, aid and assist the collector in the execution of the warrant and in levying the distress in the house or premises.
3
A levy or warrant to break open shall be executed by, or under the direction of, and in the presence of, the collector.
4
A distress levied by the collector shall be kept for five days, at the costs and charges of a person F167in default.
5
If the person F168in default does not pay the sum due, together with the costs and charges F169. . . , the distress shall be appraised by F170one or more independent persons appointed by the collector, and shall be sold by public auction by the collector for payment of the sum due and all costs and charges.
F171. . . Any overplus coming by the distress, after the deduction of the costs and charges and of the sum due, shall be restored to the owner of the goods distrained.
F1726
The Treasury may by regulations make provision with respect to—
a
the fees chargeable on or in connection with the levying of distress, and
b
the costs and charges recoverable where distress has been levied;
and any such regulations shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.
62 Priority of claim for tax.
1
F173If at any time at which any goods or chattels belonging to any person (in this section referred to as “the person in default”) are liable to be taken by virtue of any execution or other process, warrant, or authority whatever, or by virtue of any assignment, on any account or pretence whatever, except at the suit of the landlord for rent, F173the person in default is in arrears in respect of any such claims as are referred to in subsection (1A) below, the goods or chattels may not be so taken unless on demand made by the collector the person at whose suit the execution or seizure is made, or to whom the assignment was made, pays or causes to be paid to the collector, before the sale or removal of the goods or chattels, all F173such sums as have fallen due at or before the date of seizure.
F1741A
The sums referred to in subsection (1) above are—
a
sums due from the person in default on account of deductions of income tax from emoluments paid during the period of twelve months next before the date of seizure, being deductions which the person in default was liable to make under section 203 of the principal Act (pay as you earn) less the amount of the repayments of income tax which he was liable to make during that period; and
b
sums due from the person in default in respect of deductions required to be made by him for that period under section 559 of the principal Act (sub-contractors in the construction industry).
2
F175If the sums referred to in subsection (1) above are not paid within ten days of the date of the demand referred to in that subsection, the collector may distrain the goods and chattels notwithstanding the seizure or assignment, and F175may proceed to the sale thereof, as prescribed by this Act, for the purpose of obtaining payment of the whole of F175those sums, and the reasonable costs and charges attending such distress and sale, and every collector so doing shall be indemnified by virtue of this Act.
F1763
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63F179Recovery of tax in Scotland
P11
Subject to subsection (3) below, in Scotland, where any tax is due and has not been paid, the sheriff, on an application by the collector accompanied by a certificate by the collector—
a
stating that none of the persons specified in the application has paid the tax due by him;
b
stating that the collector has demanded payment under section 60 of this Act from each such person of the amount due by him;
c
stating that 14 days have elapsed since the date of such demand without payment of the said amount; and
d
specifying the amount due and unpaid by each such person,
shall grant a summary warrant in a form prescribed by Act of Sederunt authorising the recovery, by way of the diligences mentioned in subsection (2) below, of the amount remaining due and unpaid.
2
The diligences referred to in subsection (1) above are—
a
a poinding and sale in accordance with Schedule 5 to the Debtors (Scotland) Act 1987;
b
an earnings arrestment;
c
an arrestment and auction of furthcoming or sale.
3
Paragraph (c) of subsection (1) above shall not apply to an application under that subsection [F177insofar as it relates to sums due in respect of—
a
deductions of income tax which any person specified in the application was liable to make under section 203 of the principal Act (pay as you earn); or
b
deductions required to be made under section 559 of the principal Act (sub-contractors in the construction industry) by any person specified in the application.]
F1784
In this section references to amounts of tax due and references to sums due in respect of deductions include references to amounts which are deemed to be—
a
amounts of tax which the person is liable to pay by virtue of the Income Tax (Employments) Regulations 1973; or
b
amounts which the person is liable to pay by virtue of the Income Tax (Sub-Contractors in the Construction Industry) Regulations 1975.]
63AF179 Sheriff officer’s fees and outlays.
1
Subject to subsection (2) below and without prejudice to paragraphs 25 to 34 of Schedule 5 to the Debtors (Scotland) Act 1987 (expenses of poinding and sale), the sheriff officer’s fees, together with the outlays necessarily incurred by him, in connection with the execution of a summary warrant shall be chargeable against the debtor.
2
No fee shall be chargeable by the sheriff officer against the debtor for collecting, and accounting to the collector for, sums paid to him by the debtor in respect of the amount owing.
64Priority of claim for tax in Scotland.
1
F180If at any time at which any movable goods and effects belonging to any person (in this section referred to as “the person in default”) are liable to be taken by virtue of any poinding, sequestration for rent, or diligence whatever, or by any assignation, F181the person in default is in arrears in respect of any such sums as are referred to in subsection (1A) below, the goods and effects may not be so taken unless on demand made by the collector the person proceeding to take the said goods and effects pays F181such sums as have fallen due at or before the date of poinding or, as the case may be, other diligence or assignation.
F1821A
The sums referred to in subsection (1) above are—
a
sums due from the person in default on account of deductions of income tax from emoluments paid during the period of twelve months next before the date of poinding, being deductions which the person in default was liable to make under section 203 of the principal Act (pay as you earn) less the amount of the repayments of income tax which he was liable to make during that period; and
b
sums due from the person in default in respect of deductions required to be made by him for that period under section 559 of the principal Act (sub-contractors in the construction industry).
2
F183If the sums referred to in subsection (1) above are not paid within ten days of the date of the demand referred to in that subsection, the sums shall, notwithstanding any F183proceedings for the purpose of taking the said moveable goods and effects, be recoverable by poinding and selling the said moveable goods and effects under warrant obtained in conformity with the provisions contained in section 63 above.
F1843
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Court proceedings
P265 Magistrates’ courts.
1
Where F435the amount of—
a
any payment on account for the time being due and payable under section 59A of this Act, or
b
any income tax and capital gains tax for the time being due and payable under any assessment (whether under section 9 of this Act or otherwise),
does not exceed £2,000, the payment or tax shall, without prejudice to any other remedy, be recoverable summarily as a civil debt by proceedings commenced in the name of a collector.
2
All or any of the sums due in respect of tax from any one person and payable to any one collector (being sums which are by law recoverable summarily) may, whether or not they are due under one assessment, be included in the same complaint, summons, order, warrant or other document required by law to be laid before justices or to be issued by justices, and every such document as aforesaid shall, as respects each such sum, be construed as a separate document and its invalidity as respects any one such sum shall not affect its validity as respects any other such sum.
3
Proceedings under this section for the recovery of
F436a
any such payment as is mentioned in subsection (1)(a) above, or
b
any income tax for the time being due and payable under any assessment under section 9 of this Act,
may be brought in England and Wales at any time within one year from the time when the matter complained of arose.
4
It is hereby declared that in subsection (1) above the expression “recoverable summarily as a civil debt” in respect of proceedings in Northern Ireland means recoverable F185in proceedings under Article 62 of the Magistrates’ Courts (Northern Ireland) Order 1981.
P3F1865
The Treasury may by order made by statutory instrument increase the sums specified in sub-section (1) above; and any such statutory instrument shall be subject to annulment in pursuance of a resolution of the Commons House of Parliament.
C11166 County courts.
1
F187Tax due and payable under any assessment may, in England and Wales, and in Northern Ireland where the amount does not exceed the limit specified in Article 10(1) of the County Courts (Northern Ireland) Order 1980, without prejudice to any other remedy, be sued for and recovered from the person charged therewith as a debt due to the Crown by proceedings in a county court commenced in the name of a collector.
F1882
An officer of the Board who is authorised by the Board to do so may address the court in any proceedings under this section in a county court in England and Wales.
F1892A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1903
In this section as it applies in Northern Ireland the expression “county court” shall mean a county court held for a division under the County Courts (Northern Ireland) Order 1980.
C1124
Sections 21 and 42(2) of the Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this section, and Part III of the County Courts F191(Northern Ireland) Order 1980 (general civil jurisdiction) shall apply for the purposes of this section in Northern Ireland.
67 Inferior courts in Scotland.
1
F5611A
An officer of the Board who is authorised by the Board to do so may address the court in any proceedings under this section.
2
Sections 65 and 66 above shall not apply in Scotland.
68C113 High Court, etc.
1
Any tax may be sued for and recovered from the person charged therewith in the High Court as a debt due to the Crown, or by any other means whereby any debt of record or otherwise due to the Crown can, or may at any time, be sued for and recovered, as well as by the other means specially provided by this Act for levying the tax.
2
All matters within the jurisdiction of the High Court under this section shall be assigned in Scotland to the Court of Session sitting as the Court of Exchequer .
Supplemental
69C114C115C221 Interest on tax.
F437A penalty imposed under Part II, VA or X of this Act, a surcharge imposed under Part VA of this Act and interest charged under Part IX of this Act shall be treated for the purposes—
a
of sections 61, 63 and 65 to 68 above , and
b
of section 35(2)(g)(i) of the Crown Proceedings Act 1947 (rules of court to impose restrictions on set-off and counterclaim where the proceedings or set-off or counterclaim relate to taxes) and of any rules of court (including county court rules) for England and Wales or Northern Ireland, which impose such a restriction, and
c
of section 35(2)(b) of the said Act of 1947 as set out in section 50 of that Act (which imposes corresponding restrictions in Scotland),
70C116C116 Evidence.
1
Where tax is in arrear, a certificate of the inspector or any other officer of the Board that tax has been charged and is due, together with a certificate of the collector that payment of the tax has not been made to him, or, to the best of his knowledge and belief, to any other collector, or to any person acting on his behalf or on behalf of another collector, shall be sufficient evidence that the sum mentioned in the certificate is unpaid and is due to the Crown; and any document purporting to be such a certificate as is mentioned in this subsection shall be deemed to be such a certificate until the contrary is proved.
C1172
A certificate of a collector
F439a
that a penalty is payable under Part II, VA or X of this Act, that a surcharge is payable under Part VA of this Act or that interest is payable under Part IX of this Act, and
b
that payment of the penalty, surcharge or interest has not been made to him or, to the best of his knowledge and belief, to any other collector or to any person acting on his behalf or on behalf of another collector,
shall be sufficient evidence that the sum mentioned in the certificate is unpaid and is due to the Crown, and any document purporting to be such a certificate as is mentioned in this subsection shall be deemed to be such a certificate unless the contrary is proved.
F1933
F589A certificate of the inspector or any other officer of the Board that it has been determined that tax carries interest under section 88 of this Act, together with a certificate of the collector that payment of the interest has not been made to him, or, to the best of his knowledge and belief, to any other collector, or to any person acting on his behalf or on behalf of another collector, shall be sufficient evidence—
a
that interest is chargeable on the tax from the date when for the purposes of section 88 of this Act the tax ought to have been paid, and
b
that the sum mentioned in the certificate is unpaid and is due to the Crown;
and any document purporting to be such a certificate as is mentioned in this subsection shall be deemed to be such a certificate unless the contrary is proved.
4
A written statement as to the wages, salaries, fees, and other emoluments paid for any period to the person against whom proceedings are brought under section 65, 66 or 67 of this Act, purporting to be signed by his employer for that period or by any responsible person in the employment of the employer, shall in such proceedings be prima facie evidence that the wages, salaries, fees and other emoluments therein stated to have been paid to the person charged have in fact been so paid.
F3575
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70AF440Payments by cheque.
1
For the purposes of this Act and the provisions mentioned in subsection (2) below, where—
a
any payment to an officer of the Board or the Board is made by cheque, and
b
the cheque is paid on its first presentation to the banker on whom it is drawn,
the payment shall be treated as made on the day on which the cheque was received by the officer or the Board.
2
The provisions are—
a
sections 824 to 826 of the principal Act (repayment supplements and interest on tax overpaid); and
b
section 283 of the 1992 Act (repayment supplements).
PART VII PERSONS CHARGEABLE IN A REPRESENTATIVE CAPACITY, ETC.
Income Tax
71C120 Bodies of persons.
1
Subject to F194sections 6 to 12 and Parts VIII and XI of the principal Act (charge of corporation tax on companies), every body of persons shall be chargeable to income tax in like manner as any person is chargeable under the Income Tax Acts.
2
Subject to section 108 of this Act, the chamberlain or other officer acting as treasurer, auditor or receiver for the time being of any body of persons chargeable to income tax shall be answerable for doing all such acts as are required to be done under the Income Tax Acts for the purpose of the assessment of the body and for payment of the tax.
3
Every such officer as aforesaid may from time to time retain, out of any money coming into his hands on behalf of the body, so much thereof as is sufficient to pay the income tax charged upon the body, and shall be indemnified for all such payments made in pursuance of the Income Tax Acts .
C12172 Trustees, guardians, etc., of incapacitated persons.
1
The trustee, guardian, tutor, curator or committee of any incapacitated person having the direction, control or management of the property or concern of any such person, whether such person resides in the United Kingdom or not, shall be assessable and chargeable to income tax in like manner and to the like amount as that person would be assessed and charged if he were not an incapacitated person.
2
The person who is chargeable in respect of an incapacitated person shall be answerable for all matters required to be done under the Income Tax Acts for the purpose of assessment and payment of income tax.
3
Any person who has been charged under the Income Tax Acts in respect of any incapacitated person as aforesaid may retain, out of money coming into his hands on behalf of any such person, so much thereof from time to time as is sufficient to pay the tax charged, and shall be indemnified for all such payments made in pursuance of the Income Tax Acts.
73 Further provision as to infants.
If a person chargeable to income tax is an infant, then his F195parent , guardian or tutorF195parent or guardian—
a
shall be liable for the tax in default of payment by the infant, and
b
on neglect or refusal of payment, may be proceeded against in like manner as any other defaulter, and
c
if he makes such payment, shall be allowed all sums so paid in his accounts.
74C122C123 Personal representatives.
1
If a person chargeable to income tax dies, the executor or administrator of the person deceased shall be liable for the tax chargeable on such deceased person, and may deduct any payments made under this section out of the assets and effects of the person deceased .
2
On neglect or refusal of payment, any person liable under this section may be proceeded against in like manner as any other defaulter .
75C124 Receivers appointed by a court.
1
A receiver appointed by any court in the United Kingdom which has the direction and control of any property in respect of which income tax is charged in accordance with the provisions of the Income Tax Acts shall be assessable and chargeable with the tax in like manner and to the like amount as would be assessed and charged if the property were not under the direction and control of the court.
2
Every such receiver shall be answerable for doing all matters and things required to be done under the Income Tax Acts for the purpose of assessment and payment of income tax .
76 Protection for certain trustees, agents and receivers.
1
A trustee who has authorised the receipt of profits arising from trust property by, or by the agent of, the person entitled thereto shall not, if—
a
that person or agent actually received the profits under that authority, and
b
the trustee makes a return, as required by section 13 of this Act, of the name, address and profits of that person,
be required to do any other act for the purpose of the assessment of that person to income tax.
2
An agent or receiver of any person resident in the United Kingdom, other than an incapacitated person, shall not, if he makes a return, as required by section 13 of this Act, of the name, address and profits of that person, be required to do any other act for the purpose of the assessment of that person to income tax.
Capital gains tax
77 Application of Part VII to capital gains tax.
1
This Part of this Act (except section 76 above) shall apply in relation to capital gains tax as it applies in relation to income tax F196. . . , and subject to any necessary modifications.
