Taxes Management Act 1970

PART I U.K. ADMINISTRATION

1 Taxes under care and management of the Board. U.K.

(1) 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 .

(2) The Board shall appoint inspectors and collectors of taxes who shall act under the direction of the Board .

[F2 (2A) 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.]

(3) 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.

Textual Amendments

F1 Words relating to development land tax added by Development Land Tax Act 1976 (c. 24) Sch. 8 para. 1; Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54) s. 98(6), Sch. 27 Pt. X.

F2 S. 1(2A)(2B) inserted by Finance Act 1990 (c. 29), s. 104(1), (3) (and deemed always to have had effect)

Modifications etc. (not altering text)

C1 S. 1 extended (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. 6(2) (with ss. 108(5), 116(3), 165)

C2 For the application of this Act to petroleum revenue tax and supplementary petroleum duty see Oil Taxation Act 1975 (c. 22) s. 1, Sch. 2 para. 1(1)—Oil Taxation Acts.

C3 See also as to appointments etc. of officers, Inland Revenue Regulation Act 1890 (c. 21, SIF 63:1), s. 4.

C4 For the application of s. 1(3) to the special tax on banking deposits see Finance Act 1981 s. 134, Sch. 17 para. 18.

2 General Commissioners U.K.

(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 [F3 or 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 [F3 or Northern Ireland] shall be appointed by, and shall hold office during the pleasure of, the Lord Chancellor.

(3) General Commissioners for divisions in Scotland shall be appointed by, and shall hold office during the pleasure of, [F4 the Secretary of State], F5 ... .

(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.

[F6 (5) 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.

[F7 Subject to the preceding provisions of this subsection, the areas of the divisions shall be the same as immediately before the passing of this Act .]

(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.

Textual Amendments

F3 Added by Finance Act 1988 s. 134(1)(4) from 3 April 1989; Commencement order S.I. 1989 No. 473.

F4 Finance Act 1975 s. 57(1) from 15May 1975.

F5 Words omitted repealed by Finance Act 1975 s. 59(5), Sch. 13 Part II.

F6 S. 2(5) substituted (1.4.1994) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para. 2(1)(5)

F7 Words in s. 2(6) repealed by Finance Act 1988 s. 148, Sch. 14 Part IX on or after 3 April 1989; S.I. 1989/473

Modifications etc. (not altering text)

C5 See Finance Act 1973 s. 41 (boundaries of divisions specified by order made or having effect as if made under s. 2(6) not to be affected by changes in local government areas in England and Wales on 1 April 1974 or in Scotland on 16 May 1975)

3 Clerk to General Commissioners. U.K.

(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.

[F8 (2) 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) [F9 The 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 [F10 allowance] or gratuity, or make such provision for the payment of pension [F10 allowance] or gratuity to or in respect of any full-time clerk, as [F11 he may, with the approval of the Treasury, determine].

In this subsection “full-time clerk” means a clerk as regards whom [F11 the 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 .

(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.

Textual Amendments

F8 S. 3(2) substituted (1.4.1994) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para. 2(3)(5)

F9 Words in s. 3(3) substituted (1.4.1994) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para. 2(4)(a)(5)

F10 Words in s. 3(3) inserted by Superannuation Act 1972 (c.11), s. 26, Sch. 6 para. 77

F11 Words in s. 3(3) substituted (1.4.1994) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para. 2(4)(b)(c)(5)

Modifications etc. (not altering text)

C6 See also Finance Act 1972 s. 130—compensation for loss of office etc. by clerks on reorganisation of divisions.

[F12 4 Special Commissioners. U.K.

(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—

[F13 (a) 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.

(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.

(7) Officers and staff may be appointed under section 27 of the M1 Courts Act 1971 (court staff) for carrying out the administrative work of the Special Commissioners.]

Textual Amendments

F12 Ss. 4. 4A substituted (1.1.1985) by Finance Act 1984 (c. 43), s. 127, Sch. 22 para. 1; S.I. 1984/1836 (c. 45) (but not to affect the appointment of any person, who, immediately before the passing of Finance Act 1984, held office as a Special Commissioner)

F13 Courts and Legal Services Act 1990 (c. 41), s. 71(2), Sch. 10 para. 30

Modifications etc. (not altering text)

C7 See—Oil Taxation Act 1975 s. 1, Sch. 2 para. 1(1)—Oil Taxation Acts—for modification regarding petroleum revenue tax and supplementary petroleum duty; Finance Act 1981 s. 134, Sch. 17 para. 18 for the application of this provision to the special tax on banking deposits

Marginal Citations

M1 1971 c.23.

[F12 4A Deputy Special Commissioners. U.K.

(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.

(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.

(5) Notwithstanding the expiry of any period for which a person is appointed under this section, he may continue to act under the appointment for the purpose of continuing to deal with any matter with which he was concerned during that period.

(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.]

Textual Amendments

F12 Ss. 4. 4A substituted (1.1.1985) by Finance Act 1984 (c. 43), s. 127, Sch. 22 para. 1; S.I. 1984/1836 (c. 45) (but not to affect the appointment of any person, who, immediately before the passing of Finance Act 1984, held office as a Special Commissioner)

5 General and Special Commissioners. U.K.

(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.

F14 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F14 S. 5(2) repealed (E.W.) (30.3.1974) by Criminal Justice Act 1972 (c. 71) s. 64(2), Sch. 6 Pt. I; S.I. 1973 No. 1472 r. 2, Sch. 2; s. 5(2) repealed (S.) (22.12.1980) by Law Reform (Miscellaneous Provisions) (Scotland) Act 1980 (c. 55), s. 28(2), Sch. 3; S.I. 1980 No. 1726 (C. 74) (S. 148)

6 Declarations on taking office. U.K.

(1) Every person who is appointed to be—

(a) a General Commissioner or a Special Commissioner, or

F15 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) a member of the tribunal established under section [F16 706] 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.

Textual Amendments

F15 S. 6(1)(b) repealed by Finance Act 1982 s. 157, Sch. 22 Part X.

F16 Words in s. 6(1) substituted by Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para 32.

Modifications etc. (not altering text)

C8 As to savings, etc., in respect of disclosure in certain cases, see—Finance Act 1969 s. 58(3)—disclosure of information for statistical purposes.Finance Act 1972 s. 127—disclosure of information between revenue departments. Finance Act 1978 s. 77—disclosure to tax authorities in other member states ofEEC. Income and Corporation Taxes Act 1988 s. 816—relief for double taxation. Charities Act 1960 s. 9—disclosure to and by Charity Commissioners of information about charities. Social Security Pensions Act 1975 (c. 60), s. 56K—disclosure in connection with the registration of occupational and personal pension schemes. Child Benefit Act 1975 s. 10—disclosure of information to Secretary of State.

C9 See Finance Act 1989 s. 182—disclosure of information.

PART II U.K. RETURNS OF INCOME AND GAINS

Income tax U.K.

[F17 7 Notice of liability to income tax and capital gains tax. U.K.

(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) In the case of a person who is chargeable as mentioned in subsection (1) above as a trustee of a settlement, that subsection shall have effect as if the reference to a notice under section 8 of this Act were a reference to a notice under section 8A of this Act.

(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 income from 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.]

Textual Amendments

F17 S. 7 substituted (with effect as respects the year 1995-96 and subsequent years of assessment) by Finance Act 1994 (c. 9), s. 199(2)(3), Sch. 19 para. 1(1)(2); S.I. 1998/3173, art. 2

[F18 8 Personal return. U.K.

[F19 (1) 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.

(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, loss 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.]

Textual Amendments

F18 Ss 8, 8A, 9 substituted for ss, 8, 9 (with effect where a notice to deliver a return was, or falls to be, given after 5.4.1990) by Finance Act 1990 (c. 29), s. 90(1)(5)

F19 S. 8(1)-(1C) substituted for s. 8(1) (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 178(1); S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C10 S. 8 modified (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 3(6)(b), 289 (with ss. 60, 101(1), 171, 201(3))

C11 See—Finance Act 1974 s. 24—notice may require particulars of emoluments of certain employments etc. under non-residents duties performed for benefit of a person resident or trading etc., in the United Kingdom.Capital Gains Tax Act 1979 (c. 14, SIF 63:2) S. 5(5)and Sch. 1—return of small deposits and gains.Capital Allowances Act 1990 (c. 1, SIF 63:1) s. 140(3)—inclusion in returns of income of any claim for capital allowances.

[F18 8A Trustee’s return. U.K.

[F20 (1) For the purpose of establishing the amounts in which a trustee 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 the 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.]

(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.]

Textual Amendments

F18 Ss 8, 8A, 9 substituted for ss, 8, 9 (with effect where a notice to deliver a return was, or falls to be, given after 5.4.1990) by Finance Act 1990 (c. 29), s. 90(1)(5)

F20 S. 8A(1)(1A) substituted for s. 8A(1) (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 178(2); S.I. 1998/3173, art. 2

[F21 9 Returns to include self-assessment. U.K.

(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, on the basis of the information contained in the return, 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 the following provisions of 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.]

Textual Amendments

F21 S. 9 substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 179; S.I. 1998/3173, art. 2

[F22 9A Power to enquire into returns. U.K.

(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.]

Textual Amendments

F22 S. 9A inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 180; S.I. 1998/3173, art. 2

Corporation tax U.K.

[F23 10 Notice of liability to corporation tax. U.K.

(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 [F24 which, 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.]

Textual Amendments

F23 S. 10 substituted (with effect in respect of notices given for accounting periods ending after 31.3.1989) by Finance Act 1988 (c. 39), s. 121

F24 Words in s. 10(3) substituted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para.1

11 Return of profits. U.K.

(1) A company may be required by a notice served on the company by an F25 ... officer of the Board to deliver to the officer [F26 not later than the final day determined under subsection (4) below a return [F27 such information as may [F28 reasonably] be required in pursuance of the notice together with such accounts, statements and reports as may [F28 reasonably] be so required.

(1A) The information which a company may [F29 reasonably] 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 [F29 reasonably] be so required to supply are accounts, statements and reports which are so relevant.]]

[F30 (2) A notice under this section may require a return [F31 for] 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.]

[F32 (2A) 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) Every return under this section shall include a declaration [F33 by the person making the return] to the effect that the return is [F33 to the best of his knowledge] correct and complete .

[F34 (4) 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.

F35 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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 F36 ...

[F37 (8A) 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.]

Textual Amendments

F25 Words in s. 11(1) repealed (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 26 Pt. 5(23); S.I. 1998/3173, art. 2

F26 Finance (No. 2) Act 1987 (c. 51), s. 82(2); S.I. 1992/3066, art. 3

F27 Finance Act 1990 (c. 29), s. 91(2); S.I. 1992/3066, art. 3

F28 Word in s. 11(1) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 181(1); S.I. 1998/3173, art. 2

F29 Word in s. 11(1A) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 181(2); S.I. 1998/3173, art. 2

F30 Finance (No. 2) Act 1987 (c. 51), s. 82(3); S.I. 1992/3066, art. 3

F31 Finance Act 1990 (c. 29), s. 91(3); S.I. 1992/3066, art. 3

F32 S. 11(2A)(2B) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 181(3); S.I. 1998/3173, art. 2

F33 Finance Act 1990 s. 91(4), (8)with respect to any notice served on or after 26July 1990.

F34 S. 11(4)-(9) substituted for s. 11(4)-(6) by Finance (No. 2) Act 1987 (c. 51), s. 82(4); S.I. 1992/3066, art. 3

F35 Finance Act 1990 (c. 29), s. 91(5); S.I. 1992/3066, art. 3

F36 Finance Act 1990 (c. 29), s. 91(6); S.I. 1992/3066, art. 3

F37 Finance Act 1990 (c. 29), s. 91(7); S.I. 1992/3066, art. 3

Modifications etc. (not altering text)

C12 See—Finance (No. 2) Act 1987 (c. 51), ss. 82(2)(3)(4), 95(2)(3); Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 10(1); Finance Act 1990 (c. 29), s. 91 for modifications in the event of a notice being served after a day to be appointed.

F38 11A Notice of liability to capital gains tax. U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F38 S. 11A repealed (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 26 Pt. 5(23); S.I. 1998/3173, art. 2

[F39 11AA Return of profits to include self-assessment. U.K.

(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, on the basis of the information contained 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.]

Textual Amendments

F39 S. 11AA inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 182; S.I. 1998/3173, art. 2

[F40 11AB Power to enquire into return of profits. U.K.

(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.]

Textual Amendments

F40 S. 11AB inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 183; S.I. 1998/3173, art. 2

12 Information about chargeable gains. U.K.

F41 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) A notice under section 8 [F42 or 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—

F43 [(a) any assets exempted by the following provisions of the [F44 1992 Act], namely—

(i) section [F45 51(1)] (rights to winnings from pool betting, lotteries or games with prizes),

(ii) section [F46 121] (government non-marketable securities),

(iii) section [F47 263, 268 or 269] (passenger vehicles, decorations for valour or gallant conduct and foreign currency for personal expenditure)], or

(b) unless the amount or value of the consideration for its acquisition exceeded [F48 £6,000], any asset which is tangible movable property and is not within the exceptions in [F43 section [F49 262(6)]] of the said Act (terminal markets and currency), or

(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.

F50 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In this section “trading stock” has the meaning given by section [F51 100(2)] of the principal Act.

Textual Amendments

F41 S. 12(1) repealed (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 26 Pt. 5(23); S.I. 1998/3173, art. 2

F42 Finance Act 1990 s. 90(2)(b), (5) where a notice to deliver a return was, or falls to be given after 5April 1990.

F43 Capital Gains Tax Act 1979 (c. 14), s. 157(2), Sch. 7 paras. 1(2), 9for 1979-80et seq.

F44 Words in s. 12(2)(a) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 3(a) (with ss. 60, 101(1), 171, 201(3))

F45 Words in s. 12(2)(a)(i) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 3(b) (with ss. 60, 101(1), 171, 201(3))

F46 Words in s. 12(2)(a)(ii) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(3)(c) (with ss. 60, 101(1), 171, 201(3))

F47 Words in s. 12(2)(a)(iii) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(3)(d) (with ss. 60, 101(1), 171, 201(3))

F48 Finance Act 1989 s. 123in relation to assets acquired on or after 6April 1989. Previously “£3000”

F49 Words in s. 12(2)(b) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation and Chargeable Gains Act 1992 (c. 12) ss. 289, 290, Sch. 10 para. 2(3)(e) (with ss. 60, 101(1), 171, 201(3))

F50 S. 12(4) repealed (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 26 Pt. 5(23); S.I. 1998/3173, art. 2

F51 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 32.

Modifications etc. (not altering text)

C13 See Finance Act 1990 s. 39—power to call for a return in connection with claims for roll-over relief on disposal of shares to employee share ownership trusts.

[F52 Partnerships U.K.

Textual Amendments

F52 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. U.K.

(1) Where a trade, profession or business is carried on by two or more persons in partnership, for the purpose of facilitating—

(a) the assessment to income tax for a year of assessment, and

(b) the assessment to corporation tax for any period,

of each partner who is liable to be so assessed, an officer of the Board may act under subsection (2) or (3) below (or both).

(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 such accounts and statements 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.]

[F53 12AB Partnership return to include partnership statement. U.K.

(1) 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, has accrued to or has been sustained by the partnership for that period, and

(ii) 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, is equal to his share of that income, loss 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.]

Textual Amendments

F53 S. 12AB inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 185; S.I. 1998/3173, art. 2

[F54 12ABZAA Returns relating to LLP not carrying on business etc with view to profit U.K.

(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.]

Textual Amendments

F54 S. 12ABZAA inserted (retrospective) by Finance Act 2020 (c. 14), s. 104(1)(2) (with s. 104(3))

[F55 12AC Power to enquire into partnership return. U.K.

(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.]

Textual Amendments

F55 S. 12AC inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 186; S.I. 1998/3173, art. 2

[F56 European Economic Interest Groupings U.K.

Textual Amendments

F56 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. U.K.

(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 [F57 securing 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.]

Textual Amendments

F57 Words in s. 12A(2) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 2; S.I. 1998/3173, art. 2

[F58 Records U.K.

Textual Amendments

F58 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. U.K.

(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

(b) preserve those records until the end of whichever of the following is the later, namely—

(i) the day mentioned in subsection (2) below; and

(ii) where a return delivered by him is enquired into by an officer of the Board, the day on which, by virtue of section 28A(5) or 28B(5) of this Act, the officer’s enquiries are treated as completed.

(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 or, where a return is delivered by the person concerned after that date, the quarter day next following the first anniversary of the day on which the return is delivered;

and the quarter days for the purposes of this subsection are 31st January, 30th April, 31st July and 31st October.

(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) 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 the day mentioned in subsection (2) above all supporting documents relating to such items as are mentioned in paragraph (a)(i) or (ii) above.

(4) The duty under subsection (1) 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) Any person who fails to comply with subsection (1) above in relation to a year of assessment or accounting period shall be liable to a penalty not exceeding £3,000.

(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.]

[F59 Voluntary returns U.K.

Textual Amendments

F59 S. 12D and cross-heading inserted (retrospective) by Finance Act 2019 (c. 1), s. 87(1)(3) (with s. 87(4))

12D Returns made otherwise than pursuant to a notice U.K.

(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.]

Modifications etc. (not altering text)

C14 S. 12D power to amend conferred (retrospective) by Finance Act 2019 (c. 1), s. 87(3)(5)(b) (with s. 87(4))

PART III U.K. OTHER RETURNS AND INFORMATION

Modifications etc. (not altering text)

C15 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. U.K.

(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 F60 ... , 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, F61 ... , 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 F62 .

F63 [(3) 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.]

Textual Amendments

F60 Words omitted repealed by Finance Act 1970 (c. 24, SIF 63:1,2) s.36andSch.8 Part VII.

F61 Words repealed by Finance Act 1988 (c. 39, SIF 63:1,2) s. 148and Sch. 14 Part VIIIfor1990-91and subsequent years.

F62 SeeTaxes Management Act 1970 (c. 9, SIF 63:1) s.76—protection for certain trustees, agents and receivers who have made returns under s.13.

F63 Finance Act 1988 (c. 39 SIF 63:1,2) s. 123(1)with respect to notices given on or after 29July 1988.

14 Return of lodgers and inmates. U.K.

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.

[F64 15 Return of employees emoluments, etc. U.K.

(1) Every employer, when required to do so by notice from an inspector, shall, within the time limited by the notice, prepare and deliver to the inspector a return relating to persons who are or have been employed by him, 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 a year of assessment beginning more than six years before the year of assessment in which the notice is given.

(3) A notice under subsection (1)—

(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 in [F65 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) 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) may require the return to contain, in respect of an employee to whom it relates, particulars of the payments made to him in respect of his employment 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.

(6) 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 the inspector, he shall prepare and deliver to the inspector, 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.

(7) A notice under subsection (1) 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 [F66 sections 141, 142, 143, 145 or 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.

(8) Where such benefits are provided the notice may, without prejudice to subsection (7)(b), require the return to contain the following particulars—

(a) where the benefits are or have been provided by the employer, particulars of the cost of providing them; and

(b) where the benefits are or have been provided otherwise than by the employer himself, the name and business address of any person who has (either by arrangement with the employer, or to his knowledge) provided them.