2
This Part of this Act as applied by this section shall not affect the question of who is the person to whom chargeable gains accrue, or who is chargeable to capital gains tax, so far as that question is relevant for the purposes of any exemption, or of any provision determining the rate at which capital gains tax is chargeable.
F19777A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART VIII CHARGES ON NON-RESIDENTS
Income tax
F58778 Method of charging non-residents.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F58779 Profits from branch or agency.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F58780 Charge on percentage of turnover.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F58781 Taxation on basis of merchanting profit.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F58782 Savings.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F58783 Responsibilities and indemnification of persons in whose name a non-resident person is chargeable.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital gains tax
F58784 Gains from branch or agency.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporation tax
F58785 Application of Part VIII to corporation tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F19885A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C148 PART IXC149 INTEREST ON OVERDUE TAX
Pt. IX (ss. 86-92) applied (27.7.1993 with effect in relation to the year 1993-94 and subsequent years of assessment) by 1993 c. 34, s. 122(2)(3)
See—Finance Act 1984 (c. 43), Sch.14 para.6(4)—notwithstanding anything in Part IX payments of capital gains tax postponed under Finance Act 1984 Sch.14 not to carry interest for any period before tax becomes payable under Finance Act 1984 Sch.14 para.11; Finance Act 1989 (c. 26), s. 124, Sch. 14 para. 5—payment by installments of capital gains tax on gifts; S.I. 1987/530, reg. 11(3)—tax under assessments in relation to non-resident entertainers and sportsmen to be treated for the purposes of Part IX as income tax under Sch. D.
C125C126C127C22686F562 Interest on overdue income tax and capital gains tax.
1
The following, namely—
a
any amount on account of income tax which becomes due and payable in accordance with section 59A(2) of this Act, and
b
any income tax or capital gains tax which becomes due and payable in accordance with section 55 or 59B of this Act,
shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the relevant date until payment.
2
For the purposes of subsection (1)(a) above the relevant date is whichever of the dates mentioned in section 59A(2) of this Act is applicable; and for the purposes of subsection (1)(b) above the relevant date is—
a
in any such case as is mentioned in subsection (3) of section 59B of this Act, the last day of the period of three months mentioned in that subsection; and
b
in any other case, the date mentioned in subsection (4) of that section.
3
Subsection (1) above applies even if the relevant date is a non-business day within the meaning of section 93 of the Bills of Exchange Act 1882.
4
Subsection (5) below applies where as regards a year of assessment—
a
any person makes a claim under subsection (3) or (4) of section 59A of this Act in respect of the amounts (the section 59A amounts) payable by him in accordance with subsection (2) of that section, and
b
an amount (the section 59B amount) becomes payable by him in accordance with section 59B(3), (4) or (5) of this Act.
5
Interest shall be payable under this section as if each of the section 59A amounts had been equal to—
a
the aggregate of that amount and 50 per cent. of the section 59B amount, or
b
the amount which would have been payable in accordance with subsection (2) of section 59A of this Act if the claim under subsection (3) or (4) of that section had not been made,
whichever is the less.
6
In determining for the purposes of subsections (4) and (5) above what amount (if any) is payable by any person in accordance with section 59B(3), (4) or (5) of this Act—
a
it shall be assumed that both of the section 59A amounts have been paid, and
b
no account shall be taken of any amount which has been paid on account otherwise than under section 59A(2) of this Act or is payable by way of capital gains tax.
7
Subsection (8) below applies where as regards any person and a year of assessment—
a
amounts (the section 59A amounts) become payable by him in accordance with section 59A(2) of this Act, and
b
an amount (the section 59B amount) becomes repayable to him in accordance with section 59B (3), (4) or (5) of this Act.
8
So much of any interest payable under this section on either of the section 59A amounts as is not attributable to the amount by which that amount exceeds 50 per cent. of the section 59B amount shall be remitted.
9
In determining for the purposes of subsections (7) and (8) above what amount (if any) is repayable to any person in accordance with section 59B(3), (4) or (5) of this Act, no account shall be taken of any amount which has been paid on account otherwise than under section 59A(2) of this Act or is payable by way of capital gains tax.
F19986A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
87C129F203Interest on overdue advance corporation tax and income tax on company payments.
C1281
2
Where—
a
advance corporation tax paid in respect of distributions made in any return period is repaid under paragraph 4 of the said Schedule [F20013] in consequence of the receipt of franked investment income in a later return period; or
b
income tax paid in respect of payments made in any return period is repaid or discharged under paragraph 5 of the said Schedule [F20016] in consequence of the receipt in a later return period of a payment on which income tax is borne by deduction,
the repayment or discharge shall not affect interest under this section on the tax so repaid or discharged for such time as is specified in subsection (3) below but, subject to that, this section shall apply as if any such tax which is repaid or discharged had never become payable.
3
The time for which interest is not affected is—
a
any time before the expiration of fourteen days from the end of the later return period, unless the return for that period is made earlier in those fourteen days; and
b
if that return is made earlier in those fourteen days, any time ending before the date on which the return is made.
F2024
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Subsection (4) above shall have effect as if all advance corporation tax due from a company in accordance with paragraph 3(1) of the said Schedule [F20013] for any return period, whether or not it is actually assessed, were included in a single assessment, and similarly in the case of all income tax due from a company in accordance with paragraph 4(1) of the said Schedule [F20016] for any return period. F202
6
C1287
It is hereby declared that this section applies to advance corporation tax and income tax which, in accordance with either of those Schedules, is paid without the making of any assessment (but is paid after it is due), and that where the tax is charged by an assessment (whether or not any part of it has been paid when the assessment is made) this section applies as respects interest running before as well as after the making of the assessment.
C128C130F2048
Tax assessable as mentioned in subsection (1) above shall carry interest from the date when it becomes due and payable even if that date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.
C131C132C227C22987AF205Interest on overdue corporation tax etc.
1
2
Subsection (1) above applies even if the date when the tax becomes due and payable (as mentioned in that subsection) is a non-business day within the meaning of section 92 of the M3Bills of Exchange Act 1882.
3
In relation to corporation tax assessed by virtue of section F207346(2) or 347(1) of the principal Act, F208137(4), 139(7) or 179(11) of the 1992 Act or section 96(8) of the Finance Act 1990 (which enable unpaid corporation tax assessed on a company to be assessed on other persons in certain circumstances), the reference in subsection (1) above to the date when the tax becomes due and payable is a reference to the date when it became due and payable by the company.
4
a
there is in any accounting period of a company (in this subsection referred to as “the later period”) an amount of surplus advance corporation tax, as defined in subsection (3) of section F210239 of the principal Act, and
b
pursuant to a claim under the said subsection (3), the whole or any part of that amount is treated for the purposes of the said section F210239 as discharging liability for an amount of corporation tax for an earlier accounting period (in this subsection referred to as “the earlier period”), and
c
disregarding the effect of the said subsection (3), an amount of corporation tax for the earlier period would carry interest in accordance with this section,
then, in determining the amount of interest payable under this section on corporation tax unpaid for the earlier period, no account shall be taken of any reduction in the amount of that tax which results from the said subsection (3) except so far as concerns interest for any time after the date on which any corporation tax for the later period became due and payable (as mentioned in subsection (1) above).
F2114A
In a case where—
a
there is for an accounting period of a company (“the later period”) a relievable amount within the meaning of section 131 of the Finance Act 1993 (non-trading exchange gains and losses),
b
as a result of a claim under subsection (5) or (6) of that section the whole or part of the relievable amount for the later period is set off against the exchange profits (as defined in subsection (10) of that section) of an earlier accounting period (“the earlier period”), and
F499c
if the claim had not been made, there would be an amount or, as the case may be, an additional amount of corporation tax for the earlier period which would carry interest in accordance with this section,
F500then, for the purposes of the determination at any time of whether any interest is payable under this section or of the amount of interest so payable, the amount mentioned in paragraph (c) above shall be taken to be an amount of unpaid corporation tax for the earlier period except so far as concerns interest for any time after the date on which any corporation tax for the later period became (or, as the case may be, would have become) due and payable as mentioned in subsection (1) above.
F5024B
Where, in a case falling within subsection (4A)(a) and (b) above—
a
there is in the earlier period, as a result of the claim under section 131(5) or (6) of the Finance Act 1993, an amount of surplus advance corporation tax, as defined in section 239(3) of the principal Act, and
b
pursuant to a claim under the said section 239(3), the whole or any part of that amount is to be treated for the purposes of section 239 of the principal Act as discharging liability for an amount of corporation tax for an accounting period before the earlier period,
the claim under the said section 239(3) shall be disregarded for the purposes of subsection (4A) above but subsection (4) above shall have effect in relation to that claim as if the reference in the words after paragraph (c) to the later period within the meaning of subsection (4) above were a reference to the period which, in relation to the claim under section 131(5) or (6) of the Finance Act 1993, would be the later period for the purposes of subsection (4A) above.
5
A sum assessed on a company by such an assessment as is referred to in F212section 252(5) of the principal Act (recovery of payment of tax credit or interest on such a payment) shall carry interest at the F213rate applicable under section 178 of the Finance Act 1989 from the date when the payment of tax credit or interest was made until the sum assessed is paid.
F2146
In any case where—
a
on a claim under section 393A(1) of the principal Act, the whole or any part of a loss incurred in an accounting period (“the later period”) has been set off for the purposes of corporation tax against profits of a preceding accounting period (“the earlier period”);
b
the earlier period does not fall wholly within the period of twelve months immediately preceding the later period; and
c
if the claim had not been made, there would be an amount or, as the case may be, an additional amount of corporation tax for the earlier period which would carry interest in accordance with this section,
then, for the purposes of the determination at any time of whether any interest is payable under this section or of the amount of interest so payable, the amount mentioned in paragraph (c) above shall be taken to be an amount of unpaid corporation tax for the earlier period except so far as concerns interest for any time after the date on which any corporation tax for the later period became (or, as the case may be, would have become) due and payable as mentioned in subsection (1) above.
7
Where, in a case falling within subsection (6)(a) and (b) above—
a
there is in the earlier period, as a result of the claim under section 393A(1) of the principal Act, an amount of surplus advance corporation tax, as defined in subsection (3) of section 239 of that Act; and
b
pursuant to a claim under the said subsection (3), the whole or any part of that amount is to be treated for the purposes of the said section 239 as discharging liability for an amount of corporation tax for an accounting period before the earlier period,
the claim under the said subsection (3) shall be disregarded for the purposes of subsection (6) above but subsection (4) above shall have effect in relation to that claim as if the reference in the words after paragraph (c) to the later period within the meaning of subsection (4) above were a reference to the period which, in relation to the claim under the said section 393A(1), would be the later period for the purposes of subsection (6) above.
C133C24388 Interest on tax recovered to make good loss due to taxpayer’s fault.
C134C135C1361
Where an assessment has been made for the purpose of making good to the Crown a loss of tax wholly or partly attributable to
a
a failure to give a notice, make a return or produce or furnish a document or other information required by or under the Taxes Acts, or
b
an error in any information, return, accounts or other document delivered to an inspector or other officer of the Board F215,]
the tax charged by the assessment, or as the case may be such part thereof as corresponds to the part so attributable, [shall, if an inspector or the Board so determine, carry F216] interest at the [rate applicable under section 178 of the Finance Act 1989 F217] from the date on which the tax ought to have been paid until payment C137.
M42
3
Where it is finally determined that any tax carries interest under this section, the tax shall carry no interest under section 86 or 86A above, (and, accordingly, any interest under either of those sections which has been paid before the final determination shall be set off against the amount of the interest under this section); and for the purposes of this subsection a determination that tax carries interest is not final until it can no longer be varied, whether by any Commissioners on appeal or by the order of any court F219.]
M5C134C135C1364
The Board may at their discretion mitigate (whether before or after judgment) any interest due under this section and may stay or compound any proceedings for the recovery thereof.
M65
For the purposes of this section thedate when tax ought to have been paid shall be taken to be—
C134C135C136a
in the case of income tax, 1st January in the year of assessment for which the tax is charged, but subject to paragraphs (b) and (c) below,
C134C135C136b
in the case of one-half of any income tax specified in section [5(2) F220] of the principal Act, the following 1st July,
c
M7d
in the case of capital gains tax, [1st December F221] in the year of assessment next following the year for which the tax is charged,
M8e
f
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F225
6
Tax charged by an assessment mentioned in subsection (1) above shall carry interest from the date when it ought to have been paid even if that date was a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882 F226.]
7
In paragraph (a) of subsection (1) above the reference to a failure to do something includes, in relation to anything required to be done at a particular time or within a particular period, a reference to a failure to do it at that time or within that period; and, accordingly, section 118(2) of this Act shall not apply for the purposes of that paragraph F227.] C140
88AF228 Determinations under section 88.
1
Notice of a determination under section 88 above shall be served on the person liable to pay the interest to which it relates and shall specify—
a
the date on which it is issued,
b
the amount of the tax which carries interest and the assessment by which that tax was charged,
c
the date when for the purposes of section 88 above that tax ought to have been paid, and
d
the time within which an appeal against the determination may be made.
2
After the notice of a determination under section 88 above has been served the determination shall not be altered except in accordance with this section.
3
A determination under section 88 above may be made at any time—
a
within six years after the end of the chargeable period for which the tax carrying the interest is charged (or, in the case of development land tax, of the financial year in which the liability for that tax arose), or
b
within three years after the date of the final determination of the amount of that tax.
4
An appeal may be brought against a determination under section 88 above and, subject to the following provisions of this section, the provisions of this Act relating to appeals shall have effect in relation to an appeal against such a determination as they have effect in relation to an appeal against an assessment to tax.
5
On an appeal against a determination under section 88 above section 50(6) to (8) of this Act shall not apply but the Commisioners may—
a
if it appears to them that the tax carries no interest under that section, set the determination aside,
b
if the determination appears to them to be correct, confirm the determination, or
c
if the determination appears to them to be incorrect as to the amount of tax or the date on which the tax ought to have been paid, revise the determination accordingly.
F35889 The prescribed rate of interest.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C14190 Disallowance of relief for interest on tax.
91 Effect on interest of reliefs.
1
Where any amount of interest is payable under section 86 or section 88 of this Act in relation to an assessment, and relief from tax charged by the assessment is given to any person by a discharge of any of that tax, such adjustment shall be made of the said amount, and such repayment shall be made of any amounts previously paid under those provisions in relation to the assessment, as are necessary to secure that the total sum, if any, paid or payable under those provisions in relation to the assessment is the same as it would have been if the tax discharged had never been charged.
F2291A
Where interest is payable under section 87A of this Act in respect of an amount of corporation tax for an accounting period, and relief from tax is given by a discharge of any of that corporation tax—
a
such adjustment shall be made of the amount of interest payable under that section in respect of corporation tax for that accounting period, and
b
such repayment shall be made of any amounts of interest previously paid under that section in respect of that corporation tax,
as are necessary to secure that the total sum (if any) paid or payable under that section in respect of corporation tax for that accounting period is the same as it would have been if the tax discharged had never been charged.
1B
C1452
F359Subject to subsection (2A) below Where relief from tax F231... paid for any chargeable period is given to any person by repayment, he shall be entitled to require that the amount repaid shall be treated for the purposes of this section, so far as it will go, as if it were a discharge of the tax charged on him (whether alone or together with other persons) by or by virtue of any assessment for or relating to the same chargeable period, so, however, that it shall not be applied to any assessment made after the relief was given and that it shall not be applied to more than one assessment so as to reduce, without extinguishing, the amount of tax charged thereby.
F2322A
In any case where—
a
relief from corporation tax is given to any person by repayment, and
b
that tax was paid for an accounting period ending after the day which is the appointed day for the purposes of section F23310 of the principal Act,
that person shall be entitled to require that the amount repaid shall be treated for the purposes of this section, so far as it will go, as if it were a discharge of the corporation tax charged on him for that period.
3
Notwithstanding anything in the preceding provisions of this section, no relief, whether given by way of discharge or repayment, shall be treated for the purposes of this section as—
F234a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
affecting tax charged by any assessment to income tax made under Schedule A or Schedule D if either—
F234i
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ii
it arises in connection with income taxable otherwise than under Schedule A or Schedule D, or
iii
it relates to a source income from which is taxable otherwise than under Schedule A or Schedule D F237or
C1464
For the purposes of this section a relief from corporation tax or capital gains tax shall not be treated as affecting tax charged by any assessment unless the assessment is to the same tax .
F23891A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
92 Remission in certain cases of interest on tax in arrear by reason of exchange restrictions.
C1471
The provisions of this section shall have effect where the Board are satisfied as respects any tax carrying interest under section 86 of this Act—
a
that the tax is in respect of income or chargeable gains arising in a country outside the United Kingdom, and
b
that, as the result of action of the government of that country, it is impossible for the income or gains to be remitted to the United Kingdom, and
c
that having regard to the matters aforesaid and to all the other circumstances of the case it is reasonable that the tax should for the time being remain uncollected,
and the Board allow the tax to remain uncollected accordingly.
C1472
Interest on the said tax shall, subject to subsection (3) below, cease to run under the said section 86 as from the date on which the Board were first in possession of the information necessary to enable them to be satisfied as aforesaid and, if the said date is not later than three months from the time when the tax became due and payable, the interest thereon under the said section 86 in respect of the period before the said date shall be remitted.
C1473
Where, under subsection (2) above, interest has ceased to run on any tax and thereafter demand is made by the collector or other proper officer for payment of all or any of that tax, interest under the said section 86 shall again begin to run from the date of the demand in respect of the amount demanded:
Provided that where all or any part of the amount demanded is paid not later than three months from the date of the demand, the interest under the said section 86 on the amount so paid running from the date of the demand shall be remitted.
C189C190C191 PART X PENALTIES, ETC.
Part X (ss. 93-107) applied (with modifications) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 16(1)(b), 177(4), Sch. 2
Part X (ss 93-107) applied (27.7.1993 with effect in relation to the year 1993-94 and subsequent years of assessment) by 1993 c. 34, s. 122(2)(3)
See Finance Act 1966 s.27, Sch.6 para.23(7)—regulations under Finance Act 1965 s.84(7)may apply any provisions of Finance Act 1960 Part III (now Taxes Management Act 1970 Part X) in relation to penalties under para.23 and recovery of relief under Finance Act 1965 s.84 (overspill relief), subject to modifications, etc.
F44293 Failure to make return for income tax and capital gains tax.
1
This section applies where—
a
any person (the taxpayer) has been required by a notice served under or for the purposes of section 8 or 8A of this Act (or either of those sections as extended by section 12 of this Act) to deliver any return, and
b
he fails to comply with the notice.
2
The taxpayer shall be liable to a penalty which shall be £100.
3
If, on an application made to them by an officer of the Board, the General or Special Commissioners so direct, the taxpayer shall be liable to a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which he is notified of the direction (but excluding any day for which a penalty under this subsection has already been imposed).
4
If—
a
the failure by the taxpayer to comply with the notice continues after the end of the period of six months beginning with the filing date, and
b
no application is made under subsection (3) above before the end of that period,
the taxpayer shall be liable to a further penalty which shall be £100.
5
Without prejudice to any penalties under subsections (2) to (4) above, if—
a
the failure by the taxpayer to comply with the notice continues after the anniversary of the filing date, and
b
there would have been a liability to tax shown in the return,
the taxpayer shall be liable to a penalty of an amount not exceeding the liability to tax which would have been so shown.
6
No penalty shall be imposed under subsection (3) above in respect of a failure at any time after the failure has been remedied.
7
If the taxpayer proves that the liability to tax shown in the return would not have exceeded a particular amount, the penalty under subsection (2) above, together with any penalty under subsection (4) above, shall not exceed that amount.
8
On an appeal against the determination under section 100 of this Act of a penalty under subsection (2) or (4) above, neither section 50(6) to (8) nor section 100B(2) of this Act shall apply but the Commissioners may—
a
if it appears to them that, throughout the period of default, the taxpayer had a reasonable excuse for not delivering the return, set the determination aside; or
b
if it does not so appear to them, confirm the determination.
9
References in this section to a liability to tax which would have been shown in the return are references to an amount which, if a proper return had been delivered on the filing date, would have been payable by the taxpayer under section 59B of this Act for the year of assessment.
10
In this section—
“the filing date” means the day mentioned in section 8(1A) or, as the case may be, section 8A(1A) of this Act;
“the period of default”, in relation to any failure to deliver a return, means the period beginning with the filing date and ending with the day before that on which the return was delivered.
93AF443Failure to make partnership return.
1
This section applies where, in the case of a trade, profession or business carried on by two or more persons in partnership—
a
a partner (the representative partner) has been required by a notice served under or for the purposes of section 12AA(2) or (3) of this Act to deliver any return, and
b
he fails to comply with the notice.
2
Each relevant partner shall be liable to a penalty which shall be £100.
3
If, on an application made to them by an officer of the Board, the General or Special Commissioners so direct, each relevant partner shall be liable, for each day on which the failure continues after the day on which the representative partner is notified of the direction (but excluding any day for which a penalty under this subsection has already been imposed), to a further penalty or penalties not exceeding £60.
4
If—
a
the failure by the representative partner to comply with the notice continues after the end of the period of six months beginning with the filing date, and
b
no application is made under subsection (3) above before the end of that period,
each relevant partner shall be liable to a further penalty which shall be £100.
5
No penalty shall be imposed under subsection (3) above in respect of a failure at any time after the failure has been remedied.
6
Where, in respect of the same failure to comply, penalties under subsection (2), (3) or (4) above are determined under section 100 of this Act as regards two or more relevant partners—
a
no appeal against the determination of any of those penalties shall be brought otherwise than by the representative partner;
b
any appeal by that partner shall be a composite appeal against the determination of each of those penalties; and
c
section 100B(3) of this Act shall apply as if that partner were the person liable to each of those penalties.
7
On an appeal against a determination under section 100 of this Act of a penalty under subsection (2) or (4) above, neither section 50(6) to (8) nor section 100B(2) of this Act shall apply but the Commissioners may—
a
if it appears to them that, throughout the period of default, the representative partner had a reasonable excuse for not delivering the return, set the determination aside; or
b
if it does not so appear to them, confirm the determination.
8
In this section—
“the filing date” means the day specified in the notice under section 12AA(2) or (3) of this Act;
“the period of default”, in relation to any failure to deliver a return, means the period beginning with the filing date and ending with the day before that on which the return was delivered;
“relevant partner” means a person who was a partner at any time during the period in respect of which the return was required.
94F239 Failure to make return for corporation tax.
1
If a company has been required by a notice served under section 11 of this Act (or under that section as extended by section 12 of this Act) to deliver a return for any period (in this section referred to as “the return period”) and the company fails to make proper delivery of the return, then, subject to subsections (3) and (5) below, the company shall be liable to a penalty which,—
a
if the return is delivered before the expiry of the period of three months beginning on the day following the final day for the delivery of the return, shall be £100; and
b
in any other case, shall be £200.
2
In relation to a return required by such a notice as is referred to in subsection (1) above,—
a
any reference in this section (however expressed) to the delivery of the return is a reference to its delivery together with the accompanying accounts, statements and reports referred to in section 11(1) of this Act; and
b
any reference in this section to making proper delivery of the return is a reference to the delivery of the return on or before the day which (in accordance with section 11(4) of this Act) is the final day for the delivery of the return.
3
In a case where—
a
a company is required to deliver a return for a return period, and
b
the return period is a period for which, under the M9Companies Act 1985, the company is required to deliver accounts to the Registrar of Companies,
the company shall not be liable to a penalty under subsection (1) above by reason of a failure to make proper delivery of the return if the return is delivered on or before the day which is the last day for the delivery to the Registrar of the accounts referred to in paragraph (b) above.
4
In the application of this section to a company registered in Northern Ireland, the reference in subsection (3) above to the Companies Act 1985 shall be construed as a reference to the M10Companies (Northern Ireland) Order 1986 and references to the Registrar of Companies shall be construed accordingly.
5
In any case where—
a
a company is within the charge to corporation tax for three consecutive accounting periods, each of which is a return period, and
b
at no time between the beginning of the first of those periods and the end of the last is the company outside the charge to corporation tax, and
c
the company fails to make proper delivery of the return for the third of those periods, and
d
the company was liable to a penalty under this section in respect of each of the first two of those periods,
subsection (1) above shall have effect in relation to the failure referred to in paragraph (c) above as if for “£100” there were substituted “£500” and for “£200” there were substituted “£1,000”.
6
If a company which has been required as mentioned in subsection (1) above to deliver a return fails to deliver the return before F240whichever is the later of the end of the final day for the delivery of the return andthe expiry of the period of eighteen months beginning on the day following the last day of the return period, then (without prejudice to any penalty under the preceding provisions of this section) the company shall be liable to a penalty which,—
a
if the return is delivered before the expiry of the period of two years beginning on the day following that last day, shall be 10 per cent. of the tax unpaid at the end of the eighteen months referred to above; and
b
in any other case, shall be 20 per cent. of the tax unpaid at the end of those eighteen months.
7
In subsection (6) above “the tax unpaid” at any time means the amount by which the corporation tax chargeable on the profits of the company for the return period which then remains unpaid exceeds any income tax F241which, under section 7(2) or 11(3) of the principal Act, is to be set off against the corporation tax so chargeable.
8
In determining for the purposes of subsection (7) above how much of the corporation tax chargeable on the profits of a company for the return period remains unpaid at any time, no account shall be taken of the discharge of any liability for that tax which, pursuant to a claim under subsection (3) of F242section 239(3) of the principal Act, is attributable to an amount of surplus advance corporation tax, as defined in that subsection, unless it is a surplus for an accounting period ending not later than two years after the end of the return period.
C150C151C155C24495 Incorrect return or accounts for income tax or capital gains tax.
C1521
Where a person fraudulently or negligently—
a
b
makes any incorrect return, statement, or declaration in connection with any claim for any allowance, deduction or relief in respect of income tax or capital gains tax, or
c
submits to an inspector or the Board or any Commissioners any incorrect accounts in connection with the ascertainment of his liability to income tax or capital gains tax,
he shall be liable to a penalty not exceeding [F244the amount of the difference specified in subsection (2) below.]
C1532
The difference is that between—
C154a
the amount of income tax and capital gains tax payable for the relevant years of assessment by the said person (including any amount of income tax deducted at source and not repayable), and
C153b
the amount which would have been the amount so payable if the return, statement, declaration or accounts as made or submitted by him had been correct.
3
The relevant years of assessment for the purposes of this section are, in relation to anything delivered, made or submitted in any year of assessment, that, the next following, and any preceding year of assessment; F448...
95AF444Incorrect partnership return or accounts.
1
This section applies where, in the case of a trade, profession or business carried on by two or more persons in partnership—
a
a partner (the representative partner)—
i
delivers an incorrect return of a kind mentioned in section 12AA of this Act, or
ii
makes any incorrect statement or declaration in connection with such a return, or
iii
submits to an officer of the Board any incorrect accounts in connection with such a return, and
b
either he does so fraudulently or negligently, or his doing so is attributable to fraudulent or negligent conduct on the part of a relevant partner.
2
Each relevant partner shall be liable to a penalty not exceeding the difference between—
a
the amount of income tax or corporation tax payable by him for the relevant period (including any amount of income tax deducted at source and not repayable), and
b
the amount which would have been the amount so payable if the return, statement, declaration or accounts made or submitted by the representative partner had been correct;
and in determining each such penalty, regard shall be had only to the fraud or negligence, or the fraudulent or negligent conduct, mentioned in subsection (1(b) above.
3
Where, in respect of the same return, statement, declaration or accounts, penalties under subsection (2) above are determined under section 100 of this Act as regards two or more relevant partners—
a
no appeal against the determination of any of those penalties shall be brought otherwise than by the representative partner;
b
any appeal by that partner shall be a composite appeal against the determination of each of those penalties; and
c
section 100B(3) of this Act shall apply as if that partner were the person liable to each of those penalties.
4
In this section—
“relevant partner” means a person who was a partner at any time during the relevant period;
“relevant period” means the period in respect of which the return was made.
96Incorrect return or accounts for corporation tax.
1
Where a company fraudulently or negligently—
a
delivers any incorrect return under section 11 of this Act (or under that section as extended by section 12 of this Act), or
b
makes any incorrect return, statement or declaration in connection with any claim for any allowance, deduction or relief in respect of corporation tax, or
c
submits to an inspector or any Commissioners any incorrect accounts in connection with the ascertainment of the company’s liability to corporation tax,
the company shall be liable to a penalty not exceeding [the amount of the difference specified in subsection (2) below F245.]
2
The difference is that between—
a
the amount of corporation tax payable by the said company for the accounting period or accounting periods comprising the period to which the return, statement, declaration or accounts relate, and
b
the amount which would have been the amount so payable if the return, statement, declaration or accounts had been correct. C156
97 Incorrect return or accounts: supplemental.
1
Where any such return, statement, declaration or accounts as are mentioned in section 95 and 96 above were made or submitted by any person neither fraudulently nor negligently and it comes to his notice (or, if he has died, to the notice of his personal representatives) that they were incorrect, then, unless the error is remedied without unreasonable delay, the return, statement, declaration or accounts shall be treated for the purposes of those sections as having been negligently made or submitted by him. C157
2
97AAF445Failure to produce documents under section 19A.
1
Where a person fails to comply with a notice or requirement under section 19A(2) or (3) of this Act, he shall be liable, subject to subsection (4) below—
a
to a penalty which shall be £50, and
b
if the failure continues after a penalty is imposed under paragraph (a) above, to a further penalty or penalties not exceeding the relevant amount for each day on which the failure continues after the day on which the penalty under that paragraph was imposed (but excluding any day for which a penalty under this paragraph has already been imposed).
2
In subsection (1)(b) above “the relevant amount” means—
a
in the case of a determination of a penalty by an officer of the Board under section 100 of this Act, £30;
b
in the case of a determination of a penalty by the Commissioners under section 100C of this Act, £150.
3
An officer of the Board authorised by the Board for the purposes of section 100C of this Act may commence proceedings under that section for any penalty under subsection (1)(b) above, notwithstanding that it is not a penalty to which subsection (1) of section 100 of this Act does not apply by virtue of subsection (2) of that section.
4
No penalty shall be imposed under subsection (1) above in respect of a failure within that subsection at any time after the failure has been remedied.
97AF246Two or more tax-geared penalties in respect of the same tax.