(9) Where it appears to an inspector that a person has, in any year of assessment, been concerned in providing benefits to or in respect of employees of another, the inspector may at any time up to 6 years after the end of that year of assessment by notice require him to deliver to the inspector, within the time limited by the notice, such particulars of those benefits as may be specified in the notice (so far as known to him) and to include with those particulars the names and addresses (so far as known to him) of the employees concerned.

(10) 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.

Provided that, 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.

(11) In this section—

(a) “employee” means an office holder or employee whose emoluments fall to be assessed under Schedule E, and related expressions are to be construed accordingly; F67 ...

F67 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

Textual Amendments

F64 S. 15 substituted by Finance Act 1976 (c. 40), s. 72, Sch. 9 para. 1 (with effect for the year 1976—77 as if ss. 64, 68 of, Sch. 7 to the amending Act were in operation for that year)

F65 Finance Act 1989 s. 53(2)(g).Previously “director's or higher-paid employment”.

F66 Income and Corporation Taxes Act 1988 Sch. 29 para. 32.

F67 S. 15(11)(b) and preceding word repealed by Finance Act 1989 (c. 26), s. 187, Sch. 17 Pt. IV.

16 Fees, commissions, etc. U.K.

(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 [F68 public 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 [F68 public 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.

F69 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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.

F70 [(8) 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 .]

Textual Amendments

F68 Words substituted (on and after 1.8.1989) by Copyright, Designs and Patents Act 1988 (c. 48), Sch. 7 para. 13; S.I. 1989/816

F69 S. 16(6) repealed by Finance Act 1989 (c. 26), ss. 164(6), 187, Sch. 17 Pt. VIII (in relation to any failure to comply with a notice etc. on or after 27 July 1989)

F70 S. 16(8) added by Finance Act 1988 (c. 39), s. 124(1) with respect to payments made in the year 1988-89 or subsequent years.

[F71 16A Agency workers. U.K.

(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.]

Textual Amendments

F71 S. 16A inserted by Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 6.

17 Interest paid or credited by banks, etc. without deduction of income tax. U.K.

(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 [F72 or 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 [F73 of 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 [F72 actually 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—

F74 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the year specified in a notice under this subsection shall not be a year ending more than three years before the date of the service of the notice .

(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.

M2 (3) 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 .

(4) This section shall apply only to money received or retained in the United Kingdom, F75 ... .

[F76 (4A) 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.]

[F77 (5) 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.]

Textual Amendments

F72 Words in s. 17(1) inserted (with effect where interest is paid or credited in the year 1991-92 or in a subsequent year of assessment) by Finance Act 1990 (c. 29), s. 92(2)(a)(b)(7)

F73 Words inserted by Finance Act 1988 (c. 39) s. 123(2) with respect to notices given on or after 29 July 1988.

F74 Words in s. 17(1) omitted (with effect where interest is paid or credited in the year 1991-92 or in a subsequent year of assessment) by Finance Act 1990 (c. 29), s. 92(2)(c)(7)

F75 Words in s. 17(4) repealed (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), ss. 29(1)(2), 82, Sch. 18 Pt. VII(3)

F76 S. 17(4A)-(4C) inserted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 29(1)(2)

F77 S. 17(5)(6) inserted (with effect where interest is paid or credited in the year 1991-92 or in a subsequent year of assessment) by Finance Act 1990 (c. 29), s. 92(3)(7)

Modifications etc. (not altering text)

C16 See S.I. 1990 No. 2231 coming into force 30 November 1990 for 1991-91 and subsequent years.

C17 See—Taxes Management Act 1970 (c. 9) s.119, Sch.4 para.2—references in s.17(1) to interest paid or credited by the Director of Savings to include references to interest paid or credited before 1 October 1969 by the Postmaster General to depositors. National Savings Bank Act 1971 (c.29) s.12(3)—s.12(1)of that Act (secrecy) to have effect subject to Taxes Management Act 1970 (c. 9 ) s. 17(3).

C18 S.I. 1986 No. 482, reg. 10— s. 17 to apply to a building society as if references to interest include references to dividends within the meaning of S.I. 1986 No. 482 and with the insertion of the words 'or of a building society' after the words 'trade or business of banking' in subs. (1)

Marginal Citations

M2 [Post Office Act 1969 Sch. VI(III).]

18 Interest paid without deduction of income tax. U.K.

(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 [F78 or after deduction of income tax] F79 ... 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 [F80 actually 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 [F81 the 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 [F82 subsection (1) above ] applies include any officer in any public office or in any department of the Crown.

(3) [F82 Subsection (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.

[F83 (3A) 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.]

[F84 (3B) 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.]

[F85 (3D) 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.]

F86 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F78 Words in s. 18(1) inserted (with effect as regards a case where interest is paid in the year 1991-92 or a subsequent year of assessment) by Finance Act 1990 (c. 29), s. 92(5)(a) (8)

F79 Income and Corporation Taxes Act 1988 Sch. 29 para. 7.Repealed by Finance Act 1988 Sch. 14 Part IVfor 1988=89and subsequent years.

F80 Words in s. 18(1)(b) substituted (with effect as regards a case where interest is paid in the year 1991-92 or a subsequent year of assessment) by Finance Act 1990 (c. 29), s. 92(5)(b) (8)

F81 Words in s. 18(1) substituted (with effect as regards a case where interest is paid in the year 1991-92 or a subsequent year of assessment) by Finance Act 1990 (c. 29), s. 92(5)(c) (8)

F82 Income and Corporation Taxes Act 1988 Sch. 29 para. 7(2).

F83 Finance Act 1988 (c. 39 SIF 63:1,2) s. 123(3)with respect to notices given on or after 29July 1988.

F84 S. 18(3B)(3C) inserted (with effect as regards a case where interest is paid in the year 1991-92 or a subsequent year of assessment) by Finance Act 1990 (c. 29), s. 92(6) (8)

F85 S. 18(3D) inserted (25.7.1991) by Finance Act 1991 (c. 31), s. 52(1), Sch. 11 para. 5(1)(2)

F86 Income and Corporation Taxes Act 1988 (c. 1) Sch. 29 para. 7 Repealed by Finance Act 1988 (c. 39) Sch. 14 Part IVfor 1988-89and subsequent years.

[F87 18A Other payments and licences etc. U.K.

(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.]

Textual Amendments

F87 S. 18A inserted by Finance Act 1988 (c. 39) s. 125

19 Information for purposes of Schedule A. U.K.

(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 [F88 34 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.

[F89 (4) 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.]

Textual Amendments

F88 Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 32.

F89 S. 19(4) added (with effect with respect to notices given on or after 29 July 1988) by Finance Act 1988 (c. 39), s. 123(4)

Production of accounts, books and other information U.K.

[F90 19A Power to call for documents for purposes of certain enquiries. U.K.

(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.]

Textual Amendments

F90 S. 19A inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 187; S.I. 1998/3173, art. 2

[F91 20 Power to call for documents of taxpayer and others. U.K.

(1) Subject to this section, an inspector may by notice in writing require [F92 a 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 [F92 a 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 [F92 other 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[F93 ; and the persons who may be required to deliver or make available a document under this subsection include the Director of Savings.]

F94 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F94 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) The persons who may be treated as “the taxpayer” [F95 for the purposes of this section] include a company which has ceased to exist and an individual who has died; F94 ...

(7) Notices under [F96 subsection (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.

F97 [(7A) 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.]

[F98 (7AB) 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.]

F95 [(8) 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 .]

F99 [(8A) 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 .]

F100 [(8C) 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.]

[F101 (8E) 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.]

Textual Amendments

F91 Ss 20, 20A, 20B, 20C, 20D substituted for s. 20 by Finance Act 1976 (c. 40), s. 57, Sch. 6.

F92 Finance Act 1989 s. 142(2)(3)(4)(a) with respect to notices given on or after 27 July 1989

F93 Finance Act 1989 s. 142(4)(b) with respect to notices given on or after 27 July 1989.

F94 Repealed by Finance Act 1989 s. 142(5)(6)(b)(10), 187, Sch. 17 Part VIII with respect to notices given or warrants issued on or after 27 July 1989.

F95 Finance Act 1989 s. 142(6)(a), (7) with respect to notices given on or after 27July 1989.

F96 Finance Act 1988 s. 126(1)(2)(6) with respect to notices given on or after 29July 1988.

F97 Finance Act 1990 s. 93 with respect to notices given on or after 26 July 1990.

F98 S. 20(7AB)(7AC) inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 255(2)

F99 Finance Act 1988 (c. 39) s. 126(3)(6) with respect to notices given after 29 July 1988.

F100 Finance Act 1989 s. 142(8), (10) with respect to notices given on or after 27 July 1989.

F101 S. 20(8E)-(8H) inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 255(3)

Modifications etc. (not altering text)

C19 See Finance Act 1990 s. 125(1)(2)(6)—in respect of notices given on or after 26 July 1990, subss.(1) to (8) and (8C) to (9) to apply as if references to tax liability included reference to liability to a tax of a member state which is a tax on income or capital.

[F91 20A Power to call for papers of tax accountant. U.K.

(1) Where after the passing of the Finance Act 1976X1 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 [F102 a 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.

F103 [(1A) 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 [F104 penalty]; 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 [F104 imposition] 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) The power to give a notice under this section, by reference to a person’s conviction or the [F105 imposition on] him of a penalty, ceases at the expiration of the period of 12 months beginning with the date on which it was first exercisable in his case by virtue of that conviction or [F105 penalty].

(5) To the extent specified in section 20B below, the above provisions are subject to the restrictions of that section.]

Editorial Information

X1 The Finance Act 1976 received the Royal Assent on 29 July 1976.

Textual Amendments

F91 Ss 20, 20A, 20B, 20C, 20D substituted for s. 20 by Finance Act 1976 (c. 40), s. 57, Sch. 6.

F102 Finance Act 1989 s. 168(2)(a). Previously “awarded against him a penalty incurred by”.

F103 Finance Act 1989 s. 143 with respect to notices given on or after 27 July 1989. Previously “for this purpose section 20(8) above applies, substituting “the client” for “the taxpayer”.”

F104 Finance Act 1989 s. 168(2)(b). Previously “award”.

F105 Finance Act 1989 s. 168(2)(c). Previously “award against” and “award”.

[F91 20B Restrictions on powers under ss.20 and 20A. U.K.

(1) Before a notice is given to a person by an inspector under [F106 section 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[F107 , or to furnish the particulars in question]; and the inspector must not apply for consent under [F106 section 20(7) or (8A)] or, as the case may be, section 20A(3), until the person has been given that opportunity.

[F108 (1A) 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 [F108 or furnish particulars] relating to the conduct of any pending appeal by him; a notice under section 20(3) [F109 or (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.

(3) 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), [F109 or (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), [F110 does 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 F111 ... if more than 6 years have elapsed since the death.

(8) A notice under section 20(3) [F109 or (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.

[F112 (9) 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.]]

Textual Amendments

F91 Ss 20, 20A, 20B, 20C, 20D substituted for s. 20 by Finance Act 1976 (c. 40), s. 57, Sch. 6.

F106 Finance Act 1988 s. 126(4)(6) with respect to notices given on or after 29 July 1988.

F107 Finance Act 1989 s. 144(2)(8) with respect to notices given on or after 27 July 1989.

F108 Finance Act 1989 s. 144(3)(4)(8) with respect to notices given on or after 27 July 1989.

F109 Finance Act 1988 s. 126(4) with respect to notices given on or after 27 July 1988.

F110 Finance Act 1989 s. 144(5)(8) with respect to notices given on or after 27 July 1989.

F111 Words repealed by Finance Act 1989 ss. 144(6)(8), 187, Sch. 17 Part VIII with respect to notices given on or after 27 July 1989.

F112 Finance Act 1989 s. 144(7)(8) in respect of notices given on or after 27 July 1989

Modifications etc. (not altering text)

C20 S. 20B(3) amended (E.W.) (1.1.1992) by S.I. 1991/2684, arts. 2, 4, Sch.1

[F113 20BB Falsification etc. of documents. U.K.

(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.]

Textual Amendments

F113 S. 20BB inserted by Finance Act 1989 s. 145(1)(2) in relation to any falsification, concealment, destruction or disposal of a document occurring on or after 27 July 1989.

[F91 20C Entry with warrant to obtain documents. U.K.

(1) If the appropriate judicial authority is satisfied on information on oath given by an officer of the Board that—

(a) there is reasonable ground for suspecting that an offence involving [F114 serious fraud] in connection with, or in relation to, tax [F114 is being, has been or is about to be] committed and that evidence of it is to be found on premises specified in the information; and

(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.

[F115 (1A) 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.

[F116 (3) 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.]]

Textual Amendments

F91 Ss 20, 20A, 20B, 20C, 20D substituted for s. 20 by Finance Act 1976 (c. 40), s. 57, Sch. 6.

F114 Finance Act 1989 s. 146(2)(5) with respect to warrants issued on or after 27 July 1989.

F115 Finance Act 1989 s. 146(3)(5) with respect to warrants issued on or after 27 July 1989.

F116 Finance Act 1989 s. 146(4)(5) with respect to warrants issued on or after 27 July 1989.

[F117 20CC Procedure where documents etc. are removed. U.K.

(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.]

Textual Amendments

F117 S. 20CC inserted by Finance Act 1989 (c. 26), s. 147, with respect to warrants issued on or after 27 July 1989

[F91 20D Interpretation of ss.20 to 20C. U.K.

(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 [F118 or 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.

[F119 (3) 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.]]

Textual Amendments

F91 Ss 20, 20A, 20B, 20C, 20D substituted for s. 20 by Finance Act 1976 (c. 40), s. 57, Sch. 6.

F118 Finance Act 1989 (c. 26), s. 148(2).

F119 Finance Act 1989 (c. 26), s. 148(3)

21 Stock jobbers’ transactions. U.K.

(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 [F120 market maker] F121 ... 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 .

(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 [F120 market maker] F121 ... 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 [F122 market maker] F123 ... any payment made by the [F122 market maker] F123 ... in the course of a business within subsection (1) above, being a payment treated by the [F122 market maker] F123 ... 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 [F122 market maker] F123 ... any sum constituting a receipt by him in the course of a business within subsection (1) above, being a receipt treated by the [F122 market maker] F123 ... 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 [F122 market 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—

• [F122 “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;]

• F123 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• [F124 “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.

Textual Amendments

F120 Finance Act 1986 s. 63, Sch. 18 para. 7 in relation to transactions effected on or after 27 October 1986.

F121 Words omitted repealed by Finance Act 1973 ss. 54, 59(7), Sch. 21 para. 5, Sch. 22 Pt. IV from 25 March 1973 except in relation to things done before that day.

F122 Finance Act 1986 s. 63, Sch. 18 para. 7 in relation to transactions effected on or after 27 October 1986.

F123 Words omitted repealed by Finance Act 1973 ss. 54, 59(7), Sch. 21 para. 5, Sch. 22 Pt. IV from 25 March 1973 except in relation to things done before that day.

F124 Finance Act 1986, s. 63, Sch. 18 para. 7 in relation to transactions effected on or after 27 October 1986.

Modifications etc. (not altering text)

C21 S. 21 applied (with modifications) (22.3.1992) by S.I. 1992/569, regs. 18, 22

C22 S. 21 applied (with modifications) (24.9.1992) by S.I. 1992/2074, regs. 9, 12

C23 S. 21 applied (with modifications) (1.10.1993) by S.I. 1993/2004, reg. 16

C24 See Finance Act 1986 Sch. 18 para. 9(1)(b)—the Board may by regulations substitute s. 21(1) and amend other provisions of s. 21.

Surtax U.K.

22 Additional particulars for surtax. U.K.

The Board may F125 . . . , 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.

Textual Amendments

F125 Words omitted repealed for 1973—74 et seq. by Finance Act 1971 ss. 37, 38, Sch. 14 Part II.

23 Power to obtain copies of registers of securities. U.K.

(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 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.

Modifications etc. (not altering text)

C25 See the Decimal Currency Act 1969 (c.19), ss. 10, 16(1)—references to shillings and pence in enactments passed before 15 February 1971 to be read on and after that day as referring to equivalent amount in the new currency.

24 Power to obtain information as to income from securities. U.K.

(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 .

(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.

Modifications etc. (not altering text)

C26 See, however, Income and Corporation Taxes Act 1988 (c. 1), s. 816(3) where a person resides in territory to which arrangements under s. 788 of that Act (agreements with other countries for double taxation relief) apply.

Chargeable gains U.K.

25 Issuing houses, stockbrokers, auctioneers, etc. U.K.

(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 Kingdom, other than a [F126 market 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 Kingdom) 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 [F127 £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 [F128 sections 99 and 288(1) of the 1992 Act].

[F129 (10) 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.]

Textual Amendments

F126 Finance Act 1986 s. 63, Sch. 18 para. 8 in relation to transactions on or after 27 October 1986.

F127 Finance Act 1989 (c. 26), s. 123 in relation to disposals on or after 6 April 1989.Previously “£3,000” by Finance Act 1982 s. 81(1)(c) in relation to disposals on or after 6 April 1982.

F128 Words in s. 25(9) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by virtue of Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(4) (with ss. 60, 101(1), 171, 201(3))

F129 Finance Act 1986 s. 63, Sch. 18 para. 8 in relation to transactions on or after 27 October 1986.

Modifications etc. (not altering text)

C27 See Finance Act 1973 s. 54(1)—to be construed as reference to a member of The Stock Exchange on and after 25 March 1973 except in relation to things done before that day.

26 Nominee shareholders. U.K.

(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. U.K.

(1) The Board may by notice in writing require any person, being a party to a settlement, to furnish them within such time as they may direct (not being less than twenty-eight days) with such particulars as they think necessary for the purposes of [F130 the [F131 1992 Act]].

(2) In this section “settlement” has the meaning given by section [F132 681(4)] of the principal Act.

Textual Amendments

F130 Capital Gains Tax Act 1979 (c. 14), s. 157(2), Sch. 7 para. 8 for 1979-80 et seq.

F131 Words in s. 27(1) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(2) (with ss. 60, 101(1), 171, 201(3))

F132 Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para 32.

[F133 28 Non-resident companies and trusts. U.K.

(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.]

Textual Amendments

F133 S. 28 substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(5) (with ss. 60, 101(1), 171, 201(3))

PART IV U.K. ASSESSMENT AND CLAIMS

Modifications etc. (not altering text)

C28 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)

C29 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)

[F134 28A Amendment of self-assessment where enquiries made. U.K.

(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.]

Textual Amendments

F134 S. 28A inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 188; S.I. 1998/3173, art. 2

[F135 28B Amendment of partnership statement where enquiries made. U.K.

(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.]

Textual Amendments

F135 S. 28B inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 189; S.I. 1998/3173, art. 2

[F136 28C Determination of tax where no return delivered. U.K.

(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.]

Textual Amendments

F136 S. 28C inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 190; S.I. 1998/3173, art. 2

[F137 29 Assessment where loss of tax discovered. U.K.

(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.

(2) 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.

(3) 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.]

Textual Amendments

F137 S. 29 substituted (with effect in accordance with ss. 191(2), 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 191(1); S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C30 S. 29 excluded (16.7.1992) by Income and Corporation Taxes Act 1988 (c. 1), Sch. 3 para. 6E (which was inserted (16.7.1992 having effect in relation to transactions effectd on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras. 2(2), 6)

[F138 30 Recovery of overpayment of tax, etc. U.K.