Where two or more penalties—
a
are incurred by any person and fall to be determined by reference to any income tax or capital gains tax with which he is chargeable for a year of assessment; or
b
are incurred by any company and fall to be determined by reference to any corporation tax with which it is chargeable for an accounting period,
each penalty after the first shall be so reduced that the aggregate amount of the penalties, so far as determined by reference to any particular part of the tax, does not exceed whichever is or, but for this section, would be the greater or greatest of them, so far as so determined.
C160C161C16298 Special returns, etc.
1
a
has been required, by a notice served under or for the purposes of any of the provisions specified in the first column of the Table below, to deliver any return or other document, to furnish any particulars, to produce any document, or to make anything available for inspection, and he fails to comply with the notice, or
b
fails to furnish any information, give any certificate or produce any document or record in accordance with any of the provisions specified in the second column of the Table below,
he shall be liable, subject to F248subsections (3) and (4) below—
i
to a penalty not exceeding £300, and
ii
if the failure continues after a penalty is imposed under paragraph (i) above, to a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which the penalty under paragraph (i) above was imposed (but excluding any day for which a penalty under this paragraph has already been imposed).
2
F249Subject to section 98A below, where a person fraudulently or negligently furnishes, gives, produces or makes any incorrect information, certificate, document, record or declaration of a kind mentioned in any of the provisions specified in either column of the Table below, he shall be liable to a penalty not exceeding F249£3000.
F2503
No penalty shall be imposed under subsection (1) above in respect of a failure within paragraph (a) of that subsection at any time after the failure has been remedied.
C1634
No penalty shall be imposed under paragraph (ii) of subsection (1) above in respect of a failure within paragraph (b) of that subsection at any time after the failure has been remedied.
F2515
In the case of a failure to comply with section 765A(2)(a) or (b) of the principal Act, subsection (1) above shall have effect as if for “£300” there were substituted “£3000” and as if for “£60” there were substituted “£600”.
1. | 2. |
|---|---|
Part III of this Act, F252. . . | In the principal Act— |
F493. . . | section 41(2); |
In the principal Act— | F567regulations under section 51B; |
F253section 38(5); | section 124(3); |
F253section 42; | section 136(6); |
section 181(1); | F254... |
regulations under section 202; | section 148(7); |
section 217; | section 180(1); |
section 226(3) and (4); | regulations under section 202; |
section 234(7)(b), (8) and (9); | regulations under section 203; |
F452section 246H; | section 216; |
section 250(6) and (7); | section 226(1) and (2); |
section 272(7); | section 234(5), (6) and (7)(a); |
section 310(4) and (5); | section 250(1) to (5); |
[F255regulations under section 326C ] | section 310(1), (2) and (3); |
regulations under section 333; | section 313(5); |
F570regulations under section 431E(1) or 441A(3); | [F255Regulations under section 326C ] |
regulations under section 476(1); | Regulations under section 333; |
[F256regulations under section 477A ] | section 350(1); |
F257. . . | section 375(5); |
section 482(3); | F571regulations under section 431E(1) or 441A(3); |
regulations under section 482(11); | regulations under section 476(1); |
section 483; | [F256regulations under section 477A ;] |
Regulations under section 555(7); | [F258section 482(2) ] |
section 561(8); | regulations under section 482(11); |
section 588(7); | F563section 552(1) to (4); |
regulations under section 602; | F563regulations under section 552(4A); |
F450regulations under section 605(1A)(b) to (d); | regulations under section 555(7); |
section 605(1),(2),(3)(b) and (4); | regulations under section 566(1) or (2); |
regulations under section 612(3); | section 577(4); |
regulations under section 639; | section 588(6); |
section 652; | regulations under section 602; |
F572section 660F | F451regulations under section 605(1A)(a); |
section 700(4); | section 605(3)(a); |
section 708; | regulations under section 612(3); |
section 728; | regulations under section 639; |
section 729(11); | [F259section 765A(2)(a) ;] |
section 730(8); | section 772(6); |
section 737(8); | F260Schedule 3, paragraph 6C; |
section 745(1); | Schedule 13; |
section 755; | regulations under paragraph 7 of Schedule 14; |
[F259section 765A(2)(b) ;] | Schedule 15, paragraph 14(4); |
section 768(9); | F565Schedule 15B, paragraph 5(1); |
section 772(1) and (3); | Schedule 16; |
section 774(5); | Schedule 22, paragraph 2. |
section 778; | Regulations under section F261151 of the 1992 Act. |
section 815; | [F262Sections 23(2), F56933F(5), 48 and 49(2) of the Capital Allowances Act 1990 .] |
Schedule 3, paragraph 13(1); | Regulations 16 and 17 of the Income Tax (Interest Relief) Regulations 1982. |
Schedule 5, paragraph 10; | Paragraph 15(3) of Schedule 14 to the Finance Act 1984. |
Schedule 9, [F264paragraph 6]; | F263. . . |
Schedule 15 paragraph 14(5); | [F265Section 85(1) and (2) of the Finance Act 1988 ] |
F564Schedule 15B, paragraph 5(2); | [F266Regulations under section 57 of the Finance Act 1989.] |
F267. . . | F268. . . |
Schedule 22, paragraph 4. | F269Regulations under section 33 of the Finance Act 1991. |
Section 32 of the Finance Act 1973. | F453. . . |
Paragraph 2 of Schedule 15 to the Finance Act 1973. | F279Section 28(2) of the Finance (No.2) Act 1992. |
Regulations under section F270151 of the 1992 Act. | F449Paragraphs 2 to 6 of Schedule 5A to the 1992 Act. |
Paragraph F2712(9) of Schedule 1 to the 1992 Act. | F566regulations under section 73 of the Finance Act 1995; |
[F272Sections 23(4) and 49(4) of the Capital Allowances Act 1990 ] | |
Section F27398 of the 1992 Act. | |
Paragraph 15(1) of Schedule 14 to the Finance Act 1984. | |
Paragraph 6(1) of Schedule 22 to the Finance Act 1985. | |
F274Section 79(6) of the 1992 Act. | |
[F275Regulations under section 57 of the Finance Act 1989 ] | |
[F276Section 73 of the Finance Act 1989 ] | |
[F266Paragraphs 2 to 4 of Schedule 12 to the Finance Act 1989 ] | |
F277235 of the 1992 Act. | |
F269Regulations under section 33 of the Finance Act 1991 | |
F568section 86(12) of the Finance Act 1995; |
The references in this Table to regulations under section 602 have effect only for the purpose of giving effect to any provision mentioned in paragraphs (a) and (b) of subsection (2) of that section
C164C165C166C167C169C17098AF281Special penalties in the case of certain returns.
1
Regulations under section 203(2) (PAYE) or 566(1) (sub-contractors) of the principal Act may provide that this section shall apply in relation to any specified provision of the regulations.
2
Where this section applies in relation to a provision of regulations, any person who fails to make a return in accordance with the provision shall be liable—
C164C168a
to a penalty or penalties of the relevant monthly amount for each month (or part of a month) during which the failure continues, but excluding any month after the twelfth or for which a penalty under this paragraph has already been imposed, and
C164b
if the failure continues beyond twelve months, without prejudice to any penalty under paragraph (a) above, to a penalty not exceeding so much of the amount payable by him in accordance with the regulations for the year of assessment to which the return relates as remained unpaid at the end of 19th April after the end of that year.
3
For the purposes of subsection (2)(a) above, the relevant monthly amount in the case of a failure to make a return—
a
where the number of persons in respect of whom particulars should be included in the return is fifty or less, is £100, and
b
where the number is greater than fifty, is £100 for each fifty such persons and an additional £100 where that number is not a multiple of fifty.
C1644
Where this section applies in relation to a provision of regulations, any person who fraudulently or negligently makes an incorrect return of a kind mentioned in the provision shall be liable to a penalty not exceeding the difference between—
a
the amount payable by him in accordance with the regulations for the year of assessment to which the return relates, and
b
the amount which would have been so payable if the return had been correct.
98BF282 European Economic Interest Groupings.
1
In this section “grouping” means a European Economic Interest Grouping formed in pursuance of Council Regulation (EEC) No. 2137/85 of 25th July 1985, whether registered in Great Britain, in Northern Ireland or elsewhere.
F4542
Subsections (2A) to (4) below apply where a grouping or member of a grouping required by a notice given under section 12A of this Act to deliver a return or other document fails to comply with the notice.
2A
The grouping or member shall be liable to a penalty not exceeding £300 multiplied by the number of members of the grouping at the time of the failure to comply.
2B
If, on an application made to them by an officer of the Board, the General or Special Commissioners so direct, the grouping or member shall be liable, for each day on which the failure continues after the day on which the grouping or member is notified of the direction (but excluding any day for which a penalty under this subsection has already been imposed), to a further penalty or penalties not exceeding £60 multiplied by the number of members of the grouping at the end of that day.
3
No penalty shall be imposed under F455subsection (2A) or (2B) above in respect of a failure at any time after the failure has been remedied.
4
If a grouping to which, or member to whom, a notice is given proves that there was no income or chargeable gain to be included in the return, the penalty under F456subsections (2A) and (2B) above shall not exceed £100.
5
Where a grouping or member fraudulently or negligently delivers an incorrect return, accounts or statement, or makes an incorrect declaration in a return delivered, under section 12A above, the grouping or member shall be liable to a penalty not exceeding £3000 multiplied by the number of members of the grouping at the time of delivery.
99C171F283Assisting in preparation of incorrect return, etc.
Any person who assists in or induces the preparation or delivery of any information, return, accounts or other document which—
a
he knows will be, or is or are likely to be, used for any purpose of tax, and
b
he knows to be incorrect,
shall be liable to a penalty not exceeding £3,000.
99AF284Certificates of non-liability to income tax.
If a person who gives a certificate of non-liability to income tax in pursuance of regulations under section 477A of the principal Act (building societies) or section 480B of that Act (deposit-takers)—
a
gives the certificate fraudulently or negligently, or
b
fails to comply with any undertaking contained in the certificate in pursuance of the regulations,
he shall be liable to a penalty not exceeding £3,000.
C172100F361Determination of penalties by officer of the Board.
1
Subject to subsection (2) below and except where proceedings for a penalty have been instituted under section 100D below F494... , an officer of the Board authorised by the Board for the purposes of this section may make a determination imposing a penalty under any provision of the Taxes Acts and setting it at such amount as, in his opinion, is correct or appropriate.
2
Subsection (1) above does not apply where the penalty is a penalty under—
a
section 93(1) above as it has effect before the amendments made by section 162 of the Finance Act 1989 or section 93(1)(a) above as it has effect after those amendments,
b
section 94(1) above as it has effect before the substitution made by section 83 of the Finance (No. 2) Act 1987,
c
section 98(1) above as it has effect before the amendments made by section 164 of the Finance Act 1989 or section 98(1)(i) above as it has effect after those amendments, or
d
paragraph (a)(i) of section 98A(2) above as it has effect by virtue of section 165(2) of the Finance Act 1989, F285or
e
section 98B(2)(a) above.
3
Notice of a determination of a penalty under this section shall be served on the person liable to the penalty and shall state the date on which it is issued and the time within such an appeal against the determination may be made.
4
After the notice of a determination under this section has been served the determination shall not be altered except in accordance with this section or on appeal.
5
If it is discovered by an officer of the Board authorised by the Board for the purposes of this section that the amount of a penalty determined under this section is or has become insufficient the officer may make a determination in a further amount so that the penalty is set at the amount which, in his opinion, is correct or appropriate.
6
In any case where—
a
a determination under this section is of a penalty under section 94(6) above, and
b
after the determination has been made it is discovered by an officer of the Board authorised by the Board for the purposes of this section that the amount which was taken into account as the relevant amount of tax is or has become excessive,
the determination shall be revised so that the penalty is set at the amount which is correct; and, where more than the correct amount has already been paid, the appropriate amount shall be repaid.
C173100AF361 Provisions supplementary to section 100.
1
Where a person who has incurred a penalty has died, a determination under section 100 above which could have been made in relation to him may be made in relation to his personal representatives, and any penalty imposed on personal representatives by virtue of this subsection shall be a debt due from and payable out of his estate.
2
A penalty determined under section 100 above shall be due and payble at the end of the period of thirty days beginning with the date of the issue of the notice of the determination.
3
A penalty determined under section 100 above shall for all purposes be treated as if it were charged in an assessment and due and payable.
C174100BF361 Appeals against penalty determinations.
1
An appeal may be brought against the determination of a penalty under section 100 above and, subject to F457sections 93, 93A and 95A of this ActF573and the following provisions of this section, the provisions of this Act relating to appeals shall have effect in relation to an appeal against such a determination as they have effect in relation to an appeal against an assessment to tax.
2
F458Subject to sections 93(8) and 93A(7) of this Act on an appeal against the determination of a penalty under section 100 above section 50(6) to (8) of this Act shall not apply but—
a
in the case of a penalty which is required to be of a particular amount, the Commissioners may—
i
if it appears to them that no penalty has been incurred, set the determination aside,
ii
if the amount determined appears to them to be correct, confirm the determination, or
iii
if the amount determined appears to them to be incorrect, increase or reduce it to the correct amount.
b
in the case of any other penalty, the Commissioners may—
i
if it appears to them that no penalty has been incurred, set the determination aside,
ii
if the amount determined appears to them to be appropriate, confirm the determination,
iii
if the amount determined appears to them to be excessive, reduce it to such other amount (including nil) as they consider appropriate, or
iv
if the amount determined appears to them to be insufficient, increase it to such amount not exceeding the permitted maximum as they consider appropriate.
3
Without prejudice to F495any right to have a case stated under regulation 22 of the General Commissioners Regulations or any right of appeal under section 56A of this Act, an appeal from a decision of the Commissioners against the amount of a penalty which has been determined under section 100 above or this section shall lie, at the instance of the person liable to the penalty, to the High Court or, in Scotland to the Court of Session as the Court of Exchequer in Scotland; and on that appeal the court shall have the like jurisdiction as is conferred on the Commissioners by virtue of this section.
C175100CF361 Penalty proceedings before Commissioners.
1
An officer of the Board authorised by the Board for the purposes of this section may commence proceedings before the General or Special Commissioners for any penalty to which subsection (1) of section 100 above does not apply by virtue of subsection (2) of that section.
2
Proceedings under this section shall be by way of information in writing, made to the Commissioners, and upon summons issued by them to the defendant (or defender) to appear before them at a time and place stated in the summons; and they shall hear and decide each case in a summary way.
3
Any penalty determined by the Commissioners in proceedings under this section shall for all purposes be treated as if it were tax charged in an assessment and due and payable.
4
An appeal against the determination of a penalty in proceedings under this section shall lie to the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland—
a
by any party on a question of law, and
b
by the defendant (or, in Scotland, the defender) against the amount of the penalty.
5
On any such appeal the court may—
a
if it appears that no penalty has been incurred, set the determination aside,
b
if the amount determined appears to be appropriate, confirm the determination,
c
if the amount determined appears to be excessive, reduce it to such other amount (including nil) as the court considers appropriate, or
d
if the amount determined appears to be insufficient, increase it to such amount not exceeding the permitted maximum as the court considers appropriate.
C176100DF361 Penalty proceedings before court.
1
Where in the opinion of the Board the liability of any person for a penalty arises by reason of the fraud of that person or any other person, proceedings for the penalty may be instituted before the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland.
2
Proceedings under this section which are not instituted (in England, Wales or Northern Ireland) under the Crown Proceedings Act 1947 by and in the name of the Board as an authorised department for the purposes of that Act shall be instituted—
a
in England and Wales, in the name of the Attorney General,
b
in Scotland, in the name of the Lord Advocate, and
c
in Northern Ireland, in the name of the Attorney General for Northern Ireland.
3
Any proceedings under this section instituted in England and Wales shall be deemed to be civil proceedings by the Crown within the meaning of Part II of the Crown Proceedings Act 1947 and any such proceedings instituted in Northern Ireland shall be deemed to be civil proceedings within the meaning of that Part of that Act as for the time being in force in Northern Ireland.
4
If in proceedings under this section the court does not find that fraud is proved but consider that the person concerned is nevertheless liable to a penalty, the court may determine a penalty notwithstanding that, but for the opinion of the Board as to fraud, the penalty would not have been a matter for the court.
101 Evidence of profits for purposes of preceding provisions of Part X.
For the purposes of the preceding provisions of this Part of this Act, any assessment which can no longer be varied by any Commissioners on appeal or by order of any court shall be sufficient evidence that the income or chargeable gains F286 in respect of which tax is charged in the assessment arose or were received F286 as stated therein C177C178.
C179C180102 Mitigation of penalties.
The Board may in their discretion mitigate any penalty, or stay or compound any proceedings for F287a penalty, and may also, after judgment, further mitigate or entirely remit the penalty.
C181103F288Time limits for penalties.
1
Subject to subsection (2) below, where the amount of a penalty is to be ascertained by reference to tax payable by a person for any period, the penalty may be determined by an officer of the Board, or proceedings for the penalty may be commenced before the Commissioners or a Court—
a
at any time within six years after the date on which the penalty was incurred, or
b
at any later time within three years after the final determination of the amount of tax by reference to which the amount of the penalty is to be ascertained.
2
Where the tax was payable by a person who has died, and the determination would be made in relation to his personal representatives, section (1)(b) above does not apply if the tax was charged in an assessment made later than six years after F459the 31st January next following the chargeable period for which it was charged.
3
A penalty under section 99 of this Act may be determined by an officer of the Board, or proceedings for such a penalty may be commenced before a court, at any time within twenty years after the date on which the penalty was incurred.
4
A penalty to which neither subsection (1) nor subsection (3) above applies may be so determined, or proceedings for such a penalty may be commenced before the Commissioners or a court, at any time within six years after the date on which the penalty was incurred or began to be incurred.
103AF446Interest on penalties.
A penalty under any of the provisions of F574Part II, IV or VA or this Part of this Act shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date on which it becomes due and payable until payment.
C182104 Saving for criminal proceedings.
105 Evidence in cases of fraud or wilful default.
1
Statements made or documents produced by or on behalf of a person shall not be inadmissable in any such proceedings as are mentioned in subsection (2) below by reason only that it has been drawn to his attention that—
F289a
pecuniary settlements may be accepted instead of a penalty being determined, or proceedings being instituted, in relation to any tax,
b
though no undertaking can be given as to whether or not the Board will accept such a settlement in the case of any particular person, it is the practice of the Board to be influenced by the fact that a person has made a full confession of any F290fraudulent conduct to which he had been a party and has given full facilities for investigation,
and that he was or may have been induced thereby to make the statements or produce the documents.
2
The proceedings mentioned in subsection (1) above are—
C186a
any criminal proceedings against the person in question for any form of F290fraudulent conduct in connection with or in relation to tax, and
c
any proceedings for a penalty or on appeal against the determination of a penalty.
106 Refusal to allow a deduction of income tax, and avoidance of agreements for payment without deduction.
1
A person who refuses to allow a deduction of income tax authorised by the Taxes Acts to be made out of any payment shall incur a penalty of £50.
2
Every agreement for payment of interest, rent or other annual payment in full without allowing any such deduction shall be void.
Scotland
107 Criminal liability for false statements made to obtain allowances.
1
This section applies only in Scotland.
2
If any person, for the purpose of obtaining any allowance, reduction, rebate or repayment in respect of tax, either for himself or for any other person, or, in any return made with reference to tax, knowingly makes any false statement or false representation, he shall be liable, on summary conviction, to imprisonment for a term not exceeding six months.
3
Notwithstanding anything in the Summary Jurisdiction (Scotland) Act 1954, proceedings for an offence under this section may be commenced at any time within three years from the time when the offence was committed.
4
The expression “return” in this section shall be construed without regard to the definition in section 118(1) of this Act C188.
PART XI MISCELLANEOUS AND SUPPLEMENTAL
F576Settlements
S. 107A and cross-heading inserted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 103(5)
107A Relevant trustees.
1
Subject to the following provisions of this section, anything which for the purposes of this Act is done at any time by or in relation to any one or more of the relevant trustees of a settlement shall be treated for those purposes as done at that time by or in relation to the other or others of those trustees.
2
Subject to subsection (3) below, where the relevant trustees of a settlement are liable—
a
to a penalty under section 7, 12B, 93, 95 or 97AA of this Act or paragraph 2A of Schedule 1A to this Act, or to interest under section 103A of this Act on such a penalty;
b
to make a payment in accordance with an assessment under section 30 of this Act, or to make a payment under section 59A or 59B of this Act;
c
to a surcharge under section 59C of this Act, or to interest under that section on such a surcharge; or
d
to interest under section 86 of this Act,
the penalty, interest, payment or surcharge may be recovered (but only once) from any one or more of those trustees.
3
No amount may be recovered by virtue of subsection (2)(a) or (c) above from a person who did not become a relevant trustee until after the relevant time, that is to say—
a
in relation to so much of a penalty under section 93(3) or 97AA(1)(b) of this Act as is payable in respect of any day, or to interest under section 103A of this Act on so much of such a penalty as is so payable, the beginning of that day;
b
in relation to a penalty under any other provision of this Act mentioned in subsection (2)(a) above, or to interest under section 103A of this Act on such a penalty, the time when the relevant act or omission occurred; and
c
in relation to a surcharge under subsection (2) or (3) of section 59C of this Act, or to interest under that section on such a surcharge, the beginning of the day mentioned in that subsection;
and in paragraph (b) above “the relevant act or omission” means the act or omission which caused the penalty to become payable.
4
In a case where—
a
subsection (2)(a) above applies in relation to a penalty under section 93 of this Act, or
b
subsection (2)(c) above applies in relation to a surcharge under section 59C of this Act,
subsection (8) of section 93 or, as the case may be, subsection (9) of section 59C of this Act shall have effect as if the reference to the taxpayer were a reference to each of the relevant trustees.
Companies
108 Responsibility of company officers.
1
Everything to be done by a company under the Taxes Acts C192 shall be done by the company acting through the proper officer of the company F293or, except where a liquidator has been appointed for the company, through such other person as may for the time being have the express, implied or apparent authority of the company to act on its behalf for the purpose, and service on a company of any document under or in pursuance of the Taxes Acts C192 may be effected by serving it on the proper officer.
This subsection is without prejudice to Part VIII of this Act (charges on non-residents) as it applies to corporation tax.
C1922
Corporation tax or other tax chargeable under the Corporation Tax Acts on a company which is not a body corporate, or which is a body corporate not incorporated under the [F294Companies Act 1985] or any other enactment forming part of the law of the United Kingdom, or by Charter, may, at any time after the tax becomes due, and without prejudice to any other method of recovery, be recovered from the proper officer of the company, and that officer may retain out of any money coming into his hands on behalf of the company sufficient sums to pay that tax, and, so far as he is not so reimbursed, shall be entitled to be indemnified by the company in respect of the liability so imposed on him.
3
For the purposes of this section—
a
the proper officer of a company which is a body corporate shall be the secretary or person acting as secretary of the company, except that if a liquidator has been appointed for the company the liquidator shall be the proper officer,
C193b
the proper officer of a company which is not a body corporate or for which there is no proper officer within paragraph (a) above, shall be the treasurer or the person acting as treasurer, of the company .
F2954
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
109F298Corporation tax on close company in connection with loans to participators etc.
1
The provisions of F296sections 419 and 420 of the principal Act (charge of tax in connection with loans by close companies to participators etc.) directing that tax be assessed and recoverable as if it were an amount of corporation tax shall be taken as applying, subject to the provisions of the Taxes Acts, and to any necessary modifications, all enactments applying generally to corporation tax, including those relating to the assessing, collecting and receiving of corporation tax, those conferring or regulating a right of appeal and those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.
2
3
F3653A
If there is such a repayment of the whole or any part of a loan or advance as is referred to in subsection F366(4) of section F366419 of the principal Act, interest under section 87A of this Act on so much of the tax under the said section F366419 as is referable to the amount repaid shall not be payable in respect of any period after the date on which the repayment was made.
4
Section 91 of this Act shall not apply in consequence of any discharge or repayment of tax under section F296419(4) of the principal Act.
5
For the purposes of the said section 91, a relief from tax under the said F296sections 419 and 420 shall not be treated as affecting tax charged by any assessment unless the assessment is to tax under that section.
Valuation
C194110 Valuation of land: power of entry.
Any person authorised in that behalf by the Board may, on producing if so required evidence of his authority, at any reasonable time enter on and inspect, with a view to establishing its annual value, any land the annual value of which falls to be determined for purposes of income tax or corporation tax .
111 Valuation of assets: power to inspect.
1
If for the purposes of F367the F2991992 Act the Board authorise an inspector or other officer of the Board to inspect any property for the purpose of ascertaining its market value the person having the custody or possession of that property shall permit the inspector or other officer so authorised to inspect it at such reasonable times as the Board may consider necessary.
F3001A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C1952
If any person wilfully delays or obstructs an inspector or other officer of the Board acting in pursuance of this section he shall be liable on summary conviction to a fine not exceeding £5.
Documents
112 Loss, destruction or damage to assessments, returns, etc.
C1961
Where any assessment to tax, or any duplicate of assessment to tax, or any return or other document relating to tax, has been lost or destroyed, or been so defaced or damaged as to be illegible or otherwise useless, the Commissioners, inspectors, collectors and other officers having powers in relation to tax may, notwithstanding anything in any enactment to the contrary, do all such acts and things as they might have done, and all acts and things done under or in pursuance of this section shall be as valid and effectual for all purposes as they would have been, if the assessment or duplicate of assessment had not been made, or the return or other document had not been made or furnished or required to be made or furnished :
Provided that, where any person who is charged with tax in consequence or by virtue of any act or thing done under or in pursuance of this section proves to the satisfaction of the Commissioners having jurisdiction in the case that he has already paid any tax for the same chargeable period in respect of the subject matter and on the account in respect of and on which he is so charged, relief shall be given to the extent to which the liability of that person has been discharged by the payment so made either by abatement from the charge or by repayment, as the case may require.
F3011A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C1972
In this section, “the Commissioners” means, as the case may require, either the Board or the General or Special Commissioners concerned.
F3023
The references in subsection (1) above to assessments to tax include references to determinations of penalties; and in its application to such determinations the proviso to that subsection shall have effect with the appropriate modifications.
C222113 Form of returns and other documents.
1
Any returns under the Taxes Acts shall be in such form as the Board prescribe, and in prescribing income tax forms under this subsection the Board shall have regard to the desirability of securing, so far as may be possible, that no person shall be required to make more than one return annually of the sources of his income and the amounts derived therefrom.
C198F3031A
Any notice or direction requiring any return to be made under the Taxes Acts to an inspector or other officer of the Board may be issued or given in the name of that officer, or as the case may be in the name of the Board, by any officer of the Board, and so as to require the return to be made to the first-mentioned officer.
C199C200C201C223C2321B
Where the Board or an inspector or other officer of the Board have in accordance with section 29 of this Act, or any other provision of the Taxes Acts, decided to make an assessment to tax, and have taken all other decisions needed for arriving at the amount of the assessment, they may entrust to some other officer of the Board responsibility for completing the assessing procedure, whether by means involving the use of a computer or otherwise, including responsibility for serving notice of the assessment on the person liable for tax.
F3041C
Where an officer of the Board has decided that an amount of tax carries interest under section 88 of this Act and has taken the decisions needed for arriving at the date when for the purposes of that section that tax ought to have been paid, he may entrust to any other officer of the Board responsibility for completing the determination procedure, whether by means involving the use of a computer of otherwise, including responsibility for serving notice of the determination on the person liable to the interest.
F3051D
Where an officer of the Board has decided to impose a penalty under section 100 of this Act and has taken all other decisions needed for arriving at the amount of the penalty, he may entrust to any other officer of the Board responsibility for completing the determination procedure, whether by means involving the use of a computer or otherwise, including responsibility for serving notice of the determination on the person liable to the penalty.
2
Any return or assessment or other document relating to chargeable gains or tax on capital gains may be combined with one relating to income or income tax.
C199C2013
Every assessment, F306determination of a penalty, duplicate, warrant, notice of assessment F306, of determination or of demand, or other document required to be used in assessing, charging, collecting and levying tax F306or determining a penalty shall be in accordance with the forms prescribed from time to time in that behalf by the Board, and a document in the form prescribed and supplied or approved by them shall be valid and effectual .
114C202C203 Want of form or errors not to invalidate assessments, etc.
1
An assessment F307or determination, warrant or other proceeding which purports to be made in pursuance of any provision of the Taxes Acts shall not be quashed, or deemed to be void or voidable, for want of form, or be affected by reason of a mistake, defect or omission therein, if the same is in substance and effect in conformity with or according to the intent and meaning of the Taxes Acts, and if the person or property charged or intended to be charged or affected thereby is designated therein according to common intent and understanding.
2
An assessment F307or determination shall not be impeached or affected—
a
by reason of a mistake therein as to—
i
the name or surname of a person liable, or
ii
the description of any profits or property, or
iii
the amount of the tax charged, or
b
by reason of any variance between the notice and the assessment F307or determination.
115C206 Delivery and service of documents.
C2041
A notice or form which is to be served under the Taxes Acts on a person may be either delivered to him or left at his usual or last known place or residence .
C2042
Any notice or other document to be given, sent, served or delivered under the Taxes Acts may be served by post, and, if to be given, sent, served or delivered to or on any person by the Board, by any officer of the Board, or by or on behalf of any body of Commissioners, may be so served addressed to that person—
a
at his usual or last known place of residence, or his place of business or employment, or
C205b
in the case of a company, at any other prescribed place, and in the case of a liquidator of a company, at his address for the purposes of the liquidation or any other prescribed place.
C2053
In subsection (2) above “prescribed” means prescribed by regulations made by the Board, and the power of making regulations for the purposes of that subsection shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.
4
Notices to be given or delivered to, or served on, the General Commissioners shall be valid and effectual if given or delivered to or served on their clerk .
F4965
Nothing in this section applies to any notice or other document required or authorised by the General Commissioners Regulations or the Special Commissioners Regulations to be sent or delivered to, or served on, any person.
115AF577Electronic lodgement of tax returns, etc.
Schedule 3A to this Act (which makes provision with respect to the electronic lodgement of tax returns and documents required in connection with tax returns) shall have effect.
F308116. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northern Ireland
C207117 Action of ejectment in Northern Ireland.
Unless other provision is made in that behalf by any enactment, an action of ejectment in Northern Ireland for non-payment of rent shall not be defeated on the ground that the person liable to pay the rent is entitled under the Income Tax Acts to a deduction which would reduce the amount due by him below a year’s rent.