(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 .

[F139 (1A) Subsection (1) above shall not apply where the amount of tax which has been repaid is assessable under section 29 of this Act.]

[F140 (1B) 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) a repayment of tax has been increased in accordance with section [F141 824 or 825 of the principal Act or section] [F142 283 of the 1992 Act] (supplements added to repayments of tax, etc.); 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) 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.

[F143 (2A) 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) a payment, other than a repayment of tax to which subsection (2) above applies, is increased in accordance with section [F141 824 or 825 of the principal Act or section] [F142 283 of the 1992 Act]; and

(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.

[F144 (3A) 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 [F145 and 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.]

[F146 (4A) 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.]

[F147 (5) 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 [F148 section 36] of this Act.

(7) In this section any reference to an amount repaid or paid includes a reference to an amount allowed by way of set-off.]

Textual Amendments

F138 S. 30 substituted (in relation to any amount repaid or paid on or after 6 April 1982) by Finance Act 1982 (c. 39), s. 149(1)(3)

F139 S. 30(1A) inserted (in relation to amounts of tax repaid on or after 26 July 1990) by Finance Act 1990 (c. 29), s. 105

F140 S. 30(1B) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 4(1); S.I. 1998/3173, art. 2

F141 Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para 32.

F142 Words in s. 30(2)(a)(3)(a) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para 2(6) (with ss. 60, 101(1), 171, 201(3))

F143 S. 30(2A) inserted (30.9.1993) by Finance (No. 2) Act 1987 (c. 51), s. 88(1) (as amended by Income and Corporation Taxes Act 1988 (c. 1), s. 844, Sch. 29 para. 10(3)); S.I. 1992/3066, art. 2(2)(a)

F144 S. 30(3A) inserted (30.9.1993) by Finance (No. 2) Act 1987 (c. 51), s. 88(2) (as amended by Income and Corporation Taxes Act 1988 (c. 1), s. 844, Sch. 29 para. 10(3)); S.I. 1992/3066, art. 2(2)(a)

F145 Words in s. 30(4) inserted (30.9.1993) by Finance (No. 2) Act 1987 (c. 51), s. 88(3); S.I. 1992/3066, art. 2(2)(a)

F146 S. 30(4A) inserted (30.9.1993) by Finance (No. 2) Act 1987 (c. 51), s. 88(4); S.I. 1992/3066, art. 2(2)(a)

F147 S. 30(5) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 4(2); S.I. 1998/3173, art. 2

F148 Words in s. 30(6) substituted by Finance Act 1989 (c. 26), s. 149(3)(a) (but not to affect the making of assessments before 1983-84 or for accounting periods before 1 April 1983)

Modifications etc. (not altering text)

C31 S. 30 extended by Finance Act 1991 (c. 31, SIF 63:1), s. 33(3)(b)

C32 S. 30 modified (6.4.1992) by S.I. 1992/734, reg. 6(1)

C33 See—Income and Corporation Taxes Act 1988 s. 812 to 813—application of s.30 to the recovery of tax credits incorrectly paid.S.I. 1987 No. 1749 reg. 11—s. 30to apply to payments by the Board of amounts paid under S.I. 1987 No. 1749to which scheme administrators were not entitled or recoverable from scheme administrators under S.I. 1987 No. 1749 regs. 7(5), 8(4) or (6) or 10 as if they were income tax repaid to scheme administrators to which they were not entitled.

C34 See—Income and Corporation Taxes Act 1988 (c. 1) Sch. 14 para 7(3)(b)—application of s. 30 to sums claimed under s. 266(5)(b) to which the claimant was not entitled.Finance Act 1989 s. 57(3)—application of s. 30 to medical insurance relief.Personal Pension Schemes (Relief at Source) Regns. 1988 (S.I. 1988 No. 1013)— s. 30to apply to payments under reg. 13.Personal Pension Schemes (Min. Contributions under the Social Security Act 1986) Regs. 1988 (S.I. 1988 No. 1012) (in Part III Vol. 5)—s. 30to apply to payments under regn. 6.Private Medical Insurance (Disentitlement to Tax Relief and Approved Benefits) Regns. 1989 (S.I. 1989 No. 2389) regn. 5—application of s. 30to recovery of tax from person who ceases to be entitled to relief.

[F149 30A Assessing procedure. U.K.

(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.]

Textual Amendments

F149 S. 30A inserted (with effect in accordance with s. 199(2)(3), Sch. 19 para. 5(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 5(1); S.I. 1998/3173, art. 2

[F150 30B Amendment of partnership statement where loss of tax discovered. U.K.

(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 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.

(3) 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.

(4) 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.]

Textual Amendments

F150 S. 30B inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 6; S.I. 1998/3173, art. 2

31 Right of appeal. U.K.

[F151 (1) 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 sections 660 to 685 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.]

F152 (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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.

F153 [(5A) 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.]

(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.

Textual Amendments

F151 S. 31(1)(1A)(2)(3) substituted for s. 31(1)-(3) (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 7; S.I. 1998/3173, art. 2

F152 A development land tax provision added by Development Land Tax Act 1976 (c. 24) Sch. 8 para. 3; Development Land Tax Act 1976 repealed by Finance Act 1985 s. 98(6), Sch. 27 Part X.

F153 Finance Act 1984 s. 127, Sch. 22 para. 3(1) on and after 1 January 1985; S.I. 1984 No. 1836 (C. 45).

Modifications etc. (not altering text)

C35 S. 31 modified (27.7.1993) by 1993 c. 34, s. 173, Sch. 19 Pt. I para. 7(2)(a)

C36 S. 31 applied (1.10.1993) by S.I. 1993/2004, reg.11(10)

C37 See—Finance Act 1988 (c. 39), Sch. 5 para. 5(2)—application of subsections (5) to (5E) to appeal by underwriter against inspector's determination; Finance Act 1988 (c. 39), s. 134—General Commissioners for Northern Ireland.

C38 See Finance Act 1988 (c. 39), Sch. 5 para. 8(2)—individual underwriters determinations.

Relief for excessive assessments U.K.

32 Double assessment. U.K.

(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 F154 ... , 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.

(2) 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.

Textual Amendments

F154 Words relating to development land tax added by Development Land Tax Act 1976 (c. 24) Sch.8 para.4; Development Land Tax Act 1976 repealed by Finance Act 1985 s.98(6), Sch.27 Part X.

Modifications etc. (not altering text)

C39 See Finance Act 1981, s. 134, Sch. 17 para.18 for the application of this provision to the special tax on banking deposits.

33 Error or mistake. U.K.

(1) If any person who has paid tax charged under an assessment [F155 (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

[F156 (a) 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 .

(2) On receiving the claim the Board shall inquire into the matter and shall, subject to the provisions of this section, give by way of repayment such relief F157 ... in respect of the error or mistake as is reasonable and just:

F158 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F159 (2A) 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.]

(3) 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 .

(4) 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 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 .

F160 (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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.

F160 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F155 Words in s. 33(1) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 8(1)(a); S.I. 1998/3173, art. 2

F156 Words in s. 33(1) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 8(1)(b); S.I. 1998/3173, art. 2

F157 Words omitted repealed for 1973—74 et seq. by Finance Act 1971 ss. 37, 38, Sch. 14 Part II.

F158 Proviso to s. 33(2) repealed (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 8(2), Sch. 26 Pt. 5(23); S.I. 1998/3173, art. 2

F159 S. 33(2A) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 8(2); S.I. 1998/3173, art. 2

F160 A development land tax provision added by Development Land Tax Act 1976 (c. 24) Sch. 8 para. 5; Development Land Tax Act 1976 repealed by Finance Act 1985 s. 98(6), Sch. 27 Pt. X.

Modifications etc. (not altering text)

C40 S. 33 restricted (3.5.1994) by Finance Act 1994 (c. 9), s. 118(7)

C41 S. 33(1) modified (19.4.1991) for the assessment year 1988-1989 by S.I. 1991/851, regs. 1, 9, Sch. 2

C42 S. 33(1) modified (28.3.1992) for the year of assessment 1989 - 90 by S.I. 1992/511, reg. 9, Sch.2

C43 S. 33(1) applied (with modifications) (23.3.1993 with effect for the year of assessment 1990-91 only) by S.I. 1993/415, regs. 1(1), 9, Sch. 2

C44 S. 33(1) modified (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. 9, Sch. 2

C45 See—Finance Act 1981 s. 134, Sch. 17 para. 18 for the application of this provision to the special tax on banking deposits. S.I. 1989 No. 421, Schedule for modification in relation to Lloyd's underwriters for 1986-87. S.I. 1990 no. 627, reg. 3(2), Schedule for modification in relation to Lloyd's underwriters for 1987-88.

C46 For modification in relation to petroleum revenue tax and supplementary petroleum duty see Oil Taxation Act 1975 s. 1, Sch. 2 para. 1(1).

C47 See Finance Act 1981 s. 134 and Sch. 17 para. 18 for the application of this provision to the special tax on banking deposits.

[F161 33A Error or mistake in partnership statement. U.K.

(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.]

Textual Amendments

F161 S. 33A inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 9; S.I. 1998/3173, art. 2

Time limits U.K.

34 Ordinary time limit of six years. U.K.

(1) 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

[F162 (a) 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.

Textual Amendments

F162 Words in s. 34(1) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 10; S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C48 S. 34 excluded (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 248(2), 289 (with ss. 60, 101(1), 171, 201(3))

C49 See—Income and Corporation Taxes Act 1970 (c. 10), ss. 278(6), 279(5)—adjustments when company ceases to be a member of a group. Income and Corporation Taxes Act 1970 (c. 10), s. 280(6)—adjustments consequential on depreciatory transaction within a group of companies. Finance (No. 2) Act 1987 (c. 51), s. 84(7)—nothing in ss. 34-40 applies to assessments made under Finance (No. 2) Act 1987 s. 84. Income and Corporation Taxes Act 1988 (c. 1), s. 12—assessments to corporation tax consequential on determination of accounting period. Income and Corporation Taxes Act 1988 (c. 1), s. 41(1)—rent etc., received after lost rent relief allowed. Income and Corporation Taxes Act 1988 (c. 1), s. 67(7) and (8)—adjustments in respect of sources of income chargeable to income tax under Sch. D Case III, IV or V, which are disposed of or cease to yield income. Income and Corporation Taxes Act 1988 (c. 1), s. 108—receipts accruing after discontinuance of trade, etc. Income and Corporation Taxes Act 1988 (c. 1), ss. 448, 806—adjustments in respect of double taxation relief. Income and Corporation Taxes Act 1988 (c. 1), s. 455(4)—assessments in respect of sums paid into special reserve funds by underwriters who have died. Income and Corporation Taxes Act 1988 (c. 1), s. 488—adjustments on revocation of direction under that section (co-operative housing associations). Income and Corporation Taxes Act 1988 (c. 1), s. 535—assessments consequential on claims under that section (copyright sold after ten years). Income and Corporation Taxes Act 1988 (c. 1), ss. 569, 572—repayment of amounts paid under schemes for rationalizing industry or statutory redundancy schemes. Income and Corporation Taxes Act 1988 (c. 1), s. 584(2)—adjustments in respect of overseas profits ceasing to be unremittable. Income and Corporation Taxes Act 1988 (c. 1), s. 585—adjustments in respect of delayed remittances of overseas income. Income and Corporation Taxes Act 1988 (c. 1), s. 700—adjustments on completion of administration of deceased person's estate. Income and Corporation Taxes Act 1988 (c. 1), s. 703—cancellation of tax advantages from certain transactions in securities. Income and Corporation Taxes Act 1988 (c. 1), s. 781—cancellation of certain reliefs for payments under leases of plant, etc. Capital Allowances Act 1990 (c. 1), s. 1(8) (9)—withdrawal of initial allowance where investment grant made. S.I. 1956/1230, regs. 18, 21—adjustments in respect of purchased life annuities. S.I. 1989/421, Sch—modifications for underwriters for 1986-87. S.I. 1990/627, reg. 3(2), Schedule—modification for underwriters for 1987-88. Transport Act 1962 (10 & 11 Eliz. 2 c. 46), s. 42(2)—adjustments of capital allowances in consequence of directions under s. 40(3) of that Act.

C50 S. 34(1) applied (with modification) (19.4.1991) for the assessment year 1988-1989 by S.I. 1991/851, regs. 1, 3(2), Sch. 1

S. 34(1) extended (with modifications) (28.3.1992) for the year of assessment 1989-90 by S.I. 1992/511, regs. 1,3, Sch. 1

C51 See S.I. 1974/896, reg. 4(2) for modification in relation to Lloyd's Underwriters.

C52 S. 34(1) 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(2), Sch.1

C53 For modification in relation to petroleum revenue tax and supplementary petroleum duty see Oil Taxation Act 1975 s.1, Sch.2 para.1(1)—Oil Taxation Acts.

C54 S. 34 modified (16.7.1992) by Income and Corporation Taxes Act 1988 (c. 1), Sch. 3 para. 6E (which was inserted (16.7.1992 having effect in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras. 2(2), 6)

C55 S. 34(1) applied (with modifications) (with effect 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(2), Sch.

35 Emoluments received after year for which they are assessable. U.K.

(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.

(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—

F163 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) any payment chargeable to tax by virtue of section [F164 148] 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.

Textual Amendments

F163 S. 35(2)(a) repealed by Finance Act 1976 Schs. 9 para. 10 and15 Part III in relation to income assessable for 1977—78 and subsequent years.

F164 Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 32.

Modifications etc. (not altering text)

C56 See Finance (No. 2) Act 1987 s. 84(7)—nothing in ss.34 to 40applies to assessments made under Finance (No. 2) Act 1987 s. 84.

[F165 36 Fraudulent or negligent conduct. U.K.

(1) 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

[F166 (a) 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.]

[F167 (2) 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.

[F168 (3A) 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).]

[F169 (4) 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.]]

Textual Amendments

F165 S. 36 substituted by Finance Act 1989 (c. 26), s. 149(1) but shall not affect making of assessments before 1983-84 or for accounting periods ending before 1 April 1983

F166 Words in s. 36(1) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 11(1); S.I. 1998/3173, art. 2

F167 S. 36(2) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 11(2); S.I. 1998/3173, art. 2

F168 S. 36(3A) inserted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 20, Sch. 5 paras. 9(2), 10

F169 S. 36(4) added by Finance Act 1990 s. 69, Sch. 11 para. 4(1) on and after 1July 1989.

Modifications etc. (not altering text)

C57 S. 36 modified (27.7.1993) by 1993 c. 34, s. 173, Sch. 19 Pt. I para.8

C58 S. 36 applied (1.10.1993) by S.I. 1993/2004, reg.11(7)

C59 S. 36(1) applied (with modifications) (19.4.1991) for the year of assessment 1988-1989 by S.I. 1991/851, regs. 1, 3(2), Sch. 1

S. 36(1) extended (with modifications) (28.3.1992) for the year of assessment 1989-90 by S.I. 1992/511, regs. 1,3, Sch. 1

C60 S. 36(1)(2) modified (16.7.1992) by Income and Corporation Taxes Act 1988 (c. 1), Sch. 3 para. 6E (which was inserted (16.7.1992 having effect in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras. 2(2), 6)

C61 S. 36(1) 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(2), Sch.1

C62 S. 36(1) applied (with modifications) (with effect 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(2), Sch. 1

C63 See—Income and Corporation Taxes Act 1988 (c. 1), Sch. 13—application of s. 36 to assessments to advance corporation tax. Income and Corporation Taxes Act 1988 (c. 1), Sch. 16—application of s. 36 to assessments to income tax on company payments which are not distributions. Finance Act 1988 (c. 39) Sch. 5 para. 9—underwriter's agent. S.I. 1987/530, reg. 11(2)—application of ss. 36, 37 to assessments in relation to non-resident entertainers and sportsmen.

F170 37 Neglect: income tax and capital gains tax. U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F170 Ss 37, 38, 39 repealed by Finance Act 1989 (c. 26), ss. 149(2), 187, Sch. 17 Pt. VIII (but not to affect the making of assessments before 1983-84 or for accounting periods ending before 1 April 1983)

[F171 37A Effect of assessment where allowances transferred. U.K.

Where an assessment is made on any person for the purpose of making good a loss of tax wholly or partly attributable to [F172 fraudulent or negligent conduct], the fact that the person’s [F173 liability 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 [F174 any income tax reduction or deduction from total income made in the case of that person’s spouse] by virtue of section [F175 257BB], 257D or 265 of the principal Act; [F176 and 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].]

Textual Amendments

F171 S. 37A inserted (for 1990-91 and subsequent years) by Finance Act 1988 (c. 39), s. 35, Sch. 3 para. 30

F172 Words in s. 37A substituted by Finance Act 1989 (c. 26), s. 149(4)(a)(i) (but not to affect the making of assessments before 1983-84 or for accounting periods ending before 1 April 1983)

F173 Words in s. 37A inserted (with effect in accordance with s. 77(7) of the amending Act) by Finance Act 1994 (c. 9), Sch. 8 para. 13(a)

F174 Words in s. 37A substituted (with effect in accordance with s. 77(7) of the amending Act) by Finance Act 1994 (c. 9), Sch. 8 para. 13(b)

F175 Words in s. 37A substituted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 20, Sch. 5 para. 9(3), 10

F176 Words in s. 37A substituted (with effect in accordance with s. 77(7) of the amending Act) by Finance Act 1994 (c. 9), Sch. 8 para. 13(c)

F177 38 Modification of s.37 in relation to partnerships. U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F177 Ss 37, 38, 39 repealed by Finance Act 1989 (c. 26), ss. 149(2), 187, Sch. 17 Pt. VIII (but not to affect the making of assessments before 1983-84 or for accounting periods ending before 1 April 1983)

F178 39 Neglect: corporation tax. U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F178 Ss 37, 38, 39 repealed by Finance Act 1989 (c. 26), ss. 149(2), 187, Sch. 17 Pt. VIII (but not to affect the making of assessments before 1983-84 or for accounting periods ending before 1 April 1983)

40 Assessment on personal representatives. U.K.

(1) 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 [F179 the period of three years beginning with the 31st January next following the year of assessment] in which the deceased died.

(2) F180 ... , For the purpose of making good to the Crown any loss of tax attributable to the [F181 fraudulent 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 [F179 the period of three years beginning with the 31st January next following the year of assessment] in which he died.

(3) In [F182 this section] “tax” means income tax or capital gains tax .

[F183 (4) 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.]

F184 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F184 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F179 Words in s. 40(1)(2) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 12; S.I. 1998/3173, art. 2

F180 Words repealed by Finance Act 1989 s. 187and Sch. 17 Part VIII.

F181 Finance Act 1989 s. 149 para. (4)(a)(ii) but not to affect making of assessments before 1983-84or for accounting periods ending before 1April 1983.Previously

“fraud, wilful default or neglect”.

F182 Words in s. 40(3) substituted by Finance Act 1985 (c. 54), s. 93(7), Sch. 25 para. 5

F183 S. 40(4) inserted (with effect on and after 1 July 1989) by Finance Act 1990 (c. 29), s. 69, Sch. 11 para. 4(2).

F184 S. 40(4)(5) added by Development Land Tax Act 1976 Sch. 8 para. 9; Development Land Tax Act 1976 repealed by Finance Act 1985 s. 98(6), Sch. 27 Part X.

Modifications etc. (not altering text)

C64 S. 40 modified (27.7.1993) by 1993 c. 34, s. 173, Sch. 19 Pt. I para. 8

C65 S. 40(1)(2) applied (with modifications) (19.4.1991 for the year of assessment 1988-89) by S. I. 1991/851, regs. 1, 3(2), Sch. 1

S. 40(1)(2) extended (with modifications) (28.3.1992 for the year of assessment 1989-90) by S.I. 1992/511, regs. 1,3, Sch. 1

C66 S. 40(1)(2) 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(2), Sch.1

C67 S. 40(1)(2) applied (with modifications) (with effect 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(2), Sch. 1

C68 See Finance (No. 2) Act 1987 s. 84(7)—nothing in ss. 34 to 40applies to assessments made under Finance (No. 2) Act 1987 s. 84.

C69 See Finance Act 1988 (c. 39) Sch. 5 para. 9—underwriter's agent.

F185 41 Leave of General or Special Commissioners required for certain assessments. U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F185 S. 41 repealed by Finance Act 1989 (c. 26), ss. 149(2), 187, Sch. 17 Pt. VIII (but not to affect the making of assessments before 1983-84 or for accounting periods ending before 1 April 1983)

[F186 Corporation tax determinations U.K.

Textual Amendments

F186 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)

41A Determination procedure U.K.

(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.

41B Reduction of determination U.K.

(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,”.

41C Time limits U.K.

(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 U.K.

[F187 42 Procedure for making claims etc. U.K.

(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.

(2) Subject to subsection (3) 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) Subsection (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.

(4) 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.

(5) The references in subsections (2) and (4) above 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) sections 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, 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 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, and

(b) does not fall to be taken into account in the making of deductions or repayments of tax under section 203 of the principal Act.

(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.]

Textual Amendments

F187 S. 42 substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 13; S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C70 S. 42 restricted (3.5.1994) by Finance Act 1994 (c. 9), s. 118(7)

C71 S. 42 excluded by Capital Allowances Act 1990 (c. 1), s. 140(3) (as substituted (with effect in accordance with ss. 211(2), 218 of the amending Act) by Finance Act 1994 (c. 9), s. 211(1) (with s. 214(7), Sch. 20))

43 Time limit for making claims. U.K.

(1) 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

[F188 (a) 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.

F189 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F188 Words in s. 43(1) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 14; S.I. 1998/3173, art. 2

F189 S. 43(3) added by Development Land Tax Act 1976 (c. 24) Sch. 8 para. 12. Development Land Tax Act 1976 repealed by Finance Act 1985 (c.54), s. 98(6), Sch. 27 Part X.

Modifications etc. (not altering text)

C72 S. 43 modified (27.7.1993) by 1993 c. 34, s. 194(4)

C73 S. 43(1) modified (19.4.1991) for the year of assessment 1988-1989 by S.I. 1991/851, regs. 1, 9, Sch. 2

S. 43(1) modified (28.3.1992) for the year of assessment 1989-90 by S.I. 1992/511, reg. 9, Sch.2

C74 S. 43(1) applied (with modifications) (23.3.1993 with effect for the year of assessment 1990-91 only) by S.I. 1993/415, regs. 1(1), 9, Sch.2

C75 S. 43(1) modified (with effect 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. 9, Sch. 2

C76 As to longer time limits, see—Income and Corporation Taxes Act 1970 (c. 10), s. 280(6)—adjustments consequential on depreciatory transaction within a group of companies. Income and Corporation Taxes Act 1988 (c. 1), s. 36—adjustment of charge on sale of land with right to reconveyance. Income and Corporation Taxes Act 1988 (c. 1), s. 62—commencing provisions for income tax under Sch. D Cases I and II. Income and Corporation Taxes Act 1988 (c. 1), s. 67—sources of income chargeable to income tax under Sch. D Case III, IV or V which are disposed of or cease to yield income. Income and Corporation Taxes Act 1988 (c. 1), s. 419(4)—adjustments of assessments on close companies to tax on loans to participators and to shortfall tax. Income and Corporation Taxes Act 1988 (c. 1), ss. 448, 806—double taxation relief. Income and Corporation Taxes Act 1988 (c. 1), s. 534—relief for copyright royalties, etc. Income and Corporation Taxes Act 1988 (c. 1), s. 585—relief on delayed remittances of overseas income. Income and Corporation Taxes Act 1988 (c. 1), s. 619—consequential adjustments of relief for retirement annuity premiums. Income and Corporation Taxes Act 1988 (c. 1), s. 700—adjustments on completion of administration of deceased person's estate. Income and Corporation Taxes Act 1988 (c. 1), s. 781(7)—adjustments on cancellation of certain reliefs for payments under leases of plant etc. S.I. 1956/1230, reg. 21—adjustments in respect of certain purchased life annuities.

C77 See—S.I. 1974/896, reg. 4(2); S.I. 1989/421, Schedule—modification in relation to Lloyd's Underwriters; S.I. 1990/627, reg. 3(2), Schedule—modification for underwriters for 1987-88.

C78 See—Finance Act 1981 (c. 35), s. 134, Sch. 17 para. 18—application of s. 43(1) to the special tax on banking deposits; Income and Corporation Taxes Act 1988 (c. 1), Sch. 26—application of s.43to a claim for relief under Sch. 26 where the chargeable profits of a controlled foreign company are apportioned to a company resident in the UK.

[F190 43A Further assessments: claims etc. U.K.

(1) This section applies where—

(a) by virtue of [F191 section 29 of this Act] [F192 or section 412(3) of the principal Act] an assessment is made on any person for a chargeable period, and

(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.

[F193 (2A) 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.]

Textual Amendments

F190 Ss. 43A, 43B inserted (with effect in relation to any assessment notice which is issued on or after 27 July 1989) by Finance Act 1989 (c. 26), s. 150

F191 Words in s. 43A(1) substituted (with effect in accordance with s. 199(2)(3), Sch. 19 para. 15(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 15(1); S.I. 1998/3173, art. 2

F192 Words in s. 43A(1)(a) inserted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para.2

F193 S. 43A(2A) inserted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 20, Sch. 5 paras. 9(4), 10

[F194 43B Limits on application of section 43A. U.K.

(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.]

Textual Amendments

F194 Ss. 43A, 43B inserted (with effect in relation to any assessment notice which is issued on or after 27 July 1989) by Finance Act 1989 (c. 26), s. 150

PART V U.K. APPEALS AND OTHER PROCEEDINGS

Modifications etc. (not altering text)

C79 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)

C80 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))

C81 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)

C82 Pt. 5 applied (1.10.1993) by The Income Tax (Manufactured Overseas Dividends) Regulations 1993 (S.I. 1993/2004), reg. 11(10)

C83 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 U.K.

44 General Commissioners. U.K.

(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.

[F195 (1A) 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.]

[F196 (2) 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.

[F197 (3A) 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.

(5) Anything to be done by the General Commissioners may, save as otherwise expressly provided by the Taxes Acts, be done by any two or more General Commissioners .

Textual Amendments

F195 Finance Act 1988 (c. 39), s. 133(1) (3) in relation to proceedings instituted on or after 1 January 1989.

F196 Finance Act 1988 (c. 39), s. 133(2) (3) in relation to proceedings instituted on or after 29th July 1988

F197 Finance Act 1984 (c. 43), s. 127, Sch. 22 para.5 on and after 1 January 1985; S.I. 1984/1836 (C. 45)

Modifications etc. (not altering text)

C84 S. 44(2) applied (6.4.1993) by S.I. 1993/744, reg. 11(4)

C85 See—Finance Act 1988 (c. 39), s. 134(7)—General Commissioners for Northern Ireland.Income Tax (Employment) Regns. 1973 (S.I. 1973/334), reg. 48(3)—appeal against assessment under Sch.E.

45 Quorum of Special Commissioners. U.K.

(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 [F198 shall, except in any case where the Presiding Special Commissioner directs otherwise] be done by, to or before a single Special Commissioner, F199 ... ; and 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.

F200 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Proceedings brought [F201 , 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.

F200 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F200 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F200 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F198 Finance Act 1984 (c. 43), s. 127, Sch. 22 para. 2(2) on and after 1 January 1985; S.I. 1984/1836 (C.45).

F199 Repealed by Finance Act 1984 (c. 43), ss. 127, 128(6), Sch. 22 para. 2(2), Sch. 23 Part XIII on and after 1 January 1985; S.I. 1984/1836 (C.45).

F200 Repealed by Finance Act 1984 (c. 43), ss. 127, 128(6), Sch. 22 para. 2(4), Sch. 23 Part XIII on and after 1 January 1985; S.I. 1984/1836 (C.45).

F201 Finance Act 1984 (c. 43), s. 127, Sch. 22 para. 2(3) on and after 1 January 1985; S.I. 1984/1836 (C.45).

46 General and Special Commissioners. U.K.

(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.

(2) Save as otherwise provided in the Taxes Acts [F202 and 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.

Textual Amendments

F202 Words in s. 46(2) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 16; S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C86 See Finance Act 1988 (c. 39) Sch. 5 para. 5(2)—appeal by underwriter's agent against inspector's determination.

[F203 46A Regulations about jurisdiction. U.K.

(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.]

Textual Amendments

F203 S. 46A inserted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para.3

Modifications etc. (not altering text)

C87 S. 46A applied (with modifications) (16.7.1992) by Inheritance Act 1984 (c. 51), s. 225A(1) (which was inserted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para.8)

47 Special jurisdiction relating to tax on chargeable gains. U.K.

(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 [F204 the [F205 1992 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:

F206 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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 [F207 by the Special Commissioners], and those Commissioners shall hear and determine the question in the same way as an appeal.

F208 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F204 Capital Gains Tax Act 1979 s. 157(2), Sch. 7 para. 8for 1979-80et seq.

F205 Words in s. 47(1) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation and Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(2) (with ss. 60, 101(1), 171, 201(3))

F206 Proviso repealed (as spent) by Finance Act 1974 s. 57(6), Sch.14 Part VII. SeeS.I. 1971 No.215—Lands Tribunal Act 1949 ss. 1-4brought into force in Scotland on 1 March 1971.

F207 Finance Act 1975 s.54(1).See1975 s.54(2)as to transfer of proceedings pending at the passing of that Act (13 March 1975).

F208 Repealed by Capital Gains Tax Act 1979 s.158, Sch.8 for 1979—80 et seq.

F209 47A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F209 S. 47A added by Development Land Tax Act 1976 (c. 24), Sch. 8 para. 13. Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54), s. 98(6), Sch.27 Part X.

[F210 47B Special jurisdiction relating to Business Expansion Scheme. U.K.

If and so far as the question in dispute on any appeal against the refusal of relief under [F211 Chapter 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 [F211 Section 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.]

Textual Amendments

F210 S. 47B inserted by Finance Act 1986 (c. 41), s. 40(3), Sch. 9 para. 22 in relation to shares issued at any time after 18 March 1986.

F211 Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 32.

Proceedings before Commissioners U.K.

48 Application to appeals and other proceedings. U.K.

(1) 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 are to be heard and determined in the same way as an appeal,

subject [F212 to any necessary modifications, including (except in the case of applications under section 55 below) the omission of section 56(9) below].

Textual Amendments

F212 Finance (No.2) Act 1975 (c. 45), s. 45(4) in relation to notices issued after 31 July 1975.

Modifications etc. (not altering text)

C88 S. 48 applied by Finance Act 1981 (c. 35), s.134, Sch.17 para.18 (special tax on banking deposits).

C89 See Oil Taxation Act 1975 (c. 22), s.1, Sch.2 para.1(1), the Oil Taxation Acts, for modification regarding petroleum revenue tax and supplementary petroleum duty.

49 Proceedings brought out of time. U.K.

(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 .

(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.

Modifications etc. (not altering text)

C90 S. 49(1) applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

S. 49(1) applied by Finance Act 1981 (c. 35), s. 134, Sch. 17 para. 18 (special tax on banking deposits).

50 Procedure. U.K.

(1) The Commissioners shall cause notice of the day for hearing appeals to be given to every appellant, and shall meet together for the hearing of appeals from time to time, with or without adjournment until all appeals have been determined.

(2) Notice of appeal meetings to be held by the Commissioners shall also be given to the inspector by the clerk to the Commissioners, except that in proceedings to which the Board, or an officer of the Board other than an inspector, are parties, the notice shall be given to the Board or to that officer.

(3) Any officer of the Board may attend every appeal, and shall be entitled—

(a) to be present during all the time of the hearing and at the determination of the appeal, and

(b) to give reasons in support of the assessment or other decision against which the appeal is made.

(4) If it is shown to the satisfaction of the Commissioners that owing to absence, sickness or other reasonable cause any person has been prevented from attending at the hearing of an appeal on the day fixed for that purpose, they may postpone the hearing of his appeal for such reasonable time as they think necessary, or may admit the appeal to be made by any agent, clerk or servant on his behalf.

(5) Upon any appeal the Commissioners shall permit any barrister or solicitor to plead before them on behalf of any party to the appeal, either orally or in writing, and shall hear any accountant, that is to say, any person who has been admitted a member of an incorporated society of accountants:

F213 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F214 (6) 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 lawful 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.]

[F215 (8) Where, on an appeal against an assessment [F216 (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.]

[F217 (9) 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.]

Textual Amendments

F213 Repealed by Finance Act 1988 (c. 39), s. 148, Sch. 14 Part V, with effect from 6 April 1988

F214 S. 50(6)(7) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 17(1); S.I. 1998/3173, art. 2

F215 Finance (No. 2) Act 1975 (c. 45), s.67(2), in relation to all years except that judgments in any court given in proceedings commenced before 29 April 1975 are not to be affected.

F216 Words in s. 50(8) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 17(2); S.I. 1998/3173, art. 2

F217 S. 50(9) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 17(3); S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C91 See—Finance (No. 2) Act 1987 (c. 51), s. 84(6)—s. 50(6)-(8) not apply to assessments under Finance (No. 2) Act 1987 s. 84 in relation to penalties incurred under Taxes Management Act 1970 (c. 9) s. 94 after a day to be appointed.

C92 S. 50 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

C93 S. 50 applied (with modifications) by Finance Act 1981 (c. 35), s.134, Sch.17 para.18 (special tax on banking deposits).

C94 S. 50(5) amended (E.W.) (1.1.1992) by S.I. 1991/2684, arts. 2, 4, Sch.1

51 Power of Commissioners to obtain information from appellant. U.K.

(1) The Commissioners may at any time before the determination of an appeal give notice to the appellant or other party to the proceedings (not being an inspector or the Board) requiring him within the time specified in the notice—

(a) to deliver to them such particulars as they may require for the purpose of determining the appeal, and

(b) to make available for inspection by them, or by any 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 Commissioners issuing the notice, contain or may contain information relating to the subject matter of the proceedings.

(2) Any officer of the Board may, at all reasonable times, inspect and take copies of, or extracts from, any particulars delivered under subsection (1)(a) above; and the Commissioners or any officer of the Board may take copies of, or extracts from, any books, accounts, or other documents made available for their or his inspection under subsection (1)(b) above.

Modifications etc. (not altering text)

C95 See Finance Act 1981 s. 134and Sch. 17 para. 18—application of this section to the special tax on banking deposits.

52 Evidence. U.K.

(1) Any party to an appeal shall be entitled to adduce any lawful evidence.

(2) The Commissioners may summon any person (other than the appellant) to appear before them and give evidence, and a witness before the Commissioners may be examined on oath:

Provided that any agent or servant of the appellant, and any other person confidentially employed in the affairs of the appellant, may refuse to be sworn or to answer any question to which he objects.

(3) A person who after being duly summoned—

(a) neglects or refuses to appear before the Commissioners at the time and place appointed for that purpose, or

(b) appears, but refuses to be sworn, or

(c) refuses to answer any lawful question concerning the matters under consideration,

shall incur a penalty not exceeding £50:

Provided that the penalty imposed in respect of any offence under paragraph (b) or paragraph (c) of this subsection shall not apply to any such person as is within the proviso to subsection (2) above .

Modifications etc. (not altering text)

C96 See Finance Act 1981 s. 134and Sch. 17 para. 18—application of this section to the special tax on banking deposits.

53 Summary award of penalties. U.K.

(1) Any penalty incurred by any person for a failure to comply with a notice under section 51 above, or incurred by any person under section 52 above, may be [F218 determined] summarily by the Commissioners notwithstanding that no proceedings [F218 under section 100C of this Act] have been commenced, and accordingly [F219 section 98 of this Act shall have effect, in relation to a penalty so awarded, as if subsection (3) were omitted F220 ... ].

(2) An appeal shall lie to the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland, from the [F221 determination] of any penalty under this section, and on any such appeal the court may either confirm or reverse the [F221 determination] of the Commissioners or reduce or increase the sum [F221 determined].

(3) Any penalty [F222 determined] by virtue of this section shall for all purposes be treated as if it were tax charged in an assessment and due and payable .

Textual Amendments

F218 Finance Act 1989 (c. 26), s. 168(3)(a)

F219 Finance Act 1972 (c. 41), s.129 except in relation to penalties awarded before commencement of that Act (27 July 1972).

F220 Words repealed by Finance Act 1989 (c. 26), s. 187, Sch. 17 Part VIII in relation to failure to comply with a notice etc. on or after 27 July 1989

F221 Finance Act 1989 (c. 26), s. 168(3)(b)

F222 Finance Act 1989 (c. 26), s. 168(3)(c)

Modifications etc. (not altering text)

C97 See R.S.C. Ord. 91, (S.I. 1965/1776) under “appeal tribunals: Supreme Court, Rules of” r. 5as to procedure in the High Court in England and Wales.

C98 See Finance Act 1981 (c. 35), s. 134, Sch. 17 para. 18—application of this section to the special tax on banking deposits.

54 Settling of appeals by agreement. U.K.

(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 .

Modifications etc. (not altering text)

C99 See—Finance Act 1981 (c. 35), s.134, Sch.17 para.18—application of this section to the special tax on banking deposits. Finance Act 1982(c. 39), s.156, Sch.21 para.4(1)—application of s.54 to the tribunal under Finance Act 1970 s.463 in relation to functions transferred by s.156. Finance (No. 2) Act 1987 (c. 51), s. 84(7)—nothing in s. 55 applies to appeals against assessments under Finance (No. 2) Act 1987 s. 84. Income and Corporation Taxes Act 1988 (c. 1), s. 705(7)—agreement as to operation of s. 703 advance corporation tax taken into account in tax avoidance counteraction notice) requires agreement of all companies concerned.

[F223 55 Recovery of tax not postponed. U.K.

[F224 (1) 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) [F225 Except as otherwise provided by the following provisions of this section], the tax charged by the [F226 amendment or assessment] shall be due and payable as if [F227 there had been no appeal.]

(3) If the appellant has grounds for believing that he is overcharged to tax by the [F226 amendment 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 [F226 amendment 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.

[F228 (3A) An application under subsection (3) above may be made more than thirty days after the date of the issue of the notice of [F226 amendment 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 [F226 amendment or assessment].]

(4) 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 lawful evidence adduced, that there are reasonable grounds for believing that the appellant is overcharged to tax; and—

[F229 (a) 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 [F226 amendment 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 [F226 amendment 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.]

[F230 (6A) Where an appeal is brought against an [F226 amendment 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 [F231 an 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.