Interpretation
118C211 Interpretation.
1
In this Act, unless the context otherwise requires—
“Act” includes an Act of the Parliament of Northern Ireland C208 and “enactment” shall be construed accordingly,
“the Board” means the Commissioners of Inland Revenue,
“body of persons” means any body politic, corporate or collegiate, and any company, fraternity, fellowship and society of persons, whether corporate or not corporate,
“branch or agency” means any factorship, agency, receivership, branch or management, and “branch or agent” shall be construed accordingly,C209
“chargeable gain” has the same meaning as in F368the F3091992 Act,
“chargeable period” means a year of assessment or a company’s accounting period,
“collector” means any collector of taxes,
“company” has the meaning given by F310sections 419 and 420 of the principal Act (with section F310468 of that Act) F311... ,
F497“the General Commissioners Regulations” means the General Commissioners (Jurisdiction and Procedure) Regulations 1994,
“incapacitated person” means any infant, person of unsound mind, lunatic, idiot or insane person,
F319“infant”, in relation to Scotland, except in section 73 of this Act, means a person under legal disability by reason of nonage, and, in the said section 73, means a person under the age of 18 years.
“inspector” means any inspector of taxes,
F369. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“the principal Act” means the Income and Corporation Taxes Act F3101988,
F575“the relevant trustees”, in relation to a settlement, shall be construed in accordance with section 7(9) of this Act.
“return” includes any statement or declaration under the Taxes Acts,
F498“the Special Commissioners Regulations” means the Special Commissioners (Jurisdiction and Procedure) Regulations 1994,
F460“successor”, in relation to a person who has made and delivered a return under section 12AA of this Act, and “predecessor” and “successor”, in relation to the successor of such a person, shall be construed in accordance with section 12AC(6) of this Act;
“tax”, where neither income tax nor capital gains tax nor corporation tax F312nor development land tax is specified, means any of those taxes F313except that in sections 20, 20A, 20B, 20C and 20D it does not include development land tax,
C210“the Taxes Acts” means this Act and—
F316“the 1992 Act ” means the Taxation of Chargeable Gains Act 1992
C211“trade” includes every trade, manufacture, adventure or concern in the nature of trade .
2
For the purposes of this Act, a person shall be deemed not to have failed to do anything required to be done within a limited time if he did it within such further time, if any, as the Board or the Commissioners or officer concerned may have allowed; and where a person had a reasonable excuse for not doing anything required to be done he shall be deemed F317not to have failed to do it unless the excuse ceased and, after the excuse ceased, he shall be deemed not to have failed to do it if he did it without unreasonable delay after the excuse had ceased:
F318. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4613
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
For the purposes of this Act, the amount of tax covered by any assessment shall not be deemed to be finally determined until that assessment can no longer be varied, whether by any Commissioners on appeal or by the order of any court.
PART XII GENERAL
119 Commencement and construction.
1
This Act shall come into force for all purposes on 6th April 1970 to the exclusion of the corresponding enactments repealed by the principal Act.
2
This Act, and the repeals made by the principal Act, have effect subject to Schedule 4 to this Act.
3
This Act, so far as it relates to income tax or corporation tax, shall be construed as one with the principal Act.
4
F3215
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
120 Short title.
This Act may be cited as the Taxes Management Act 1970.
SCHEDULES
SCHEDULE 1M11FORMS OF DECLARATIONS
1964(M) Sch.1; 1965 Sch.X 16.
PART I GENERAL AND SPECIAL COMMISSIONERS AND OTHERS
Finance Act 1975 s.57(2)(3)but not so as to invalidate declarations made before the passing of that Act.
“I, A.B., do solemnly declare that I will impartially and to the best of my ability execute [the duties of my office F322] and that I will not disclose any information received by me in the execution of [those duties F322] except for the purposes of [those duties F322] or for the purposes of any prosecution for an offence relating to [inland revenue F322] or in such other cases as may be required by law.”
PART II COMMISSIONERS OF INLAND REVENUE
“I, A.B., do solemnly declare that I will not disclose any information received by me in the execution of my duties except for the purposes of those duties or for the purposes of any prosecution for an offence relating to inland revenue, or in such other cases as may be required by law.”
PART III INSPECTORS, COLLECTORS AND OTHER OFFICERS
“I, A.B., do solemnly declare that I will not disclose any information received by me in the execution of the duties which may from time to time be assigned to me by the Board of Inland Revenue except for the purposes of my duties, or to the Board of Inland Revenue or in accordance with their instructions, or for the purposes of any prosecution for an offence relating to inland revenue, or in such other cases as may be required by law.”
F462SCHEDULE 1A Claims etc. not included in returns
Sch. 1A inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 35; S.I. 1998/3173, art. 2
Preliminary
1
In this Schedule—
“claim” means a claim, election or notice as respects which this Schedule applies;
“partnership claim” means a claim made in accordance with section 42(6)(b) of this Act;
“profits” has the same meaning as in section 42 of this Act;
“relevant partner”, in relation to a partnership claim, means any person who was a partner at any time during the period in respect of which the claim is made;
“successor”, in relation to a person who—
- a
has made a partnership claim, but
- b
is no longer a partner or is otherwise no longer available,
means such other partner who may at any time be nominated for the purposes of this paragraph by the majority of the partners at that time, and “predecessor” and “successor”, in relation to a person so nominated, shall be construed accordingly.
- a
Making of claims
2
1
Subject to any provision in the Taxes Acts for a claim to be made to the Board, every claim shall be made to an officer of the Board.
2
No claim requiring the repayment of tax shall be made unless the claimant has documentary proof that the tax has been paid by deduction or otherwise.
3
A claim shall be made in such form as the Board may determine.
4
The form of claim shall provide for a declaration to the effect that all the particulars given in the form are correctly stated to the best of the information and belief of the person making the claim.
5
The form of claim may require—
a
a statement of the amount of tax which will be required to be discharged or repaid in order to give effect to the claim;
F580b
such information as is reasonably required for the purpose of determining whether and, if so, the extent to which the claim is correct;
bb
the delivery with the claim of such accounts, statements and documents, relating to information contained in the claim, as are reasonably required for the purpose mentioned in paragraph (b) above; and
c
any such particulars of assets acquired as may be required in a return by virtue of section 12 of this Act.
6
In the case of a claim made by or on behalf of a person who is not resident, or who claims to be not resident or not ordinarily resident or not domiciled, in the United Kingdom, an officer of the Board or the Board may require a statement or declaration in support of the claim to be made by affidavit.
F579Keeping and preserving of records
Sch. 1A para. 2A and cross-heading inserted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), Sch. 20 para. 2
2A
1
Any person who may wish to make a claim in relation to a year of assessment or other period shall—
a
keep all such records as may be requisite for the purpose of enabling him to make a correct and complete claim; and
b
shall preserve those records until the end of the relevant day.
2
In relation to a claim, the relevant day for the purposes of sub-paragraph (1) above is whichever of the following is the latest, namely—
a
where enquiries into the claim or any amendment of the claim are made by an officer of the Board, the day on which, by virtue of paragraph 7(4) below, those enquiries are treated as completed; and
b
where no enquiries into the claim or any amendment of the claim are so made, the day on which such an officer no longer has power to make such enquiries.
3
The duty under sub-paragraph (1) above to preserve records may be discharged by the preservation of the information contained in them; and where the information is so preserved a copy of any document forming part of the records shall be admissible in evidence in any proceedings before the Commissioners to the same extent as the records themselves.
4
Any person who fails to comply with sub-paragraph (1) above in relation to any claim which is made for a year of assessment or accounting period shall be liable to a penalty not exceeding £3,000.
Amendments of claims
3
1
Subject to sub-paragraph (2) below—
a
at any time before the end of the period of nine months beginning with the day on which a claim is made, an officer of the Board may by notice to the claimant so amend the claim as to correct any obvious errors or mistakes in the F581claim (whether errors of principle, arithmetical mistakes or otherwise); and
b
at any time before the end of the period of twelve months beginning with the day on which the claim is made, the claimant may amend his claim by notice to an officer of the Board.
2
No amendment of a claim may be made under sub-paragraph (1) above at any time during the period—
a
beginning with the day on which an officer of the Board gives notice of his intention to enquire into the claim, and
b
ending with the day on which the officer’s enquiries into the claim are completed.
Giving effect to claims and amendments
4
1
F582Subject to sub-paragraphs (1A) and (3) below and to any other provision in the Taxes Acts which otherwise provides, an officer of the Board or the Board shall, as soon as practicable after a claim other than a partnership claim is made, or such a claim is amended under paragraph 3 above, give effect to the claim or amendment by discharge or repayment of tax.
F5831A
In relation to a claim which would otherwise fall to be taken into account in the making of deductions or repayments of tax under section 203 of the principal Act, sub-paragraph (1) above shall apply as if for the word “shall” there were substituted the word “may”.
2
F584Subject to sub-paragraph (3) below, an officer of the Board or the Board shall, as soon as practicable after a partnership claim is made, or such a claim is amended under paragraph 3 above, give effect to the claim or amendment, as respects each of the relevant partners, by discharge or repayment of tax.
F5853
Where any such claim or amendment as is mentioned in sub-paragraph (1) or (2) above is enquired into by an officer of the Board—
a
that sub-paragraph shall not apply until the day on which, by virtue of paragraph 7(4) below, the officer’s enquiries are treated as completed; but
b
the officer may at any time before that day give effect to the claim or amendment, on a provisional basis, to such extent as he thinks fit.
Power to enquire into claims
5
1
An officer of the Board may enquire into—
a
a claim made by any person, or
b
any amendment made by any person of a claim made by him,
if, before the end of the period mentioned in sub-paragraph (2) below, he gives notice in writing of his intention to do so to that person or, in the case of a partnership claim, any successor of that person.
F5862
The period referred to in sub-paragraph (1) above is whichever of the following ends the latest, namely—
a
the period ending with the quarter day next following the first anniversary of the day on which the claim or amendment was made;
b
where the claim or amendment relates to a year of assessment, the period ending with the first anniversary of the 31st January next following that year; and
c
where the claim or amendment relates to a period other than a year of assessment, the period ending with the first anniversary of the end of that period;
and the quarter days for the purposes of this sub-paragraph are 31st January, 30th April, 31st July and 31st October.
3
A claim or amendment which has been enquired into under sub-paragraph (1) above shall not be the subject of—
a
a further notice under that sub-paragraph; or
b
if it is subsequently included in a return, a notice under section 9A(1), 11AB(1) or 12AC(1) of this Act.
Power to call for documents for purposes of enquiries
6
1
This paragraph applies where an officer of the Board gives notice under paragraph 5 above to any person (the claimant) of his intention to enquire into—
a
a claim made by the claimant, or
b
any amendment made by the claimant of such a claim.
2
For the purpose of enquiring into the claim or amendment, the officer may at the same or any subsequent time by notice in writing require the claimant, within such time (which shall not be less than 30 days) as may be specified in the notice—
a
to produce to the officer such documents as are in the claimant’s possession or power and as the officer may reasonably require for the purpose of determining whether and, if so, the extent to which the claim or amendment is incorrect, and
b
to furnish the officer with such accounts or particulars as he may reasonably require for that purpose.
3
Subsections (3) to (11) of section 19A of this Act apply for the purposes of this paragraph as they apply for the purposes of that section; and those subsections as so applied shall have effect as if any reference to subsection (2) of that section were a reference to sub-paragraph (2) above.
4
Where this paragraph applies in relation to a partnership claim, any reference in this paragraph to the claimant includes a reference to any predecessor or successor of his.
Amendments of claims where enquiries made
7
1
This paragraph applies where an officer of the Board gives notice under paragraph 5(1) above to any person (the claimant) of his intention to enquire into—
a
a claim made by the claimant, or
b
any amendment made by the claimant of such a claim.
2
At any time in the period of 30 days beginning with the day on which the officer’s enquiries are completed, the claimant may so amend his claim—
a
as to eliminate or make good any excess or deficiency which, on the basis of the conclusions stated in the officer’s notice under sub-paragraph (4) below, is an excess or deficiency which could be made good or eliminated under sub-paragraph (3) below; or
b
as to give effect to any amendments to the claim which he has notified to the officer.
3
If, at any time in the period of 30 days beginning immediately after the period mentioned in sub-paragraph (2) above, the officer is of opinion that—
a
the claimant’s claim is excessive or insufficient, and
b
in a case falling within sub-paragraph (1)(b) above, the excess or deficiency is attributable (wholly or partly) to the claimant’s amendment,
the officer may by notice to the claimant so amend the claim as to eliminate or make good the excess or deficiency or, where paragraph (b) above applies, so much of the excess or deficiency as is so attributable.
4
Subject to sub-paragraph (5) below, the officer’s enquiries shall be treated as completed at such time as he by notice—
a
informs the claimant that he has completed his enquiries, and
b
states his conclusions as to the amount which should be the amount of the claimant’s claim.
5
Subsections (6) and (7) of section 28A of this Act apply for the purposes of sub-paragraph (4) above as they apply for the purposes of subsection (5) of that section.
6
Where this paragraph applies in relation to a partnership claim, any reference in this paragraph to the claimant includes a reference to any predecessor or successor of his.
Giving effect to such amendments
8
1
An officer of the Board or the Board shall, within 30 days of a claim other than a partnership claim being amended under paragraph 7(2) or (3) above, give effect to the amendment by making such adjustment as may be necessary, whether—
a
by way of assessment on the claimant, or
b
by discharge of tax or, on proof to the satisfaction of the officer or the Board that any tax has been paid by the claimant by deduction or otherwise, by repayment of tax.
2
An officer of the Board or the Board shall, within 30 days of a partnership claim being amended under paragraph 7(2) or (3) above, give effect to the amendment, as respects each of the relevant partners, by making such adjustment as may be necessary, whether—
a
by way of assessment on the partner, or
b
by discharge of tax or, on proof to the satisfaction of the officer or the Board that any tax has been paid by the partner by deduction or otherwise, by repayment of tax.
3
An assessment made under sub-paragraph (1) or (2) above shall not be out of time if it is made within the time mentioned in that sub-paragraph.
Appeals against such amendments
9
1
An appeal may be brought against an amendment made under paragraph 7(3) above by giving written notice to the officer within 30 days of the amendment being made.
2
Where, in the case of such an appeal, the issues arising include—
a
any question arising under section 278 of the principal Act (personal reliefs for non-residents);
b
any question of residence, ordinary residence or domicile; or
c
the question whether a fund is one to which section 615(3) of that Act applies (pension funds for service abroad),
the time for bringing the appeal shall be three months from the making of the amendment under paragraph 7(3) above.
3
On an appeal under this paragraph, the Commissioners may vary the amendment appealed against whether or not the variation is to the advantage of the appellant.
4
Where an amendment made under paragraph 7(3) above is varied, whether by the Commissioners or by the order of any court, paragraph 8 above shall (with the necessary modifications) apply in relation to the variation as it applied in relation to the amendment.
SCHEDULE 2 JURISDICTION IN APPEALS ON CLAIMS
Appeal from inspector
1
1
Except as otherwise provided by the following provisions of this Schedule, or any other provision of the Taxes Acts, an appeal against F463an amendment of a claim shall lie to the General Commissioners, but the appellant may elect to bring the appeal before the Special Commissioners instead of the General Commissioners.