[F232 (9) 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 [F226 amendment or assessment] if there had been no appeal, be determined as if the tax were charged by an [F226 amendment 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 [F233 subsection (3) above] “inspector” means the inspector or other officer of the Board by whom the notice of [F226 amendment 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) F234 ... the transfer of proceedings under this Act from one body of Commissioners to another body of Commissioners shall not affect the validity of a determination under subsection (6) above.]

Textual Amendments

F223 S. 55 substituted by Finance (No.2) Act 1975 (c. 45), s. 45(1) in relation to appeals against assessments notices of which were issued after31July1975.

F224 S. 55(1) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 18(1); S.I. 1998/3173, art. 2

F225 Finance Act 1982 (c. 39), s.68(1) in relation to notices of assessment issued after 30 July 1982

F226 Words in s. 55 substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 18(2); S.I. 1998/3173, art. 2

F227 Finance Act 1989 (c. 26), s. 156(2)(a) for tax charged by any assessment notice of which is issued after 30 July 1982

F228 Finance Act 1982 (c. 39), s.68(2)(3) in relation to notices of assessment issued after 30 July 1982

F229 Finance Act 1989 (c. 26), s. 156(2) in relation to tax charged by any assessment notice of which is issued after 30 July 1982

F230 Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 8(2).

F231 Finance Act 1990 (c. 29), s. 104(2)(a), (4) where notice of appeal given on or after 26 July 1990

F232 Finance Act 1989 (c. 26), s. 156(2)(c) in relation to tax charged by any assessment notice of which is issued after 30 July 1982

F233 Finance Act 1990 (c. 29), s. 104(2)(b) (4) where notice of appeal given on or after 26 July 1990

F234 Repealed by Finance Act 1984 (c. 43), s.128(6), Sch.23 Part XIII on and after 1 January 1985; S.I. 1984/1836 (C. 45).

Modifications etc. (not altering text)

C100 S. 55 modified (27.7.1993) by 1993 c. 34, s. 173, Sch. 19 Pt. I para. 7(2)(a)

C101 See Finance Act 1988 (c. 39), Sch. 5 para. 6 for modification to s. 55 in connection with underwriters; and para. 8(2) (effects of determinations).

C102 S. 55(3)(4) modified by Income and Corporation Taxes Act 1988 (c. 1), s. 10(5)

S. 55(3)(4) restricted by Income and Corporation Taxes Act 1988 (c. 1), s. 306(8)

C103 S. 55 modified by Income and Corporation Taxes Act 1988 (c. 1), Sch. 27 para. 19(3)

56 Statement of case for opinion of the High Court. U.K.

(1) Immediately after the determination of an appeal by the Commissioners, the appellant or the inspector or other officer of the Board, if dissatisfied with the determination as being erroneous in point of law, may declare his dissatisfaction to the Commissioners who heard the appeal.

(2) The appellant or the inspector or other officer of the Board, as the case may be, having declared his dissatisfaction, may, within thirty days after the determination, by notice in writing addressed to the clerk to the Commissioners, require the Commissioners to state and sign a case for the opinion of the High Court thereon.

(3) The party requiring the case shall pay to the clerk to the Commissioners a fee of [F235 £25] for and in respect of the same, before he is entitled to have the case stated.

(4) The case shall set forth the facts and the determination of the Commissioners, and the party requiring it shall transmit the case, when stated and signed, to the High Court, within thirty days after receiving the same.

(5) At or before the time when he transmits the case to the High Court, the party requiring it shall send notice in writing of the fact that the case has been stated on his application, together with a copy of the case, to the other party.

(6) The High Court shall hear and determine any question or questions of law arising on the case, 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

(b) this subsection has effect subject to Part II of the Administration of Justice Act 1969 (appeal from High Court to House of Lords).

(9) Where the appeal is against an assessment, then notwithstanding that a 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 [F236 amount charged by] the assessment is altered by the order or judgment of the High Court, then—

(a) 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

F237 [(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 F238 ... 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.

(11) This section has effect in Northern Ireland subject to section 58 below .

Textual Amendments

F235 Finance Act 1984 s.127andSch.22 para.6on and after1January1985by virtue ofS.I. 1984 No. 1836 (C.45).Previously

“£1”.

F236 Finance Act 1989 s. 156(3)in relation to tax charged by any assessment notice of which is issued after 30 July 1982. Previously “amount of”.

F237 Finance (No.2) Act 1975 s.45(3)in relation to appeals against assessments of which notices were issued after31July1975.

F238 Words relating to development land tax added by Development Land Tax Act 1976 Sch.8 para.15. Development Land Tax Act 1976repealed byFinance Act 1985 s.98(6)andSch.27 Part X.

Modifications etc. (not altering text)

C104 S. 56 applied (6.4.1990) by The Lloyd’s Underwriters (Tax) (1987—88) Regulations 1990 (S.I. 1990/627), regs. 1, 9

S. 56 applied (19.4.1991) by The Lloyd’s Underwriters (Tax) (1988–89) Regulations 1991 (S.I. 1991/851), regs. 1, 7(4)

C105 S. 56 applied (28.3.1992) by The Lloyd’s Underwriters (Tax) (1989—90) Regulations 1992 (S.I. 1992/511), reg. 7(4)

C106 S. 56 applied (6.4.1993) by The Income Tax (Employments) Regulations 1993 (S.I. 1993/744), reg. 11(6) (revoked (6.4.2004) by S.I. 2003/2682, Sch. 2)

C107 See S.I. 1987 No. 1422 for modification in the case of referral direct to Court of Appeal.

C108 See S.I. 1987 No. 1422 for modification in the case of referral direct to Court of Appeal.

C109 SeeFinance (No.2) Act 1975 s.47(8)ands.48(7)repayment supplement not payable where Court may allow interest.

C110 S. 56 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

S. 56 applied by Finance Act 1981 (c. 35), s. 134, Sch. 17 para. 18 (special tax on banking deposits).

[F239 56A Statement of case: Special Commissioners to Court of Appeal. U.K.

(1) The Lord Chancellor may by order provide that—

(a) in such classes of appeal in England and Wales as may be prescribed by the order; and

(b) subject to the consent of the parties and to such other conditions as may be so prescribed;

a case stated by the Special Commissioners under section 56 above, for the opinion of the High Court, shall be referred to the Court of Appeal.

(2) An order under this section—

(a) may provide that section 56 above shall have effect, in relation to any appeal to which the order applies, with such modifications as may be specified in the order; and

(b) shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.]

Textual Amendments

F239 S. 56A inserted by Finance Act 1984 (c. 43), s.127, Sch.22 para.7 on and after1January1985; S.I. 1984/1836 (C.45)

[F240 56B Regulations about practice and procedure. U.K.

(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 [F241 specified 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.

[F242 (2A) 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.]

Textual Amendments

F240 Ss. 56B-56D inserted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para.4

F241 Words in s. 56B(2)(b) substituted (3.5.1994) by Finance Act 1994 (c. 9), s. 254(2)

F242 S. 56B(2A) inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 254(3)

Modifications etc. (not altering text)

C111 Ss. 56B-56D applied (16.7.1992) by Inheritance Tax Act 1984 (c. 51), s. 225A(2) (which was inserted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para.8)

[F240 56C Power of Special Commissioners to order costs. U.K.

(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.]

Textual Amendments

F240 Ss. 56B-56D inserted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para.4

Modifications etc. (not altering text)

C112 Ss. 56B-56D applied (16.7.1992) by Inheritance Tax Act 1984 (c. 51), s. 225A(2) (which was inserted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para. 8).

[F240 56D Power of Special Commissioners to publish reports of decisions. U.K.

(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.]

Textual Amendments

F240 Ss. 56B-56D inserted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para.4

Modifications etc. (not altering text)

C113 Ss. 56B-56D applied (16.7.1992) by Inheritance Tax Act 1984 (c. 51), s. 225A(2) (which was inserted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para. 8).

Chargeable gains U.K.

57 Regulations about appeals. U.K.

(1) The Board may make regulations—

(a) as respects the conduct of appeals against assessments and decisions on claims under the [F243 1992 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,

(d) 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.

F244 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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 [F245 section 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, F246 . . . 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.

Textual Amendments

F243 Words in s. 57(1)(a) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(2) (with ss. 60, 101(1), 171, 201(3)).

F244 Repealed, as regards disposals after22July1970,byFinance Act 1971 ss.55and 69(7) andSch.14, Part III,subject toFinance Act 1971, s.55andSch.9.

F245 Capital Allowances Act 1990 (c. 1) s. 164and Sch. 1 para. 1(1).Previously

“section 81 of the Capital Allowances Act 1968”.

F246 Words omitted repealed (for 1979-80 et seq.) by Capital Gains Tax Act 1979 (c. 14), s. 158, Sch. 8

Modifications etc. (not altering text)

C114 S. 57(1)(d) modified by Finance Act 1974 (c. 30), s. 47, Sch.10 para. 5(5)

F247 57A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F247 S. 57A added by Development Land Tax Act 1976 (c. 24), Sch. 8 para. 16. Development Land Tax Act 1976 repealed by Finance Act 1985 s.98(6), Sch. 27 Pt. X.

F248 57B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F248 S. 57B repealed and superseded (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), ss. 76, 82, Sch. 16 paras. 4, 5, Sch. 18 Pt.IX

Northern Ireland U.K.

58 Proceedings in tax cases in Northern Ireland. U.K.

F249 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) A case concerning tax which is stated by the F249 ... Commissioners under section 56 of this Act 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 that section 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 subsections (4), (5) and (8) of that section,

and the procedure relating to the transmission of the case to, and 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 exercise of its general jurisdiction, and an appeal shall lie from the Court of Appeal to the House of Lords in accordance with [F250 section 42 of the Judicature (Northern Ireland) Act 1978].

F251 [(2A) Where in proceedings in Northern Ireland an application is made for a case to be stated by the Commissioners under section 56 of this Act the case must be settled and sent to the applicant as soon after the application as is reasonably practicable.]

[F252 (3) 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 [F253 section 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.]

F254 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F249 Repealed by Finance Act 1988 (c. 39), ss. 134(2), 148, Sch. 14 Part IX from 3 April 1989; S.I. 1989/473.

F250 Judicature (Northern Ireland) Act 1978 (c.23), s.122, Sch.5 with effect on and after 18 April 1979; S.I. 1979/422.

F251 Finance Act 1988 (c. 39), s. 135 from 3 April 1989; S.I. 1989/473 (and see Finance Act 1988 (c. 39), s. 134).

F252 Finance Act 1988 (c. 39), s. 135 from 3 April 1989; S.I. 1989/473 (and see Finance Act 1988 (c. 39), s. 134).

F253 Capital Allowances Act 1990 (c. 1) s. 164, Sch. 1 para. 1(1).

F254 S. 85(4) repealed by Finance Act 1988 (c. 39), s. 148, Sch. 14 Part IX from 3 April 1989; S.I. 1989/473

Modifications etc. (not altering text)

C115 SeeOil Taxation Act 1975 s.1andSch.2 para.1(1)—theOil Taxation Acts—for modification regarding petroleum revenue tax and supplementary petroleum duty.

C116 SeeIncome Tax (Employments) Regns. 1973 (S.I. 1973 No.334) reg. 10(3)(4)—appeal against coding andreg. 48(3)—appeal against assessment underSch.E.

F255 59 Election for county court in Northern Ireland. U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F255 S. 59 repealed by Finance Act 1988 (c. 39), ss. 134(2), 148, Sch. 14 Part IX from 3 April 1989; S.I. 1989/473

[F256 PART VA U.K. Payment of Tax

Textual Amendments

F256 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

59A Payments on account of income tax. U.K.

(1) This section applies to any person (the taxpayer) as regards a year of assessment if as regards the immediately preceding year—

(a) he has been 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 subsection (4) 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.

(5) Where the taxpayer makes a claim under subsection (3) or (4) above, 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 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.

(8) In this section any reference to income tax deducted at source is a reference to—

(a) income tax deducted or treated as deducted from any income or treated as paid on any income, or

(b) any amount which, in respect of the year of assessment, is to be deducted at source under section 203 of the principal Act in a subsequent year, or is a tax credit to which section 231 of that Act applies.]

[F257 59B Payment of income tax and capital gains tax. U.K.

(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 under section 29 of this Act shall 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.]

Textual Amendments

F257 S. 59B inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 193 (with s. 198(3)); S.I. 1998/3173, art. 2

[F258 59C Surcharges on unpaid income tax and capital gains tax. U.K.

(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) or 95 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.]

Textual Amendments

F258 S. 59C inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 194; S.I. 1998/3173, art. 2

[F259 59D Payment of corporation tax. U.K.

(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).]

Textual Amendments

F259 S. 59D inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 195; S.I. 1998/3173, art. 2

Valid from 11/07/2019

[F260 59FB CT payment plans for tax on certain transactions with EEA residents U.K.

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.]

Textual Amendments

F260 S. 59FB 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. 1

PART VI U.K. COLLECTION AND RECOVERY

Modifications etc. (not altering text)

C117 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)

C118 Pt. 6 applied by The Income Tax (Entertainers and Sportsmen) Regulations 1987 (S.I. 1987/530), reg. 11(3)

60 Issue of demand notes and receipts. U.K.

(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.

Modifications etc. (not altering text)

C119 S. 60 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

C120 S. 60 applied (with modifications) by Finance Act 1981 (c. 35), s. 134, Sch. 17 para. 18 (special tax on banking deposits).

Distraint and poinding U.K.

61 Distraint by collectors. U.K.

(1) If a person neglects or refuses to pay the sum charged, upon demand made by the collector, [F261 the 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, [F262 a 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 [F263 in default].

(5) If the person [F264 in default] does not pay the sum due, together with the costs and charges F265 . . . , the distress shall be appraised by [F266 one 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.

F267 . . . 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.

[F268 (6) 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.]

Textual Amendments

F261 Words in s. 61(1) substituted (1.2.1994) by Finance Act 1989 (c. 26), s. 152(2)(7); S.I. 1994/87, art. 2

F262 Words in s. 61(2) substituted (1.2.1994) by Finance Act 1989 (c. 26), s. 152(3)(7); S.I. 1994/87, art. 2

F263 Words in s. 61(4) substituted (1.2.1994) by Finance Act 1989 (c. 26), s. 152(4)(7); S.I. 1994/87, art. 2

F264 Words in s. 61(5) substituted (1.2.1994) by Finance Act 1989 (c. 26), s. 152(5)(a)(7); S.I. 1994/87, art. 2

F265 Words in s. 61(5) omitted (1.2.1994) by virtue of Finance Act 1989 (c. 26), s. 152(5)(b)(7); S.I. 1994/87, art. 2

F266 Words in s. 61(5) substituted (1.2.1994) by Finance Act 1989 (c. 26), s. 152(5)(c)(7); S.I. 1994/87, art. 2

F267 Words in s. 61(5) omitted (1.2.1994) by virtue of Finance Act 1989 (c. 26), s. 152(5)(d)(7); S.I. 1994/87, art. 2

F268 S. 61(6) added (1.2.1994) by Finance Act 1989 (c. 26), s. 152(6)(7); S.I. 1994/87, art. 2

Modifications etc. (not altering text)

C121 S. 61 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

62 Priority of claim for tax. U.K.

(1) [F269 If 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, [F269 the 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 [F269 such sums as have fallen due at or before the date of seizure].

[F270 (1A) 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) [F271 If 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 [F271 may proceed] to the sale thereof, as prescribed by this Act, for the purpose of obtaining payment of the whole of [F271 those 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.

F272 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F269 Words in s. 62(1) substituted by Finance Act 1989 (c. 26), s. 153(2).

F270 S. 62(1A) inserted by Finance Act 1989 (c. 26), s. 153(3).

F271 Words in s. 62(2) substituted by Finance Act 1989 (c. 26), s. 153(4).

F272 A development land tax provision added by Development Land Tax Act 1976 (c. 24) Sch.8 para.17. Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54), s.98(6), Sch.27 Part X.

[F273 63 Recovery of tax in Scotland U.K.

(1) 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 [F274 insofar 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.]

F275 [(4) 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.]]

Subordinate Legislation Made

P1 S. 63(1): s. 63(1) power exercised by S.I.1991/1920

Textual Amendments

F273 Ss 63, 63A substituted for s. 63 (30.11.1988) by Debtors (Scotland) Act 1987 (c. 18), s. 74(1), Sch. 4 para. 2; S.I. 1988/1818 (C. 66).

F274 Finance Act 1989 (c. 26), s. 154(2).

F275 Finance Act 1989 (c. 26), s. 154(3).

[F273 63A Sheriff officer’s fees and outlays. U.K.

(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.]

Textual Amendments

F273 Ss 63, 63A substituted for s. 63 (30.11.1988) by Debtors (Scotland) Act 1987 (c. 18), s. 74(1), Sch. 4 para. 2; S.I. 1988/1818 (C. 66).

64 Priority of claim for tax in Scotland. U.K.

(1) [F276 If 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, [F277 the 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 [F277 such sums as have fallen due at or before the date of poinding or, as the case may be, other diligence or assignation].

[F278 (1A) 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) [F279 If 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 [F279 proceedings] 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.

F280 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F276 Finance Act 1989 (c. 26), s. 155(2)(a).

F277 Words in s. 64(1) substituted by Finance Act 1989 (c. 26), s. 155(2)(b)(c).

F278 Finance Act 1989 (c. 26), s. 155(3)

F279 Words in s. 64(2) substituted by Finance Act 1989 (c. 26), s. 155(4)(a)(b).

F280 A development land tax provision added by Development Land Tax Act 1976 (c. 24) Sch.8 para.18. Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54), s.98(6), Sch.27 Part X.

Court proceedings U.K.

65 Magistrates’ courts. U.K.

(1) Where [F281 the 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

[F282 (a) 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 [F283 in proceedings under Article 62 of the Magistrates’ Courts (Northern Ireland) Order 1981].

[F284 (5) 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.]

Subordinate Legislation Made

P2 S. 65: power exercised (11.9.1989) by S.I. 1989/1300.

P3 S. 65(5): power exercised (16.7.1991) by S.I.1991/1625.

Textual Amendments

F281 Words in s. 65(1) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 19(1); S.I. 1998/3173, art. 2

F282 Words in s. 65(3) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 19(2); S.I. 1998/3173, art. 2

F283 Finance Act 1984 (c. 43), s. 57(1).

F284 Finance Act 1984 (c. 43), s.57(1)(c).

66 County courts. U.K.

(1) [F285 Tax 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.

[F286 (2) 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.]

F287 (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F288 (3) 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.]

(4) 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 [F289 (Northern Ireland) Order 1980] (general civil jurisdiction) shall apply for the purposes of this section in Northern Ireland.

Textual Amendments

F285 Words in s. 66(1) substituted by S.I. 1991/724, art. 2(8), Sch. Pt. I

F286 Finance Act 1984 (c. 43), s.57(2).

F287 S. 66(2A) repealed by S.I. 1991/724, art. 2(8), Sch. Pt. I

F288 S. 66(3) substituted by S.I. 1991/724, art. 2(8), Sch. Pt. I

F289 S.I. 1980/397 (N.I.3), art 68(2), Sch. 1 Part II with effect from 19 April 1980.