1A
An election under sub-paragraph (1) above shall be disregarded if—
a
the appellant and F464the officer of the Board agree in writing, at any time before the determination of the appeal, that it is to be disregarded; or
b
the General Commissioners have given a direction under sub-paragraph (1C) below and have not revoked it.
1B
At any time before the determination of an appeal in respect of which an election has been made under sub-paragraph (1) above, F464the officer of the Board after giving notice to the appellant may refer the election to the General Commissioners.
1C
On any such reference the Commissioners shall, unless they are satisfied that the appellant has arguments to present or evidence to adduce on the merits of the appeal, direct that the election be disregarded.
1D
If, at any time after the giving of a direction under sub-paragraph (1C) above (but before the determination of the appeal) the General Commissioners are satisfied that the appellant has arguments to present or evidence to adduce on the merits of the appeal, they shall revoke the direction.
1E
Any decision to give a direction under sub-paragraph (1C) or revoke such a direction under sub-paragraph (1D) above shall be final F323.]
2
If an appeal to either body of Commissioners is pending against an assessment on the appellant which relates to the same source of income as that to which the claim relates, the appeal on the claim shall lie to that body of Commissioners.
2
1
Appeal F465against an amendment of a claim under any provision in column 1 of the Table below shall be to the General Commissioners, and paragraph 1 of this Schedule shall not apply.
2
An appeal F465against an amendment of a claim under any provision in column 2 of the said Table shall be to the Special Commissioners, and paragraph 1 of this Schedule shall not apply.
1 | 2 |
|---|---|
Appeal exclusively to General Commissioners | Appeal exclusively to Special Commissioners |
In the principal Act— | In the principal Act— |
Chapter [F324I of Part VII ] | section [F324121(1), (2) ] |
section [F324351(5) ] | section 310 |
Schedule [F3242 ] | F325. . . |
section [F324441(3) ] | |
section [F324459 ] | |
section [F324460 ] | |
section [F324467 ] | |
section [F324484 ] | |
section [F324527 ] | |
section [F324534 ] | |
section [F324536 ] | |
section [F324538 ] | |
Chapter I of Part XVIII |
F466Supplemental
Sch. 2 para. 3 and cross-heading substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 36(3); S.I. 1998/3173, art. 2
3
Any reference in this Schedule to an amendment of a claim is a reference to such an amendment made under paragraph 6(3) of Schedule 1A to this Act.
SCHEDULE 3RULES FOR ASSIGNING PROCEEDINGS TO COMMISSIONERS
Income and Corporation Taxes Act 1988 Sch. 29 para. 32.
Repealed by Finance Act 1988 s. 148and Sch. 14 Part Vwith effect from 6 April 1988.
Finance Act 1989 s. 160(6).
Finance Act 1989 s. 168(8).Previously
“section 100(4)”.
Finance (No. 2) Act 1975 s.66(2)in relation to appeals and proceedings after31July1975.
A development land tax provision added byDevelopment Land Tax Act 1976 Sch.8 para.34. Development Land Tax Act 1976repealed byFinance Act 1985 s.98(6)andSch.27 Part X.
Finance Act 1976 Sch.9 para.11for1977—78et seq.
Finance (No. 2) Act 1975 s.66(3)in relation to proceedings after31July1975.
Words omitted repealed byFinance (No. 2) Act 1975 s.75andSch.14 Part IVwith effect from1August1975.
Words omitted repealed byFinance Act 1972 ss.111and134, Sch.24 para.14andSch.28 Part VIfor1973—74et seq.
Finance Act 1972 s.111andSch.24 para.14for1973—74et seq.
Finance (No.2) Act 1975 s.66(3), (4)in relation to appeals and proceedings after31July1975.
Income and Corporation Taxes Act 1988 Sch. 29 para. 32.
Finance Act 1990 s. 164and Sch. 1 para. 1(4).Previously
“section 81 of the Capital Allowances Act 1968”.
Sch. 3 para. 3 applied (6.4.1993) by S.I. 1993/744, reg. 11(3)
SeeIncome Tax (Employments) Regulations 1973 (S.I. 1973 No.334) regn.10(3)—appeal against coding—andregn.48(3)—appeal against assessment underSch.E (inPart III Vol.5).
Description of proceedings | Place given by these rules |
|---|---|
Income tax and capital gains tax | |
| The place where the trade, profession or vocation is carried on, or in which the head office or principal place of business is situated. |
| |
Subject to the right of election for place of residence, the place of employment or such other place as may be assigned instead by regulations under section F326203 of the principal Act C213. | |
| The place where the property is situated. |
| If the appellant or other party to the proceedings (not being an inspector or the Board) is carrying on a trade, profession or vocation, then, subject (in the case of an appeal) to the right of election for place of residence, the place in which the trade, profession or vocation is carried on, or in which the head office or principal place of business is situated. If the appellant or other party is employed and does not carry on a trade, profession or vocation, then, subject (in the case of an appeal) to the right of election for place of residence, the place of employment. In any other case, the place where the appellant or other party ordinarily resides F330. |
| |
The place where the employees concerned (or most of them) are employed. | |
| The place where the appellant or other party to the proceedings (not being an inspector or the Board) ordinarily F333resides. F334. . . |
Corporation tax, etc. | |
| The place where the company or other body concerned carries on its trade or business, or in which its head office or principal place of business is situated, or where it resides. |
The Place where the company concerned carries on its trade or business, or in which its head office or principal place of business is situated, or where it resides. | |
Rules 3 and 5 have effect subject to rule 4 above.
Rules 7 and 8 have effect to the exclusion of any other rules.
Where under rules 3 and 5 above a right of election for the place of residence is provided in column 2 above, the appellant may, by notice in writing to the inspector or the Board (given not later than the notice of appeal), elect for the place where he ordinarily F337resides.
F337If the place given by any of the rules in this Schedule is outside the United Kingdom, the Board may give directions, which may be either general or addressed to a particular occasion, to meet the case.
The rules in this Schedule have effect subject to sections F338102, 113(5), 263(5) and (6), 343(10) and 783(9) of the principal Act, to paragraph 22 of Schedule 7 to the Income and Corporation Taxes Act 1970 and to F339section 151 of the Capital Allowances Act 1990 (all of which relate to proceedings to which more than one taxpayer may be a party) and to any other express provisions in the Taxes Acts.
F590SCHEDULE 3ZCCT Payment plans for tax on certain transactions with EEA residents
Sch. 3ZC inserted (retrospective and with effect in accordance with Sch. 7 para. 4(1)(a) of the amending Act) by Finance Act 2020 (c. 14), Sch. 7 para. 2
Introduction
1
This Schedule makes provision enabling a company that is liable to pay qualifying corporation tax for an accounting period to defer payment of the tax by entering into a CT payment plan.
Qualifying corporation tax
2
1
For the purposes of this Schedule a company is liable to pay qualifying corporation tax for an accounting period if CT1 is greater than CT2 where—
CT1 is the corporation tax which the company is liable to pay for the accounting period, and
CT2 is the corporation tax which the company would be liable to pay for the accounting period if any gains, credits, losses or debits arising in respect of qualifying transactions of the company were ignored.
(CT2 will be zero if the company would not be liable to pay any corporation tax for the period).
2
The amount of qualifying corporation tax which the company is liable to pay is the difference between CT1 and CT2.
Qualifying transactions
3
1
For the purposes of this Schedule each of the following is a qualifying transaction of a company (“the company concerned”)—
a
a disposal within sub-paragraph (2),
b
a transaction within sub-paragraph (3),
c
a transaction within sub-paragraph (4), and
d
a transfer within sub-paragraph (5).
2
A disposal is within this sub-paragraph if—
a
it is a disposal by the company concerned of an asset,
b
it is a disposal to a company (“the transferee”) that at the time of the disposal is resident outside the United Kingdom in an EEA state, and
c
it is a disposal to which section 139 or 171 of TCGA 1992 would apply were the transferee resident at the time of the disposal in the United Kingdom instead.
3
A transaction is within this sub-paragraph if—
a
it is a transaction, or the first in a series of transactions, as a result of which the company concerned is directly or indirectly replaced as a party to a loan relationship by another company (“the transferee”),
b
at the time of the transaction the transferee is resident outside the United Kingdom in an EEA state, and
c
it is a transaction to which section 340(3) of CTA 2009 would apply were the transferee resident at the time of the transaction in the United Kingdom instead.
4
A transaction is within this sub-paragraph if—
a
it is a transaction, or the first in a series of transactions, as a result of which the company concerned is directly or indirectly replaced as a party to a derivative contract by another company (“the transferee”),
b
at the time of the transaction the transferee is resident outside the United Kingdom in an EEA state, and
c
it is a transaction to which section 625(3) of CTA 2009 would apply were the transferee resident at the time of the transaction in the United Kingdom instead.
5
A transfer is within this sub-paragraph if—
a
it is a transfer from the company concerned of an intangible fixed asset,
b
it is a transfer to a company (“the transferee”) that immediately after the transfer is resident outside the United Kingdom in an EEA state, and
c
it is a transfer to which section 775(1) of CTA 2009 would apply were the transferee resident immediately after the transfer in the United Kingdom instead.
6
In this Schedule “transferee”, in relation to a qualifying transaction of a company, means the transferee referred to in sub-paragraph (2), (3), (4) or (5) (as the case may be).
Eligibility to enter a CT payment plan
4
1
A company that is liable to pay qualifying corporation tax for an accounting period may enter into a CT payment plan in respect of the tax in accordance with this Schedule.
2
The CT payment plan may relate to—
a
all of the qualifying corporation tax that the company is liable to pay for the accounting period, or
b
only part of the qualifying corporation tax that the company is liable to pay for the accounting period.
3
In this Schedule “deferred tax”, in relation to a CT payment plan, means the qualifying corporation tax to which the plan relates.
Application to enter a CT payment plan
5
A company that is liable to pay qualifying corporation tax for an accounting period may enter into a CT payment plan in respect of the tax only if—
C257a
an application to enter into the plan is made to HMRC before the end of the period of 9 months beginning immediately after the accounting period, and
b
the application contains details of all the matters which are required by paragraph 7 to be specified in the plan.
Entering into a CT payment plan
6
1
A company enters into a CT payment plan if—
a
the company agrees to pay, and an officer of Revenue and Customs agrees to accept payment of, the deferred tax in accordance with paragraphs 9 to 12,
b
the company agrees to pay interest on the deferred tax in accordance with paragraph 8(3) and (5), and
c
the plan meets the requirements of paragraph 7 as to the matters that must be specified in it.
2
The CT payment plan may, in the circumstances mentioned in sub-paragraph (3), contain appropriate provision regarding security for HMRC in respect of the payment of the deferred tax.
3
Those circumstances are where an officer of Revenue and Customs considers that agreeing to accept payment of the deferred tax in accordance with paragraphs 9 to 12 would present a serious risk as to collection of the tax in the absence of provision regarding security in respect of its payment.
4
A CT payment plan is void if any information furnished by the company in connection with the plan does not fully and accurately disclose all facts and considerations material to the decision of the officer of Revenue and Customs to accept payment of the deferred tax in accordance with paragraphs 9 to 12.
Content of CT payment plan
7
1
A CT payment plan entered into by a company must—
a
specify the accounting period to which the plan relates (“the accounting period concerned”),
b
specify the amount of qualifying corporation tax which, in the company's opinion, is payable by it in respect of the accounting period concerned,
c
specify the amount of the deferred tax,
d
identify each qualifying transaction of the company in respect of which gains or credits arose in the accounting period concerned, and
e
specify in relation to each of those qualifying transactions—
i
the name of the transferee,
ii
the EEA state in which the transferee was resident at the time of the transaction, and
iii
the amount of the deferred tax that is attributable to the transaction.
2
The amount of the deferred tax that is attributable to a qualifying transaction of the company in respect of which a gain or credit arose in the accounting period concerned is—
where—
A is the gain or credit that arose in the accounting period concerned in respect of the qualifying transaction,
B is the total gains or credits that arose in the accounting period concerned in respect of all qualifying transactions of the company,
T is the amount of the deferred tax.
Effect of CT payment plan
8
1
This paragraph applies where a CT payment plan is entered into by a company in accordance with this Schedule.
2
As regards when the deferred tax is payable—
a
the CT payment plan does not prevent the deferred tax becoming due and payable under section 59D or 59E, but
b
the Commissioners for Her Majesty's Revenue and Customs—
i
may not seek payment of the deferred tax otherwise than in accordance with paragraphs 9 to 12;
ii
may make repayments in respect of any amount of the deferred tax paid, or any amount paid on account of the deferred tax, before the CT payment plan is entered into.
3
As regards interest—
a
the deferred tax carries interest in accordance with Part 9 as if the CT payment plan had not been entered into, and
b
each time a payment is made in accordance with paragraphs 9 to 12, it is to be paid together with any interest payable on it.
4
As regards penalties, the company will be liable to penalties for late payment of the deferred tax only if it fails to make payments in accordance with paragraphs 9 to 12 (see item 6ZAA of the Table at the end of paragraph 1 of Schedule 56 to the Finance Act 2009).
5
Any of the deferred tax which is for the time being unpaid may be paid at any time before it becomes payable under paragraphs 9 to 12 together with interest payable on it to the date of payment.
The payment method: instalments
9
1
Where a CT payment plan is entered into by a company, the deferred tax is due in 6 instalments of equal amounts as follows—
a
the first instalment is due on the first day after the period of 9 months beginning immediately after the end of the accounting period to which the plan relates, and
b
the other 5 instalments are due one on each of the first 5 anniversaries of that day.
2
But see paragraphs 10 to 12 for circumstances in which all or part of the outstanding balance of the deferred tax becomes due otherwise than by those instalments.
The payment method: all of outstanding balance due
10
1
Where at any time after a CT payment plan is entered into by a company an event mentioned in sub-paragraph (2) occurs the outstanding balance of the deferred tax is due on the date on which the next instalment of that tax would otherwise be due.
2
The events are—
a
the company becoming insolvent or entering administration;
b
the appointment of a liquidator in respect of the company;
c
an event under the law of a country or territory outside the United Kingdom corresponding to an event in paragraph (a) or (b);
d
the company failing to pay any amount of the deferred tax for a period of 12 months after the date on which the amount becomes due;
e
the company ceasing to be within the charge to corporation tax.
All of outstanding balance attributable to particular qualifying transaction due
11
1
This paragraph applies where—
a
a CT payment plan is entered into by a company,
b
during the instalments period a trigger event occurs in relation to a qualifying transaction identified in the plan, and
c
a trigger event has not previously occurred in relation to that qualifying transaction during the instalments period.
2
A trigger event occurs in relation to a qualifying transaction if the transferee ceases to be resident in an EEA state and, on so ceasing, does not become resident another EEA state.
3
A trigger event occurs in relation to a qualifying transaction if the company and the transferee cease to be members of the same group as one another.
4
A trigger event occurs in relation to a qualifying transaction within sub-paragraph (2) or (5) of paragraph 3 if the transferee disposes of the asset that is the subject of the transaction.
5
A trigger event occurs in relation to a qualifying transaction within sub-paragraph (3) or (4) of paragraph 3 if the transferee ceases to be a party to the loan relationship or derivative contract concerned.
6
On the occurrence of the trigger event an amount of the deferred tax is due.
7
The amount due is—
where—
“A” is the amount of the deferred tax that is attributable to the qualifying transaction (see paragraph 7(2)),
“B” is the amount of the deferred tax that has previously become due under paragraph 12 by reason of a partial trigger event occurring in relation to the qualifying transaction,
“O” is the amount of the deferred tax that is outstanding at the time of the trigger event, and
“T” is the amount of the deferred tax.
8
In this paragraph “the instalments period” means the period—
a
beginning with the time the CT payment plan is entered into, and
b
ending with the day on which the final instalment of the deferred tax is due under paragraph 9.
Part of outstanding balance attributable to particular qualifying transaction due
12
1
This paragraph applies where—
a
a CT payment plan is entered into by a company,
b
during the instalments period a partial trigger event occurs in relation to a qualifying transaction listed in the plan, and
c
a trigger event has not previously occurred in relation to that qualifying transaction during the instalments period.
2
A partial trigger event occurs in relation to a qualifying transaction within sub-paragraph (2) of paragraph 3 if the transferee disposes of part (but not all) of the asset that is the subject of the transaction.
Section 21(2)(b) of TCGA 1992 (meaning of part disposal of an asset) applies for the purposes of this sub-paragraph as it applies for the purposes of that Act.
3
A partial trigger event occurs in relation to a qualifying transaction within sub-paragraph (3) or (4) of paragraph 3 if there is a disposal by the transferee of a right or liability under the loan relationship or derivative contract concerned which amounts to a related transaction (as defined in section 304 or 596 of CTA 2009 as the case may be).
4
A partial trigger event occurs in relation to a qualifying transaction within sub-paragraph (5) of paragraph 3 if the transferee enters into a subsequent transaction which results in a reduction in the accounting value of the intangible fixed asset that is the subject of the qualifying transaction but does not result in the intangible fixed asset ceasing to be recognised in the transferee's balance sheet.
5
In relation to an intangible fixed asset that has no balance sheet value (or no longer has a balance sheet value) sub-paragraph (4) applies as if, immediately before the subsequent transaction, it did have a balance sheet value.
6
On the occurrence of the partial trigger event an amount of the deferred tax is due.
7
The amount due is the amount that is just and reasonable having regard to the amount that would have been due had a trigger event occurred in relation to the qualifying transaction instead.
8
In this paragraph “the instalments period” and “trigger event” have the same meaning as in paragraph 11.
F578SCHEDULE 3A Electronic lodgement of tax returns, etc.
Sch. 3A inserted (1.5.1995) by Finance Act 1995 (c. 4), Sch. 28 para. 2
Part I Tax returns: general
The basic rule
1
1
Sub-paragraph (2) below applies where a person is—
a
required by a notice to which this Schedule applies, or
b
subject to any other requirement to which this Schedule applies,
to deliver or make a return to an officer of the Board or to the Board.
2
The requirement to deliver or make the return shall be treated as fulfilled by the person subject to the requirement if—
a
information is transmitted electronically in response to that requirement; and
b
each of the conditions in Part III of this Schedule is met with respect to that transmission.
3
Sub-paragraphs (4) and (5) below apply where the requirement to deliver or make the return is fulfilled by virtue of sub-paragraph (2) above.
4
Any requirement—
a
under any provision of Part II of this Act that the return include a declaration by the person making the return to the effect that the return is to the best of his knowledge correct and complete, or
b
under or by virtue of any other provision of the Taxes Acts that the return be signed or include any description of declaration or certificate,
shall not apply.
5
The time at which the requirement to deliver or make the return is fulfilled is the end of the day during which the last of the conditions in Part III of this Schedule to be met with respect to the transmission is met.
6
In sub-paragraph (2)(a) above “information” includes any self-assessment, partnership statement, particulars or claim.
Returns to which Schedule applies
2
1
This Schedule applies to a notice requiring a return to be delivered or made if—
a
the notice is given under any provision of the Taxes Acts or of regulations made under the Taxes Acts;
b
the provision is specified for the purposes of this Schedule by an order made by the Treasury; and
c
the notice is given after the day appointed by the order in relation to notices under the provision so specified.
2
This Schedule applies to any other requirement to deliver or make a return if—
a
the requirement is imposed by any provision of the Taxes Acts or of regulations made under the Taxes Acts;
b
the provision is specified for the purposes of this Schedule by an order made by the Treasury; and
c
the requirement is required to be fulfilled within a period beginning after the day appointed by the order in relation to the specified provision.
3
The power to make an order under this paragraph shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.
4
For the purposes of this Schedule, any reference to a requirement to deliver a return includes, in relation to regulations made under the principal Act, a reference to a requirement to render a return.
Part II Documents supporting certain tax returns
3
1
This paragraph applies where—
a
a person is required by a notice to which this Schedule applies to deliver a return to an officer of the Board;
b
the notice also requires any document other than the return (“a supporting document”) to be delivered;
c
the provision under which the notice is given requires the supporting document to be delivered with the return;
d
the notice states that the supporting document may be transmitted electronically; and
e
the requirement to deliver the return is fulfilled by virtue of paragraph 1(2) of this Schedule.
2
The requirement to deliver the supporting document shall be treated as fulfilled by the person subject to the requirement if—
a
information is transmitted electronically in response to that requirement; and
b
each of the conditions in Part III of this Schedule is met with respect to that transmission.
3
If information is not transmitted electronically in response to the requirement to deliver the supporting document, that requirement shall have effect as a requirement to deliver the document on or before the day which is the last day for the delivery of the return.
4
For the purposes of sub-paragraph (1)(b) above the reference to a document includes in particular a reference to any accounts, statements or reports.
5
Where the requirement to deliver the supporting document is fulfilled by virtue of sub-paragraph (2) above, the time at which it is fulfilled is the end of the day during which the last of the conditions in Part III of this Schedule to be met with respect to the transmission is met.
Part III The conditions
Approved persons
4
1
The first condition is that the transmission must be made by a person approved by the Board.
2
A person seeking approval under this paragraph shall be given notice of the grant or refusal of approval.
3
A person may be approved for the purpose of transmitting the information—
a
on behalf of another person or other persons; or
b
on his own behalf.
4
An approval under this paragraph may be withdrawn by notice with effect from such date as may be specified in the notice.
5
A notice refusing or withdrawing an approval shall state the grounds for the refusal or withdrawal.
6
A person who is refused approval or whose approval is withdrawn may appeal to the Special Commissioners against the refusal or withdrawal.
7
The appeal shall be made by notice given to the Board before the end of the period of 30 days beginning with the day on which notice of the refusal or withdrawal was given to the appellant.
8
The Special Commissioners shall not allow the appeal unless it appears to them that, having regard to all the circumstances, it is unreasonable for the approval to be refused or (as the case may be) withdrawn.
9
If the Special Commissioners allow an appeal by a person who has been refused approval, they shall specify the date from which the approval is to have effect.
Approved manner of transmission
5
1
The second condition applies if the person who makes the transmission is notified by the Board of any requirements for the time being applicable to him as to the manner in which transmissions are to be made by him or as to the manner in which any description of transmission is to be made by him.
2
The second condition is that the transmission must comply with the requirements so notified.
3
The requirements referred to include in particular requirements as to—
a
the hardware or type of hardware, or
b
the software or type of software,
to be used to make transmissions or a description of transmissions.
Content of transmission
6
The third condition is that the transmission must signify, in a manner approved by the Board, that before the transmission was made a hard copy of the information proposed to be transmitted was made and authenticated in accordance with Part IV of this Schedule.
Procedure for accepting electronic transmissions
7
1
The fourth condition is that the information transmitted must be accepted for electronic lodgement.
2
For the purposes of this Schedule, information is accepted for electronic lodgement if it is accepted under a procedure selected by the Board for the purposes of this Schedule.
3
The selected procedure may in particular consist of or include the use of specially designed software.
Part IV Hard copies of information transmitted
Provisions about making of hard copies
8
1
A hard copy is made in accordance with this Part of this Schedule if it is made under arrangements designed to ensure that the information contained in the hard copy is the information in fact transmitted.
2
A hard copy is authenticated in accordance with this Part of this Schedule if—
a
where the transmission is made in response to a requirement imposed by a notice under Part II of this Act to deliver a return, the hard copy is endorsed with a declaration by the relevant person that the hard copy is to the best of his knowledge correct and complete; and
b
in any other case, if the hard copy is signed by the relevant person.
3
In sub-paragraph (2) above “the relevant person” means—
a
where the transmission is made as mentioned in sub-paragraph (2)(a) above, the person who, but for paragraph 1(4)(a) of this Schedule, would have been required to make the declaration there mentioned;
b
in any other case, the person subject to the requirement to deliver or make the return or, in the case of a document other than a return, deliver the document.
Meaning of “hard copy”
9
In this Part of this Schedule “hard copy”, in relation to information held electronically, means a printed out version of that information.
Part V Status of information
Exercise of powers
10
1
Sub-paragraphs (2) to (5) below apply where information transmitted in response to a requirement to deliver or make a return is accepted for electronic lodgement.
2
An officer of the Board shall have all the powers that he would have had if the information accepted had been contained in a return delivered by post.
3
The Board shall have all the powers that they would have had if the information accepted had been contained in a return delivered by post.
4
Where the information is transmitted in response to a notice given under any provision of Part II of this Act, any power which, if the information had been contained in a return delivered by post, a person would have had under this Act to amend the return—
a
by delivering a document, or
b
by notifying amendments,
to an officer of the Board, shall have effect as if the power enabled that person to deliver a statement of amended information to the officer.
5
Any right that a person would have had, if the information transmitted had been contained in a return delivered by post, to claim that tax charged under an assessment was excessive by reason of some mistake or error in the return shall have effect as far as the claimant is concerned as if the information transmitted had been contained in a return delivered by post.
6
Where information transmitted in response to a requirement to deliver a document other than a return is accepted for electronic lodgement, an officer of the Board shall have all the powers that he would have had if the information had been contained in a document delivered by post.
7
This paragraph is subject to paragraph 11 of this Schedule.
Proceedings
11
1
Sub-paragraphs (2) to (4) below apply where—
a
a person is required by a notice to which this Schedule applies, or subject to any other requirement to which this Schedule applies, to deliver or make a return; and
b
that requirement is fulfilled by virtue of paragraph 1(2) of this Schedule.
2
A hard copy shown to have been made and authenticated in accordance with Part IV of this Schedule for the purposes of the transmission in question shall be treated for the purposes of any proceedings as if it were a return delivered or made in response to the requirement.
3
Sub-paragraph (4) below applies if no hard copy is shown to have been made and authenticated in accordance with Part IV of this Schedule for the purposes of the transmission in question.
4
A hard copy certified by an officer of the Board to be a true copy of the information transmitted shall be treated for the purposes of any proceedings in relation to which the certificate is given as if it—
a
were a return delivered or made in response to the requirement in question, and
b
contained any declaration or signature which would have appeared on a hard copy made and authenticated in accordance with Part IV of this Schedule for the purposes of the transmission.
5
Where—
a
a person is required by a notice to which this Schedule applies to deliver any document other than a return, and
b
that requirement is fulfilled by virtue of paragraph 3(2) of this Schedule,
sub-paragraphs (2) to (4) above shall apply as if any reference to a return delivered in response to the requirement were a reference to a document delivered in response to the requirement.
6
In this paragraph—
“hard copy” has the same meaning as in Part IV of this Schedule; and
“proceedings” includes proceedings before the General or Special Commissioners or any tribunal having jurisdiction by virtue of any provision of the Taxes Acts.
SCHEDULE 4 SAVINGS AND TRANSITORY PROVISIONS
Declaration of secrecy
1
1
Section 6(4) of this Act shall not apply to a person who, before 10th July 1964, made a declaration in any of the forms set out in Schedule 2 to the Income Tax Act 1952, or a declaration of secrecy in a form approved by the Board.
2
General or Special Commissioners or other persons who made declarations in the form in Part I of Schedule 1 to the Income Tax Management Act 1964, or in the form in Schedule 2 to the Income Tax Act 1952, before the coming into force of paragraph 16 of Schedule 10 to the Finance Act 1965 (which included in the form of declaration a reference to the new taxes imposed by that Act) shall be subject to the same obligations as to secrecy with respect to those taxes as they are subject to with respect to income tax.
3
The repeals made by the principal Act shall not alter the effect or validity of any declaration made before the commencement of this Act.
Information about interest paid or credited without deduction of tax by banks, etc.
2
A notice served under section 29 of the Income Tax Act 1952 (re-enacted in section 17 of this Act) on the Postmaster General before 1st October 1969 shall, if it has not been complied with before that date, be deemed to have been served on the Director of Savings; and section 17(1) of this Act shall, in its application to the National Savings Bank, have effect as if the reference to interest paid or credited by the Director of Savings included, as regards any period before the said date, a reference to interest paid or credited by the Postmaster General to depositors.
Assessments
3
1
Section 36 of this Act shall not apply to tax for any year before the year 1936—37.
2
Section 41 of this Act shall not apply to any assessment signed before 6th April 1965.
Claims
4
1
This paragraph has effect as respects relief under any enactment repealed by the principal Act, or repealed or terminated by any Act passed before that Act, so far as it remains in force after the commencement of this Act.
2
Section 42 of this Act shall apply to any such relief in like manner as section 9 of the Income Tax Management Act 1964 would have applied but for the passing of this Act, and nothing in the repeals made by the principal Act shall affect any enactment determining whether the claim is made to the inspector or the Board, or the Commissioners to whom an appeal lies on the claim.
5
An appeal, or other proceedings in the nature of an appeal, instituted on a claim, or proceedings in the nature of a claim, made before 6th April 1965 shall be continued before the same Commissioners notwithstanding that, under Schedule 2 to this Act or Schedule 2 to the Income Tax Management Act 1964, an appeal on the claim should have been made to some other Commissioners.
F4676
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Choice of Commissioners to hear proceedings
7
Neither section 44 of this Act nor any other provision in this Act shall apply to an appeal against an assessment signed, claim made, or other proceedings instituted, before 6th April 1965 so as to require the proceedings to be heard by Commissioners other than those who would have heard the proceedings if the Income Tax Management Act 1964 had not passed.
Settling of appeals by agreement
F3408
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest on tax
9
F3411
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
For the purposes of section 88 of this Act the due date for payment of so much of any surtax for the year 1965—66 as is attributable to subsection (1) of the said section 15 shall be taken to be 1st September 1967, instead of 1st January 1967.
Penalties, etc.
10
Section 98 of this Act shall have effect as if the Table contained in it (columns 1 and 2 of which correspond respectively to columns 2 and 3 of Schedule 6 to the Finance Act 1960) included, in the appropriate column, so far as they remained in force, the enactments and regulations mentioned in or added to the said Schedule 6 which were repealed or terminated by any Act passed before this Act.
11
Section 103(2) of this Act shall not apply to tax for any year before the year 1936—37.
12
The repeals made by the principal Act shall not affect proceedings for any offence punishable under section 505 of the Income Tax Act 1952 and committed before the repeal of the said section 505 by the Theft Act 1968, or, in Northern Ireland, by the Theft Act (Northern Ireland) 1969.
Northern Ireland
F34213
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Part V of this Act, and the repeal by the principal Act of the provisions corresponding to Part V of this Act, shall not apply to proceedings falling within paragraph 10(1) of Schedule 5 to the Income Tax Management Act 1964 (assessments, etc. for 1964—65 and earlier years).
Act wholly in force at 6.4.1970, see s. 119(1)