Modifications etc. (not altering text)

C122 S. 66 extended by S.I. 1991/724, art. 2(1)(f)

C123 S. 66 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

S. 66 applied by Finance Act 1981 (c. 35), s.134, Sch.17 para.18 (special tax on banking deposits)

67 Inferior courts in Scotland. U.K.

(1) In Scotland, where the amount of tax for the time being due and payable under any assessment [F290 does not exceed the sum for the time being specified in section 35(1)(a) of the Sheriff Courts (Scotland) Act 1971] the tax may, 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 commenced in the name of a collector in the sheriff court F291 ... .

(2) Sections 65 and 66 above shall not apply in Scotland.

Textual Amendments

F290 Finance Act 1976 (c. 40), s.58(1) having effect on 1 September 1976.

F291 Sheriff's small debt court abolished from 1 September 1976 by Sheriff Courts (Scotland) Act 1971 (c.58), s.35(2). Words omitted repealed by Finance Act 1976 (c. 40), s.58(1), Sch.15 Part III from that date..

68 High Court, etc. U.K.

(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 .

Modifications etc. (not altering text)

C124 S. 68 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

S. 68 applied by Finance Act 1981 (c. 35), s.134, Sch.17 para.18 (special tax on banking deposits).

Supplemental U.K.

69 Interest on tax. U.K.

[F292 A 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),

as if it were tax charged and due and payable under the assessment to which it relates [F293 or, [F294 if it is a penalty or surcharge imposed in respect of, or if it is interest on, tax] which is not in fact assessed, as if it were tax charged and due and payable under an assessment].

Textual Amendments

F292 Words in s. 69 substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 20(a); S.I. 1998/3173, art. 2

F293 Words in s. 69 added (30.9.1993) by Finance (No. 2) Act 1987 (c. 51), ss. 86(1), 95(2)(3); S.I. 1992/3066, art. 2(2)(a)

F294 Words in s. 69 substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 20(b); S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C125 S. 69 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

C126 S. 69 applied (with modifications) by Finance Act 1981 (c. 35), s.134, Sch.17 para.18 (special tax on banking deposits).

C127 S. 69 modified by Finance Act 1989 (c. 26), s. 157(5)

70 Evidence. U.K.

(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.

(2) A certificate of a collector

[F295 (a) 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.

[F296 (3) [F297 A 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.

F298 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F295 Words in s. 70(2) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 21(1); S.I. 1998/3173, art. 2

F296 Finance Act 1989 (c. 26), s. 160(3).

F297 S. 70(3) ceases to have effect (with effect in accordance with s. 199(2)(3) of the amending Act) by virtue of Finance Act 1994 (c. 9), Sch. 19 para. 21(2); S.I. 1998/3173, art. 2

F298 S. 70(5) repealed by Finance Act 1989 (c. 26), s. 187, Sch. 17 Part VIII

Modifications etc. (not altering text)

C128 S. 70 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

S. 70 applied (with modifications) by Finance Act 1981 (c. 35), s. 134, Sch. 17 para. 18 (special tax on banking deposits).

C129 S. 70(2): see—Finance (No. 2) Act 1987 (c. 51), s. 86(3)—the reference to s. 86 includes a reference to Taxes Management Act 1970 s. 87A for accounting periods ending after a day to be appointed; Finance Act 1988 (c. 39), Sch. 5 para. 11(2)—reference to s. 86 includes a reference to Finance Act 1988 Sch. 5 para. 3(4)—interest on underwriters' liabilities.

[F299 70A Payments by cheque. U.K.

(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).]

Textual Amendments

F299 S. 70A inserted (with effect in accordance with s. 199(2)(3), Sch. 19 para. 22(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 22(1); S.I. 1998/3173, art. 2

PART VII U.K. PERSONS CHARGEABLE IN A REPRESENTATIVE CAPACITY, ETC.

Income Tax U.K.

71 Bodies of persons. U.K.

(1) Subject to [F300 sections 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 .

Textual Amendments

F300 Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 32.

Modifications etc. (not altering text)

C130 See Finance Act 1981 (c. 35), s.134, Sch.17 para.18—application of this section to the special tax on banking deposits.

72 Trustees, guardians, etc., of incapacitated persons. U.K.

(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.

Modifications etc. (not altering text)

C131 S. 72 restricted (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. 5(a)

73 Further provision as to infants. E+W+N.I.

If a person chargeable to income tax is an infant, then his [F301 parent , guardian or tutor][F301 parent 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.

Textual Amendments

F301 Words in s. 73 substituted (S.) (25.9.1991) by Age of Legal Capacity (Scotland) Act 1991 (c. 50, SIF 49:8), ss. 10(1), 11(2), Sch. 1 para.33 (with s. 1(3))

74 Personal representatives. U.K.

(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 .

Modifications etc. (not altering text)

C132 See—Taxes Management Act 1970 (c. 9), s.40(1)—time limit for assessment, etc.Taxes Management Act 1970 (c. 9), s.100(5)—recovery of fine or penalty incurred by a person who has died.Income and Corporation Taxes Act 1988 (c. 1), ss. 60, 62and 63—liability of executors, etc., for income tax on profits of trade or profession of deceased person. Income and Corporation Taxes Act 1988 (c. 1), s. 67—right of executors, etc., to claim relief for cessation of investment income where source retained. Income and Corporation Taxes Act 1988 (c. 1), s. 113—liability of executors for income tax on partnership profits where partner deceased. Income and Corporation Taxes Act 1988 (c. 1), s. 285—collection from deceased wife's executors, etc., of tax assessed on husband attributable to her income and unpaid. Income and Corporation Taxes Act 1988 (c. 1), s. 286—right of husband to disclaim liability for tax on deceased wife's income. Income and Corporation Taxes Act 1988 (c. 1), s. 525—effect of death, etc., on certain charges in respect of patent rights.

C133 SeeFinance Act 1981 (c. 35), s.134, Sch.17 para.18—application of this section to the special tax on banking deposits.

75 Receivers appointed by a court. U.K.

(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 .

Modifications etc. (not altering text)

C134 SeeFinance Act 1981 (c. 35), s.134, Sch.17 para.18—application of this section to the special tax on banking deposits.

76 Protection for certain trustees, agents and receivers. U.K.

(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 U.K.

77 Application of Part VII to capital gains tax. U.K.

(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 F302 . . . , 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.

Textual Amendments

F302 Words omitted repealed for 1973—74 et seq. by Finance Act 1971 (c. 68), ss. 37, 38, Sch.14 Part II.

F303 77A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F303 S. 77A added by Development Land Tax Act 1976 (c. 24) Sch.8 para.19. Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54), s.98(6), Sch.27 Part X.

PART VIII U.K. CHARGES ON NON-RESIDENTS

Income tax U.K.

78 Method of charging non-residents. U.K.

(1) Subject to [subsection (2) below and F304 ] section [43 F305 ] of the principal Act (Schedule A etc.) a person not resident in the United Kingdom, whether a British subject or not, shall be assessable and chargeable to income tax in the name of any such trustee, guardian, tutor, curator or committee as is mentioned in section 72 of this Act, or of any branch or agent, whether the branch or agent has the receipt of the profits or gains or not, in like manner and to the like amount as such non-resident person would be assessed and charged if he were resident in the United Kingdom and in the actual receipt of such profits or gains .

F306 [(2) Subject to the following provisions of this section, a person who is not resident in the United Kingdom shall not, by virtue of this section, be chargeable in the name of an agent in respect of profits or gains arising from investment transactions carried out by the agent if—

(a) the agent is carrying on a business of providing investment management services to a number of clients of whom the non-resident person is one; and

(b) the investment transactions concerned were carried out in the ordinary course of the business referred to in paragraph (a) above; and

(c) the remuneration which the agent receives for the provision of investment management services to the non-resident person is at a rate which is not less than that which is customary for that class of business; and

(d) in the case of profits or gains which are chargeable to tax as the profits or income of the non-resident person from carrying on a trade in the United Kingdom through a branch or agency, the agent carrying out the investment transaction is also the agency through which the trade is carried on;

and in the case of an agent who provides investment management services as part only of a business, paragraphs (a) to (d) above shall apply as if that part were a separate business.

(3) In subsection (2) above “investment transactions” means—

[F307 (a) transactions in shares, stock, futures contracts, options contracts or securities of any description not mentioned in this paragraph, but excluding futures contracts or options contracts relating to land,]

(b) transactions on a recognised futures exchange, within the meaning of the [F308 1992 Act], and

(c) the placing of money at interest,

and for the purposes of that subsection an agent carries out such a transaction on behalf of his client whether he undertakes the transaction himself or by giving instructions to another person.

F309 [(3A) For the purposes of subsection (3) above a contract is not prevented from being a futures contract or an options contract by the fact that any party is or may be entitled to receive or liable to make, or entitled to receive and liable to make, only a payment of a sum (as opposed to a transfer of assets other than money) in full settlement of all obligations.]

(4 )F310 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Subsection (2) above does not apply if the non-resident person and the agent are connected with each other, within the terms of section [839 F311 ] of the principal Act.]

Textual Amendments

F304 Finance Act 1985 s.50for 1985—86et seq. for profits or gains chargeable to income tax and for accounting periods ending on or after1April1985for profits etc. chargeable to corporation tax.

F305 Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 32.

F306 S. 78(2)-(5) inserted by Finance Act 1985 (c. 54), s. 50for1985—86 et seq. for profits or gains chargeable to income tax and for accounting periods ending on or after1April1985for profits etc. chargeable to corporation tax.

F307 S. 78(3)(a) substituted (25.7.1991) by Finance Act 1991 (c. 31),, s. 81(2)(5)

F308 Words in s. 78(3)(b) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(2) (with ss. 60, 101(1), 171, 201(3)).

F309 S. 78(3A) inserted (25.7.1991) by Finance Act 1991 (c. 31),, s. 81(3)(5)

F310 S. 78(4) repealed (25.7.1991) by Finance Act 1991 (c. 31),, ss. 81(4)(5), 123, Sch. 19 Pt. V Note 1.

F311 Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 32.

Modifications etc. (not altering text)

C135 See Income and Corporation Taxes Act 1988 (c. 1), s. 43—s. 78not applicable to tax on profits within Sch. A,or in certain cases Sch. D Case VI,where payment made direct to person whose usual place of abode is outside the United Kingdom.

79 Profits from branch or agency. U.K.

A non-resident person shall be assessable and chargeable to income tax in respect of any profits or gains arising, whether directly or indirectly, through or from any branch or agency, and shall be so assessable and chargeable in the name of the branch or agent.

80 Charge on percentage of turnover. U.K.

(1) Where it appears to the inspector or, on appeal, to the General or Special Commissioners, that the true amount of the profits or gains of any non-resident person chargeable with income tax in the name of a resident person cannot in any case be readily ascertained, the inspector or Commissioners may, if he or they think fit, assess and charge the non-resident person on a percentage of the turnover of the business done by the non-resident person through or with the resident person in whose name he is chargeable as aforesaid, and the inspector may by notice require the resident person to deliver a return of the business so done by the non-resident person through or with the resident person.

(2) The amount of percentage under subsection (1) of this section shall in each case be determined, having regard to the nature of the business, by the inspector or Commissioners.

(3) If either the resident person or the non-resident person is dissatisfied with the percentage as confirmed or determined by the General or Special Commissioners on appeal, he may within four months of the determination, require the Commissioners to refer the question of the percentage to a referee or board of referees to be appointed for the purpose by the Treasury and the decision of the referee or board shall be final and conclusive.

Modifications etc. (not altering text)

C136 See Finance Act 1989 s. 182 (in Part II Vol. 5)—disclosure of information.

81 Taxation on basis of merchanting profit. U.K.

Where a non-resident person is chargeable to income tax in the name of any branch or agent in respect of any profits or gains arising from the sale of goods or produce manufactured or produced out of the United Kingdom by the non-resident person, the person in whose name the non-resident person is so chargeable may, by notice included in a return of income delivered within six years from the end of the year of assessment for which he is chargeable, elect to be assessed in respect of those profits or gains on the basis of the profits which might reasonably be expected to have been earned by a merchant or, where the goods are retailed by or on behalf of the manufacturer or producer, by a retailer of the goods sold, who had bought from the manufacturer or producer direct.

82 Savings. U.K.

(1) Nothing in this Part of this Act shall render a non-resident person chargeable in the name of a broker or in the name of an agent not being an authorised person carrying on the regular agency of the non-resident person, in respect of profits or gains arising from sales or transactions carried out through such a broker or agent:

Provided that where sales or transactions are carried out on behalf of a non-resident person through a broker in the ordinary course of his business as such and the broker—

(a) is a person carrying on bona fide the business of a broker in the United Kingdom, and

(b) receives in respect of the business of the non-resident person which is transacted through him remuneration at a rate not less than that customary in the class of business in question, then, notwithstanding that the broker is a person who acts regularly for the non-resident person as such broker, the non-resident person shall not be chargeable in the name of that broker in respect of profits or gains arising from those sales or transactions.

In this subsection, “broker” includes a general commission agent.

(2) The fact that a non-resident person executes sales or carries out transactions with other non-residents which would make him chargeable in pursuance of this Part of this Act in the name of a resident person shall not of itself make him chargeable in respect of profits arising from those sales or transactions .

Modifications etc. (not altering text)

C137 SeeCapital Gains Tax Act 1979 (c. 14), s.12(3)— “branch or agency”

in Capital Gains Tax Act 1979 (capital gains)excludes person exempt unders.82.

83 Responsibilities and indemnification of persons in whose name a non-resident person is chargeable. U.K.

(1) A person in whose name a non-resident person is chargeable 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.

(2) A person who has been charged under the Income Tax Acts in respect of any non-resident 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 .

Modifications etc. (not altering text)

C138 SeeFinance Act 1981 s.134and Sch.17 para.18—application of this section to the special tax on banking deposits.

Capital gains tax U.K.

84 Gains from branch or agency. U.K.

(1) A non-resident person shall be assessable and chargeable to capital gains tax in respect of any chargeable gains arising, whether directly or indirectly, through or from any branch or agency, and shall be so assessable and chargeable in the name of the branch or agent.

M3 (2) The person in whose name the non-resident person is chargeable shall be answerable for all matters required to be done under the enactments relating to capital gains tax for the purpose of assessment and payment of that tax.

(3) A person who has been charged under this section in respect of any non-resident person 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 enactments relating to capital gains tax.

Marginal Citations

M3 1952 s.374; 1968 Sch.XII 13.

Corporation tax U.K.

85 Application of Part VIII to corporation tax. U.K.

(1) The provisions of this Part of this Act relating to income tax, so far as they are applicable to tax chargeable on a company, shall apply with any necessary adaptations in relation to corporation tax chargeable on companies not resident in the United Kingdom.

[(2) Subsection (2) of section 83 above shall apply—

(a) to corporation tax to which a person is chargeable in respect of a non-resident company and which has become due and payable without the making of an assessment; and

(b) to interest to which he is chargeable on such tax under section 87A below,

as it applies (by virtue of subsection (1) above) to corporation tax which has been assessed on him in respect of such a company F312 .]

Textual Amendments

F312 Finance (No. 2) Act 1987 s. 95and Sch. 6 para. 7for tax in respect of accounting periods ending after a day to be apointed (not earlier than 31 March 1992), and interest on such tax.

F313 85A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F313 S. 85A added by Development Land Tax Act 1976 (c. 24) Sch.8 para.20. Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54), s.98(6), Sch.27 Part X.

PART IX U.K. INTEREST ON OVERDUE TAX

Modifications etc. (not altering text)

C139 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)

C140 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.

[F314 86 Interest on overdue income tax and capital gains tax. U.K.

(1) The following, namely—

(a) any amount on account of income tax which on any date becomes due and payable in accordance with section 59A of this Act, and

(b) any income tax or capital gains tax which on any date becomes due and payable in accordance with section 59B(3) or (4) of this Act,

shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from that date until payment.

(2) Any income tax or capital gains tax which becomes due and payable in accordance with section 55 or section 59B(5) or (6) of this Act shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the relevant date until payment; and in this subsection “the relevant date” means the date mentioned in section 59B(3) or (4) of this Act.

(3) Subsections (1) and (2) above apply even if the date there mentioned is a non-business day within the meaning of section 93 of the Bills of Exchange Act 1882.

(4) 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 both of the amounts (the section 59A amounts) payable by him in accordance with that section, and

(b) an amount (the section 59B amount) becomes payable by him in accordance with section 59B of this Act, or would become so payable but for one or more payments on account made otherwise than under section 59A of this Act,

interest shall be payable under this section as if each of the section 59A amounts had been equal to the aggregate of that amount and 50 per cent. of the section 59B amount, or the amount given by section 59A(2) of this Act, whichever is the less.

(5) Where subsection (4) above applies as regards a year of assessment, so much (if any) of 50 per cent. of the section 59B amount as does not affect the amount of interest payable on either of the section 59A amounts shall be added to 50 per cent. of the section 59B amount for the purpose of determining the amount of interest payable on the other of those amounts.

(6) 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 one of the amounts (the section 59A amount) payable by him in accordance with that section, and

(b) an amount (the section 59B amount) becomes payable by him in accordance with section 59B of this Act, or would become so payable but for one or more payments on account made otherwise than under section 59A of this Act,

interest shall be payable under this section as if the section 59A amount had been equal to the aggregate of that amount and the section 59B amount, or the amount given by section 59A(2) of this Act, whichever is the less.

(7) Where as regards a year of assessment—

(a) two amounts (the section 59A amounts) become payable by any person in accordance with section 59A of this Act, and

(b) an amount (the section 59B amount) subsequently becomes repayable to him in accordance with section 59B of this Act,

so much of any interest payable under this section on either of the section 59A amounts as is not attributable to the amount (if any) by which that amount exceeds 50 per cent. of the section 59B amount shall be remitted.

(8) Where subsection (7) above applies, so much (if any) of 50 per cent. of the section 59B amount as does not affect the amount of interest remittable as respects either of the 59A amounts shall be added to 50 per cent. of the section 59B amount for the purpose of determining the amount of interest remittable as respects the other of those amounts.

(9) Where as regards a year of assessment—

(a) a single amount (the section 59A amount) becomes payable by any person in accordance with section 59A of this Act, and

(b) an amount (the section 59B amount) subsequently becomes repayable to him in accordance with section 59B of this Act,

so much of any interest payable under this section on the section 59A amount as is not attributable to the amount (if any) by which that amount exceeds the section 59B amount shall be remitted.

(10) In determining for the purposes of subsections (4) to (9) above the amount which is payable by or repayable to any person in accordance with section 59B of this Act, no account shall be taken of any amount which is payable by him by way of capital gains tax.]

Textual Amendments

F314 S. 86 substituted (with effect in accordance with s. 199(2)(3), Sch. 19 para. 23(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 23(1); S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C141 S. 86 applied (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. 6(1)

C142 S. 86 excluded (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 16(3), 177(4), Sch. 2 para. 6(1) (as substituted temporarily until 19.4.1993 by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 6, 7(2), Sch. 4 para. 8; S.I. 1993/1025, art. 2)

C143 S. 86 excluded (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. 6(1) (as substituted temporarily until 19.4.1993 by Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9), ss. 6, 7(2), Sch. 4 para. 7; S.I. 1993/1079, art. 2)

C144 S. 86 modified by Income and Corporation Taxes Act 1988 (c. 1), s. 767B(1)(a) (as inserted (with effect in accordance with s. 135(6) of the amending Act) by Finance Act 1994 (c. 9), s. 135(1)(6))

F315 86A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F315 S. 86A added byDevelopment Land Tax Act 1976 (c. 24) Sch.8 para.21. Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54), s.98(6), Sch.27 Part X.

[F316 87 Interest on overdue advance corporation tax and income tax on company payments. U.K.

(1) Any tax assessable in accordance with Schedule [F317 13] or [F317 16] to [F317 the principal Act] shall carry interest at the [F318 rate applicable under section 178 of the Finance Act 1989] from the date when the tax becomes due and payable until payment .

(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 [F317 13] 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 [F317 16] 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.

F319 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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 [F317 13] 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 [F317 16] for any return period. F319

(6) In this section “return period” means a period for which a return is required to be made under the said Schedule [F317 13] or [F317 16].

(7) 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.

[F320 (8) 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.]]

Textual Amendments

F316 S. 87 substituted by Finance Act 1972 (c. 41), s.111, Sch.24 para.10 for 1973—74 et seq.

F317 Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 32.

F318 Finance Act 1989 (c. 26), s. 179(1)(b); S.I. 1989/1298 (from 18 August 1989)

F319 S. 87(4) repealed (with effect in respect of assessments relating to an accounting period beginning on or after 19.4.1993) by Finance Act 1989 (c. 26), s. 158; S.I. 1993/753

F320 Added by Finance (No.2) Act 1975 (c. 45), s.46(3)(b) in relation to tax charged by assessments notices of which were issued after 31 July 1975.

Modifications etc. (not altering text)

C145 See—S.I. 1986/482, reg. 7(4)—application of s. 87 to tax to which Finance Act 1972 Sch. 20 applies by virtue of S.I. 1986/482, reg. 7; S. I. 1987/530, reg. 14(2)—modification of s. 87 in relation to tax assessable in respect of non-resident entertainers and sportsmen.

C146 S. 87(1)(7)(8) applied (1.10.1993) by S.I. 1993/2004, reg.11(10)

C147 See—Finance Act 1981 (c. 35), s.134, Sch.17 para.15(4)—application of this section to the special tax on banking deposits.

[F321 87A Interest on overdue corporation tax etc. U.K.

(1) Corporation tax shall carry interest at the [F322 rate applicable under section 178 of the Finance Act 1989] from the date when the tax becomes due and payable (in accordance with [F323 section 59D of this Act]) until payment.

(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 M4 Bills of Exchange Act 1882.

(3) In relation to corporation tax assessed by virtue of section [F324 346(2) or 347(1) of the principal Act, [F325 137(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) [F326 Subject to subsection (7) below]in any case where—

(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 [F327 239 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 [F327 239] 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).

F328 [(4A) 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

(c) disregarding the effect of subsection (5) or (6) (as the case may be) of that section, 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 resulting from the claim under subsection (5) or (6) of that section 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.]

(5) A sum assessed on a company by such an assessment as is referred to in [F329 section 252(5) of the principal Act] (recovery of payment of tax credit or interest on such a payment) shall carry interest at the [F330 rate 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.

F331 [(6) 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.]]

Textual Amendments

F321 S. 87A inserted by Finance (No. 2) Act 1987 (c. 51), ss. 85, 95(2)

F322 Finance Act 1989, s. 179(1)(b) and S.I. 1989/1298. Previously “prescribed rate”. And see S.I. 1989/1297 for regulations made, and interest rate set, under Finance Act 1989, s. 178

F323 Words in s. 87A(1) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 24; S.I. 1998/3173, art. 2

F324 Income and Corporation Taxes Act 1988 (c. 1), s. 844, Sch. 29 para. 10(4)(b). Previously “266(2), section 267(3C), section 277(1) or section 278(5) of the Taxes Act”.

F325 Words in s. 87A(3) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(9) (with ss. 60, 101(1), 171, 201(3))

F326 Words in s. 87A(4) inserted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para. 4(1)

F327 Income and Corporation Taxes Act 1988 (c. 1), s. 844, Sch. 29 para. 10(4)(c)(d). Previously “85 of the Finance Act 1972” and “85”respectively.

F328 S. 87A(4A) inserted (27.7.1993) by 1993 c. 34, s. 170, Sch. 18 para.1

F329 Income and Corporation Taxes Act 1988 (c. 1), s. 844, Sch. 29 para. 10(4)(d). Previously “subsection (2) of section 102 of the Finance Act 1972”

F330 Finance Act 1989, s. 179(1)(b), S.I. 1989/1298. Previously “prescribed rate”. And see S.I. 1989/1297 for regulations made and interest rate set under Finance Act 1989, s. 178

F331 S. 87A(6)(7) substituted (27.7.1993) for s. 87A(6) by 1993 c. 34, s. 120, Sch. 14 para. 4(2)

Modifications etc. (not altering text)

C148 S. 87A modified by Income and Corporation Taxes Act 1988 (c. 1), s. 438A, Sch. 19AB para. 3 (as inserted (25. 7. 1991) by Finance Act 1991 (c. 31), s. 49, Sch. 8)

C149 S. 87A extended (with modifications) by Income and Corporation Taxes Act 1988 (c. 1), s. 438A, Sch. 19AB para. 5(6) (as inserted (25.7.1991) by Finance Act 1991 (c. 31), s. 49, Sch. 8)

S. 87A applied (with modifications) (2.10.1992) by S.I. 1992/2326, reg. 6(5)(6)

C150 S. 87A modified by Income and Corporation Taxes Act 1988 (c. 1), s. 767B(1)(b) (as inserted (with effect in accordance with s. 135(6) of the amending Act) by Finance Act 1994 (c. 9), s. 135(1)(6))

C151 S. 87A modified (3.5.1994) by Finance Act 1994 (c. 9), s. 250(4)(5)

Marginal Citations

M4 1882 c. 61.

88 Interest on tax recovered to make good loss due to taxpayer’s fault. U.K.

(1) 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 F332 ,]

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 F333 ] interest at the [rate applicable under section 178 of the Finance Act 1989 F334 ] from the date on which the tax ought to have been paid until payment .

M5 (2) This section shall not apply in relation to [] tax under Schedule [13 or 16 to the principal Act F335 ].

[(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 F336 .]

M6 (4) 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.

M7 (5) For the purposes of this section thedate when tax ought to have been paid shall be taken to be—

(a) 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,

(b) in the case of one-half of any income tax specified in section [5(2) F337 ] of the principal Act, the following 1st July,

[(c) in the case of any income tax specified in section [5(4) F337 ] of the principal Act, the following [1st December F338 ] F339 ,]

M8 (d) in the case of capital gains tax, [1st December F338 ] in the year of assessment next following the year for which the tax is charged,

M9 (e) in the case of corporation tax, the date nine months from the end of the accounting period for which the tax is charged F340 . . . F341

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F342

[(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 F343 .]

(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 F344 .]

Textual Amendments

F332 Finance Act 1989 (c. 26), s. 159(2)in relation to failures occurring, and errors in any information or documents delivered, on or after 27 July 1989.

F333 Finance Act 1989 (c. 26), s. 160(1).

F334 Finance Act 1989 (c. 26), s. 179(1)(b)(i); S.I. 1989/1298from 18 August 1989

F335 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 32previously amended by Finance Act 1972 s.111andSch.24 para.11.

F336 Finance Act 1989 (c. 26), s. 161.

F337 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 32

F338 Finance Act 1980 s.61(4)for1980—81et seq.

F339 Finance Act 1971 ss.37and38andSch.6 para.87for1973—74et seq.

F340 Subs. (e)omitted by Finance (No. 2) Act 1987 s. 86(4)for accounting periods ending after a day to be appointed.

F341 Words repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) s. 844and Sch. 31See 1987edition for text.

F342 A development land tax provision added byDevelopment Land Tax Act 1976 (c. 24) Sch.8 para.22 Development Land Tax Act 1976repealed byFinance Act 1985 s.98(6)andSch.27 Part X.

F343 Finance (No.2) Act 1975 s.46(4)in relation to tax charged by assessments where notices issued after31July1975.

F344 Finance Act 1989 s. 159(3)in relation to failures occuring, and errors in any information or documents delivered, on or after 27 July 1989.

Modifications etc. (not altering text)

C152 S. 88 extended (25.7.1991) by Finance Act 1991 (c. 31, SIF 63:1), s. 33(3)(c)

C153 S. 88(1)(4)(5)(a)(b) applied (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. 6(1)

C154 S. 88(1)(4)(5)(a)(b) extended (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 16(3), 177(4), Sch. 2 para. 6(1) (as substituted temporarily until 19.4.1993 by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 6, 7(2), Sch. 4 para. 8; S.I. 1993/1025, art.2)

C155 S. 88(1)(4)(5)(a)(b) extended (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. 6(1) (as substituted temporarily until 19.4.1993 by Social Security (Consequential Provisions) Act 1992 (c. 9), ss. 6, 7(2), Sch. 4 para. 7; S.I. 1993/1079, art. 2)

C156 SeeFinance Act 1984 Sch.14 para.2(3)(b)—Finance Act 1984 Sch.14not have effect to allow postponement of capital gains tax carrying interest by virtue ofs.88(1),unless the interest by reason of neglect of any person and that neglect is remedied before1July1985.

C157 See Finance (No. 2) Act 1987 s. 86(4)(a)for wording to be inserted for accounting periods ending after a day to be appointed.

C158 SeeFinance Act 1966 s.27andSch.6 para.23(5)—s.88applied to certain proceedings for the recovery of excessive overspill relief underFinance Act 1965 s.84 (transitional relief for companies with overseas trading income).

C159 See—Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 14 para. 7(3)(c)—application of s. 88to sums claimed under s. 266(5)(b)to which the claimant was not entitled.Finance Act 1989 s. 57(3)—application of s. 88to medical insurance relief.

Marginal Citations

M5 1967 Sch.XI 10(3), 12(3).

M6 1960

s.58(7).

M7 1960

s.58(2).

M8 1969

Sch.XX 14(5).

M9 1966

Sch.VI 8(2).

[F345 88A Determinations under section 88. U.K.

(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.]

Textual Amendments

F345 Finance Act 1989 (c. 26), s. 160(2).

F346 89 The prescribed rate of interest. U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F346 S. 89 repealed (18.8.1989) by Finance Act 1989 (c. 26), ss. 178(7), 187(1), Sch. 17 Part X

90 Disallowance of relief for interest on tax. U.K.

Interest payable under this Part of this Act shall be paid without any deduction of income tax and shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.

Modifications etc. (not altering text)

C160 S. 90 applied (27.7.1993) by 1993 c. 34, s. 173, Sch. 19 Pt. II para.11(5)

C161 See Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 paras. 1(1), 15 (Oil Taxation Acts) regarding modification in relation to petroleum revenue tax and supplementary petroleum duty

C162 See Finance Act 1988 (c. 39), Sch. 5 para. 3(4)—payments on account of tax by underwriters.

C163 See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 19A para. 3as substituted by S.I. 1990 No. 2524.

91 Effect on interest of reliefs. U.K.

(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.

[F347 (1A) 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) Subsection (1A) above has effect subject to section 87A(4) [F348 (6) and (7)] of this Act.]

(2) [F349 Subject to subsection (2A) below] Where relief from tax F350 ... 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.

[F351 (2A) 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 [F352 10 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—

F353 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) affecting tax charged by any assessment to income tax made under Schedule A or Schedule D if either—

F353 (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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 [F354 or

(c) affecting tax charged at a rate other than the basic rate [F355 or the lower rate] on income from which tax has been deducted (otherwise than under section [F356 203] of the principal Act) or is treated as having been deducted, unless it is a relief from the tax so charged].

(4) 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 .

Textual Amendments

F347 S. 91(1A)(1B) inserted (23.7.1987 with effect with respect to accounting periods ending after 30.9.1993) by 1987 c. 51, s. 86(5)(7); S.I. 1992/3066, art.2(2)(a).

F348 Words in s. 91(1B) inserted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para.5

F349 Words in s. 91(2) added (23.7.1987 with effect with respect to accounting periods ending after 30.9.1993) by 1987 c. 51, s. 86(6)(7); S.I. 1992/3066, art.2(2)(a).

F350 Amended in relation to development land tax byDevelopment Land Tax Act 1976 Sch.8 para.24and amendment repealed by1985 s.98(6)andSch.27 Part X.

F351 S. 91(2A) added (23.7.1987 with effect with respect to accounting periods ending after 30.9.1993) by 1987 c. 51, s. 86(6)(7); S.I. 1992/3066, art.2(2)(a).

F352 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 29 para. 10(6). Previously “90 of the Finance (No. 2) Act 1987”

F353 Words omitted repealed for 1973—74 et seq. by Finance Act 1971 ss. 37, 38, Sch.6 para.88, Sch.14 Part II.

F354 Finance Act 1971 (c. 68), ss.37, 38, Sch.6 para.88, with effect for 1973—74 et seq.

F355 Words in s. 91(3)(c) inserted (16.7.1992 for the year 1992-93 and subsequent years of assessment) by Finance (No. 2) Act 1992 (c. 48), s. 19(2)(7)

F356 Income and Corporation Taxes Act 1988 (c. 1) Sch. 29 para. 32.

Modifications etc. (not altering text)

C164 See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 19A para. 3as substituted by S.I. 1990 No. 2524.

C165 See—Taxes Management Act 1970 (c. 9, SIF 63:1) s.109—application ofs.91in relation to tax underFinance Act 1970 ss.286, 288and289.Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) s.306—s.91not to apply to business expansion scheme relief.

F357 91A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F357 S. 91A added by Development Land Tax Act 1976 (c. 24) Sch.8 para.25. Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54), s.98(6), Sch.27 Part X.

92 Remission in certain cases of interest on tax in arrear by reason of exchange restrictions. U.K.

(1) 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.

(2) 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.

(3) 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.

Modifications etc. (not altering text)

C166 See—Finance (No. 2) Act 1987 (c. 51), s. 86(3)—references to s. 86 include reference to s. 87A for accounting periods ending after a day to be appointed; Finance Act 1988 (c. 39), Sch. 5 para. 10(2)—reference to s. 86 to include a reference to Income and Corporation Taxes Act 1988 (c. 1), Sch. 5 para. 3(4)—interest on underwriters liabilities.

PART X U.K. PENALTIES, ETC.

Modifications etc. (not altering text)

C167 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

C168 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)

C169 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.

[F358 93 Failure to make return for income tax and capital gains tax. U.K.

(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.]

Textual Amendments

F358 S. 93 substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 25; S.I. 1998/3173, art. 2

[F359 93A Failure to make partnership return. U.K.

(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.]

Textual Amendments

F359 S. 93A inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 26; S.I. 1998/3173, art. 2

[F360 94 Failure to make return for corporation tax. U.K.

(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 M10 Companies 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 M11 Companies (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 [F361 whichever is the later of the end of the final day for the delivery of the return and]the 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 [F362 which, 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 [F363 section 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.]

Textual Amendments

F360 S. 94 substituted (23.7.1987 with respect to failures to deliver returns required by notices served under s. 11 after the day to be appointed) by 1987 c. 51, s. 83.

F361 Words in s. 94(6) inserted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para. 6(1)

F362 Words in s. 94(7) substituted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para. 6(2)

F363 Income and Corporation Taxes Act 1988 (c. 1), s. 844, Sch. 29 para 10(7)

Marginal Citations

M10 1985 c. 6.

M11 S.I. 1986/1032 (N.I. 6).

95 Incorrect return or accounts for income tax or capital gains tax. U.K.

(1) Where a person fraudulently or negligently—

(a) delivers any incorrect return of a kind mentioned in [F364 section 8 or 8A of this Act (or either of those sections] as extended by section 12 of this Act F365 ... , or

(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 [F366 the amount of the difference specified in subsection (2) below.]

(2) The difference is that between—

(a) 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

(b) 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; F367 ...

Textual Amendments

F364 Words in s. 95(1)(a) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 27(1); S.I. 1998/3173, art. 2

F365 Repealed by Finance Act 1988 (c. 39), s. 148and Sch. 14 Part VIIIfor 1990-91and subsequent years.

F366 Finance Act 1989 (c. 26), s. 163(1)(a)in relation to returns, statements, declarations or accounts delivered, made or submitted on or after 27 July 1989.

F367 Words in s. 95(3) repealed (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 27(2), Sch. 26 Pt. 5(23); S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C170 S. 95 extended by Finance Act 1991 (c. 31),, s. 33(3)(d)

C171 S. 95 modified by 1988 c. 1, Sch. 6A Pt. II para. 8(4) (as inserted (27.7.1993 with effect for the year 1993-94 and subsequent years of assessment) by 1993 c. 34, s. 73, Sch. 4 paras.7, 8)

C172 See—Finance Act 1966 s.27andSch.6 para.23(4)—ss.95and97applied for purposes ofFinance Act 1966 Sch.6 para.23 (transitional relief for companies with overseas trading income).Income and Corporation Taxes Act 1988 (c. 1), Sch. 14 para. 7(3)(d)—application of s. 95to sums claimed under s. 266(5)(b)to which the claimant was not entitled.Finance Act 1989 (c. 26), s. 57(3)—application of s. 95(3)to medical insurance relief.

C173 See S.I. 1986/1948, reg. 11(3)and S.I. 1989/469 reg. 9—application of s. 95to individual applications to subscribe to personal equity plans.

C174 See Finance Act 1988 (c. 39), s. 35and Sch. 3 paras. 27and28—married couples.

C175 See S.I. 1986/1948, reg. 23(4)—amounts deducted under S.I. 1986/1948 reg. 23(3)to be treated as amounts of income tax deducted at source and not repayable within the meaning of and for the purposes of s. 95(2)(a)

[F368 95A Incorrect partnership return or accounts. U.K.

(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.]

Textual Amendments

F368 S. 95A inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 28; S.I. 1998/3173, art. 2

96 Incorrect return or accounts for corporation tax. U.K.

(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 F369 .]

(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.

Textual Amendments

F369 Finance Act 1989 (c. 26), s. 163(1)(b)in relation to returns, statements, declarations or accounts delivered, made or submitted on or after 27 July 1989.

Modifications etc. (not altering text)

C176 See also Finance Act 1988 (c. 39), ss. 131-132—tax payable by migrating companies.

97 Incorrect return or accounts: supplemental. U.K.

(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.

(2) For the purposes of sections 95 and 96 above, any accounts submitted on behalf of any person shall be deemed to have been submitted by him unless he proves that they were submitted without his consent or connivance .

Modifications etc. (not altering text)

C177 See S.I. 1986/1948, reg. 33(4)and S.I. 1989/469 reg. 28(4)—s. 97(1)to apply to S.I. 1986/1948(personal equity plan regulations) with certain modifications.

C178 See also Finance Act 1988 (c. 39), ss. 131-132—tax payable by migrating companies.

C179 See Finance Act 1966 s. 27and Sch. 6 para. 23(4)—ss. 95and 97applied for purposes of Finance Act 1966 Sch. 6 para. 23 (transitional relief for companies with overseas trading income).

[F370 97AA Failure to produce documents under section 19A. U.K.

(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.]

Textual Amendments

F370 S. 97AA inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 29; S.I. 1998/3173, art. 2

[F371 97A Two or more tax-geared penalties in respect of the same tax. U.K.

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.]

Textual Amendments

F371 s. 97A inserted by Finance Act 1988 (c. 39), s. 129 (s. 97A(a) has effect for the year 1988-89 and subsequent years, and s. 97A(b) has effect for accounting periods ending after 31 March 1989).

98 Special returns, etc. U.K.

(1) [F372 Subject to [F373 the provisions of this section and] section 98A below, where] any person—

(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 [F372 subsections (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) [F374 Subject 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 [F374 £3000].

[F375 (3) 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.

(4) 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.]

[F376 (5) 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”.]

[F377 TABLE

1.	2.
Part III of this Act, F378 . . .	In the principal Act—
Section 51 of this Act
In the principal Act—	section 41(2);
F379 [section 38(5)];
F379 [section 42];	section 124(3);
section 181(1);	section 136(6);
regulations under section 202;	F380 ...
section 217;	section 148(7);
section 226(3) and (4);	section 180(1);
section 234(7)(b), (8) and (9);	regulations under section 202;
[F381 section 246H;]
section 250(6) and (7);	regulations under section 203;
section 272(7);	section 216;
section 310(4) and (5);	section 226(1) and (2);
[F382 regulations under section 326C ]	section 234(5), (6) and (7)(a);
regulations under section 333;	section 250(1) to (5);
regulations under section 476(1);	section 310(1), (2) and (3);
[F383 regulations under section 477A ]	section 313(5);
F384 . . .	[F382 Regulations under section 326C ]
section 482(3);	Regulations under section 333;
regulations under section 482(11);	section 350(1);
section 483;	section 375(5);
Regulations under section 555(7);	regulations under section 476(1);
section 561(8);	[F383 regulations under section 477A ;]
section 588(7);	[F385 section 482(2) ]
regulations under section 602;	regulations under section 482(11);
[F386 regulations under section 605(1A)(b) to (d);]	section 552;
section 605(1),(2),(3)(b) and (4);	regulations under section 555(7);
regulations under section 612(3);	regulations under section 566(1) or (2);
regulations under section 639;	section 577(4);
section 652;	section 588(6);
section 669;	regulations under section 602;
section 680;	[F387 regulations 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);	[F388 section 765A(2)(a) ;]
section 730(8);	section 772(6);
section 737(8);	[F389 Schedule 3, paragraph 6C];
section 745(1);	Schedule 13;
section 755;	regulations under paragraph 7 of Schedule 14;
[F388 section 765A(2)(b) ;]	Schedule 15, paragraph 14(4);
section 768(9);	Schedule 16;
section 772(1) and (3);	Schedule 22, paragraph 2.
section 774(5);	Regulations under section [F390 151 of the 1992 Act].
section 778;	[F391 Sections 23(2), 48 and 49(2) of the Capital Allowances Act 1990 .]
section 815;	Regulations 16 and 17 of the Income Tax (Interest Relief) Regulations 1982.
Schedule 3, paragraph 13(1);	Paragraph 15(3) of Schedule 14 to the Finance Act 1984.
Schedule 5, paragraph 10;	F392 . . .
Schedule 9, [F393 paragraph 6];	[F394 Section 85(1) and (2) of the Finance Act 1988 ]
Schedule 15 paragraph 14(5);	[F395 Regulations under section 57 of the Finance Act 1989.]
F396 . . .	F397 . . .
Schedule 22, paragraph 4.	[F398 Regulations under section 33 of the Finance Act 1991].
Section 32 of the Finance Act 1973.	F399 . . .
Paragraph 2 of Schedule 15 to the Finance Act 1973.	[F400 Section 28(2) of the Finance (No.2) Act 1992.]
Regulations under section [F401 151 of the 1992 Act].	[F402 Paragraphs 2 to 6 of Schedule 5A to the 1992 Act.]
Paragraph [F403 2(9) of Schedule 1 to the 1992 Act].
[F404 Sections 23(4) and 49(4) of the Capital Allowances Act 1990 ]
Section [F405 98 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.
[F406 Section 79(6) of the 1992 Act].
[F407 Regulations under section 57 of the Finance Act 1989 ]
[F408 Section 73 of the Finance Act 1989 ]
[F395 Paragraphs 2 to 4 of Schedule 12 to the Finance Act 1989 ]
[F409 235 of the 1992 Act].
[F398 Regulations under section 33 of the Finance Act 1991]
[F410 Paragraph [F411 10 of Schedule 5 to the 1992 Act]]

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]

Textual Amendments

F372 Finance Act 1989 (c. 26), s. 164(2), (7) in relation to failures beginning, or information etc. furnished, on or after 27 July 1989.

F373 Finance Act 1990 (c. 29), s. 68(3)(a) for transactions carried out on or after 1 July 1990.

F374 Finance Act 1989 (c. 26), s. 164(3), (7) in relation to failures beginning, or information etc. furnished, on or after 27 July 1989.

F375 Finance Act 1989 (c. 26), s. 164(4), (7) in relation to failures beginning, or information etc. furnished, on or after 27 July 1989.

F376 Finance Act 1990 (c. 29), s. 68(3)(b) for transactions carried out on or after 1 July 1990.

F377 Table substituted by Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 9 (see also Finance Act 1988 (c. 39), Sch. 14 Part VI).

F378 Words repealed by Finance Act 1989 (c. 26), ss. 164(5)(a)and 187and Sch. 17 Part VIII in relation to any failure to comply with a notice etc. on or after 27 July 1989.

F379 Entries transferred to column 1 from column 2 by Finance Act 1989 (c. 26), s. 164(5)(b) in relation to any failure to comply with a notice etc. on or after 27 July 1989.

F380 Repealed by Finance Act 1988 (c. 39), s. 148and Sch. 14 Part VI in relation to acquisitions on or after 26 October 1987.

F381 Words in s. 98 inserted (3.5.1994) by Finance Act 1994 (c. 9), Sch. 16 para. 10

F382 Finance Act 1990 (c. 29), s. 28(2).

F383 Finance Act 1990 (c. 29), s. 30and Sch. 5 para. 15.

F384 Words repealed by Finance Act 1989 (c. 26), ss. 164(5)(c), 187, Sch. 17 Part VIII in relation to any failure to comply with a notice etc. on or after 27 July 1989.

F385 Finance Act 1989 (c. 26), s. 164(5)(c)in relation to any failure to comply with a notice etc. on or after 27 July 1989.

F386 Words in s. 98 inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 105(4)(a)

F387 Words in s. 98 inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 105(4)(c)

F388 Finance Act 1990 (c. 29), s. 68(3)(c), (d)respectively.

F389 Words in s. 98 Table substituted (16.7.1992 with effect in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras.4, 6.

F390 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(b)(i) (with ss. 60, 101(1), 171, 201(3)).

F391 Capital Allowances Act 1990 (c. 1), s. 164, Sch. 1 para. 1(3).

F392 Repealed by Capital Allowances Act 1990 (c. 1), s. 164(4), Sch. 2

F393 Finance Act 1990 (c. 29), s. 89and Sch. 14 para. 15 (correction of errors)—deemed to have been made by the Taxes Act 1988.

F394 Finance Act 1988 (c. 39), s. 85(3).

F395 Finance Act 1989 (c. 26), s. 107and Sch. 12 para. 5.

F396 Repealed by Finance Act 1989 (c. 26), s. 187and Sch. 17 Part Von and after 27 July 1989.

F397 Words in s. 98 Table repealed (16.7.1992 with application in relation to claims made after 16.7.1992) by Finance (No. 2) Act 1992 (c. 48), ss. 28, 82, Sch. 18 Pt.VII.

F398 Words in s. 98 Table added (25.7.1991) by Finance Act 1991 (c. 31),, s. 33(2)

F399 Words in s. 98 repealed (with effect in accordance with s. 97 of the repealing Act) by Finance Act 1994 (c. 9), Sch. 26 Pt. 5(10)

F400 Entry in s. 98 Table inserted (16.7.1992 with application in relation to claims made after 16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 28(4)(6).

F401 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(a)(i) (with ss. 60, 101(1), 171, 201(3)).

F402 Words in s. 98 inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 97(6)

F403 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(a)(ii) (with ss. 60, 101(1), 171, 201(3)).

F404 Capital Allowances Act 1990 (c. 1), s. 164and Sch. 1 para. 1(2).Previously

“sections 67(4) of, and paragraph 4(3) of Schedule 12 to, the Finance Act 1980”.

F405 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(a)(iii) (with ss. 60, 101(1), 171, 201(3)).

F406 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10(a)(iv) (with ss. 60, 101(1), 171, 201(3)).

F407 Finance Act 1989 (c. 26), s. 57(2).

F408 Finance Act 1989 (c. 26), s. 73(9).

F409 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(v) (with ss. 60, 101(1), 171, 201(3)).

F410 Words in s. 98 Table inserted (25.7.1991) by Finance Act 1991 (c. 31), s. 89(1), Sch. 16 para. 17

F411 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(a)(vi) (with ss. 60, 101(1), 171, 201(3)).

Modifications etc. (not altering text)

C180 S. 98 applied (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 173(4), Sch. 1, para. 6(7)

S. 98 applied (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 6(7)

C181 S. 98 amended (27.7.1993) by 1993 c. 34, s. 187(8)

C182 S. 98 applied (with modifications) (1.10.1993) by S.I. 1993/2004, reg. 11(12)(13)

C183 See—Taxes Management Act 1970 (c. 9), s. 53(1)—s. 98(3) not applicable where penalty under s. 51 or 52 awarded summarily. Taxes Management Act 1970 (c. 9), s. 119, Sch. 4 para. 10—application of s. 98 in relation to repealed provisions. Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)—Oil Taxation Acts—regarding modifications relating to petroleum revenue tax and supplementary petroleum tax. Finance Act 1981 (c. 35), s. 134, Sch. 17 para. 18—application of this section to the special tax on banking deposits. Social Security Act 1975 (c. 14), Sch. 1 para. 5(2)—s. 98 applied in relation to regulations made under Social Security Act 1975, Sch. 1 para. 5(1) as they apply in relation to regulations made under Income and Corporation Taxes Act 1970 s. 204 (now Income and Corporation Taxes Act 1988 (c. 1), s. 203). Social Security (Northern Ireland) Act 1975 (c. 15), Sch. 1 para. 5(2)—s. 98 applied in relation to regulations made under Social Security (Northern Ireland) Act 1975 Sch. 1 para. 5(1)a s they apply in relation to regulations made under Income and Corporation Taxes Act 1970 s. 204 (now Income and Corporation Taxes Act 1988 (c. 1), s. 203).

[F412 98A Special penalties in the case of certain returns. U.K.

(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—

(a) 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

(b) 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.

(4) 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.]

Textual Amendments

F412 S. 98A inserted by Finance Act 1989 (c. 26), s. 165(1).

Modifications etc. (not altering text)

C184 S. 98A power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(9)-(12)

S. 98A power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(9)-(12)

S. 98A(2)(a) restricted (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(3)

S. 98A(2)(b)(4) modified (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(4)

C185 S. 98A applied (6.4.1993) by S.I. 1993/743, reg. 11(11)

C186 S. 98A applied (6.4.1993) by S.I. 1993/744, reg. 43(12)

C187 S. 98A applied (6.4.1993) by S.I. 1993/744, reg. 104(16)

C188 See—S.I. 1973/334, reg. 30(8)—end of year return by employer; and reg. 51(9)—alternative procedure for direct collection.S.I. 1975/1960, reg. 10—end of year return by contractor.

C189 S. 98A,as modified by para. 5A of Sch. 1 of Social Security Act 1975 (c. 14)as inserted by Social Security Act 1990 (c. 27) Sch. 5),is applied to returns of contributions under regs. 30(7)and 51(10)of the Social Security (Contributions) regs. 1979 (S.I. 1975/591)(as inserted byS.I. 1990/1935).For Northern Ireland see para. 5A of Sch. 1 Social Security (Northern Ireland) Act 1975, art. 19(5)and Sch. 5 Social Security (Northern Ireland) Order 1990and S.R. 1990/350).

C190 S. 98A(2)(a) modified by Finance Act 1989 (c. 26), s. 165(2)

[F413 98B European Economic Interest Groupings. U.K.

(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.

[F414 (2) 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 [F415 subsection (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 [F416 subsections (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.]

Textual Amendments

F413 S. 98B inserted (on and after 1 July 1989) by Finance Act 1990 (c. 29), s. 69, Sch. 11 para. 3(1)

F414 S. 98B(2)(2A)(2B) substituted for s. 98B(2) (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 30(1); S.I. 1998/3173, art. 2

F415 Words in s. 98B(3) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 30(2); S.I. 1998/3173, art. 2

F416 Words in s. 98B(4) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 30(3); S.I. 1998/3173, art. 2

[F417 99 Assisting in preparation of incorrect return, etc. U.K.

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.]

Textual Amendments

F417 S. 99 substituted by Finance Act 1989 (c. 26), s. 166 in relation to assistance and inducements occurring on or after 27 July 1989.

Modifications etc. (not altering text)

C191 See Finance Act 1981 s.134, Sch.17 para.18—application to the special tax on banking deposits.

[F418 99A Certificates of non-liability to income tax. U.K.

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.]

Textual Amendments

F418 S. 99A inserted (25.7.1991) by Finance Act 1991 (c. 31),, s. 82

[F419 100 Determination of penalties by officer of the Board. U.K.

(1) Subject to subsection (2) below and except where proceedings for a penalty have been instituted under section 100D below or a penalty has been imposed by the Commissioners under section 53 of this Act, 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, [F420 or

(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.]

Textual Amendments

F419 Ss. 100-100D substituted for s. 100 by Finance Act 1989 (c. 26), s. 167

F420 Finance Act 1990 (c. 29), s. 69, Sch. 11 para. 3(1) on and after 1 July 1989.

Modifications etc. (not altering text)

C192 Ss. 100-100D power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 100-100D power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

S. 100 restricted (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(4)(b)

[F419 100A Provisions supplementary to section 100. U.K.

(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.]

Textual Amendments

F419 Ss. 100-100D substituted for s. 100 by Finance Act 1989 (c. 26), s. 167

Modifications etc. (not altering text)

C193 Ss. 100-100D power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992, ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 100-100D power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

[F419 100B Appeals against penalty determinations. U.K.

(1) An appeal may be brought against the determination of a penalty under section 100 above and, subject to [F421 sections 93, 93A and 95A of this Act] 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) [F422 Subject 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 section 56 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.]

Textual Amendments

F419 Ss. 100-100D substituted for s. 100 by Finance Act 1989 (c. 26), s. 167

F421 Words in s. 100B(1) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 31(1); S.I. 1998/3173, art. 2

F422 Words in s. 100B(2) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 31(2); S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C194 Ss. 100-100D power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 100-100D power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

[F419 100C Penalty proceedings before Commissioners. U.K.

(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.]

Textual Amendments

F419 Ss. 100-100D substituted for s. 100 by Finance Act 1989 (c. 26), s. 167

Modifications etc. (not altering text)

C195 Ss. 100-100D power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 100-100D power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

[F419 100D Penalty proceedings before court. U.K.

(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.]

Textual Amendments

F419 Ss. 100-100D substituted for s. 100 by Finance Act 1989 (c. 26), s. 167

Modifications etc. (not altering text)

C196 Ss. 100-100D power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 100-100D power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

101 Evidence of profits for purposes of preceding provisions of Part X. U.K.

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 F423 in respect of which tax is charged in the assessment arose or were received F423 as stated therein .

Textual Amendments

F423 Amended in relation to development land tax byDevelopment Land Tax Act 1976 (c. 24) Sch.8 para.27. Development Land Tax Act 1976 repealed byFinance Act 1985 s.98(6)andSch.27 Part X.

Modifications etc. (not altering text)

C197 See Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1) (Oil Taxation Acts) regarding modification in relation to petroleum revenue tax and supplementary petroleum duty

C198 See Income and Corporation Taxes Act 1988 (c. 1), Sch. 5 para. 10(5)—s. 100not to apply to certain penalties on underwriters' agents.

102 Mitigation of penalties. U.K.

The Board may in their discretion mitigate any penalty, or stay or compound any proceedings for [F424 a penalty], and may also, after judgment, further mitigate or entirely remit the penalty.

Textual Amendments

F424 Finance Act 1989 (c. 26), s. 168(4).

Modifications etc. (not altering text)

C199 Ss. 102-104 power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 102-104 power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

C200 See Finance Act 1966 s.27, Sch.6 para.23(7)(b) and S.I. 1966/1191, reg. 4—application of this section in relation to penalties under para.23 (transitional relief to companies with overseas trading income).

[F425 103 Time limits for penalties. U.K.

(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 [F426 the 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.]

Textual Amendments

F425 S. 103 substituted by Finance Act 1989 (c. 26), s. 169.

F426 Words in s. 103(2) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 32; S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C201 Ss. 102-104 power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 102-104 power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

[F427 103A Interest on penalties. U.K.

A penalty under any of the provisions of Part II 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.]

Textual Amendments

F427 S. 103A inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 33; S.I. 1998/3173, art. 2

104 Saving for criminal proceedings. U.K.

The provisions of the Taxes Acts shall not, save so far as is otherwise provided, affect any criminal proceedings for any misdemeanour .

Modifications etc. (not altering text)

C202 Ss. 102-104 power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)99)-(12)

Ss. 102-104 power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

C203 See Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1) (Oil Taxation Acts) regarding modification in relation to petroleum revenue tax and supplementary petroleum duty

C204 See Finance Act 1966 s.27, Sch.6 para.23(7)(b) and S.I. 1966/1191, reg.4—application of this section in relation to penalties under para.23 (transitional relief to companies with overseas trading income).

C205 See—Finance Act 1981 (c. 35), s.134, Sch.17 para.18—application to special tax on banking deposits.

105 Evidence in cases of fraud or wilful default. U.K.

(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—

[F428 (a) 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 [F429 fraudulent 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—

(a) any criminal proceedings against the person in question for any form of [F429 fraudulent conduct] in connection with or in relation to tax, and

(b) any proceedings against him for the recovery of any [F430 tax due from him] F431 [and

(c) any proceedings for a penalty or on appeal against the determination of a penalty.]

Textual Amendments

F428 Finance Act 1989 (c. 26), s. 168(5)(a).

F429 Finance Act 1989 (c. 26), s. 149(5)but not to affect the making of assessments before 1983-84 or for accounting periods ending before 1 April 1983.

F430 Finance Act 1989 (c. 26), s. 168(5)(b).

F431 Finance Act 1989 (c. 26), s. 168(5)(c).

Modifications etc. (not altering text)

C206 SeeIncome and Corporation Taxes Act 1970 s.537andSch.14 para.27(4)— “tax” in s.105 includes excess profits tax and the profits tax.

C207 SeeFinance Act 1981 s.134andSch.17 para.18—application of this provision to the special tax on banking deposits.

106 Refusal to allow a deduction of income tax, and avoidance of agreements for payment without deduction. U.K.

(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 U.K.

107 Criminal liability for false statements made to obtain allowances. U.K.

(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 .

Modifications etc. (not altering text)

C208 See—Taxes Management Act 1970 s.119andSch.4 para.12—1952 s.505remains in force as regards proceedings for offences committed in England and Wales before its repeal by theTheft Act 1968and in Northern Ireland before its repeal by theTheft Act (Northern Ireland) 1969.Finance Act 1981 s.134andSch.17 para.18—application of this section to the special tax on banking deposits.

PART XI U.K. MISCELLANEOUS AND SUPPLEMENTAL

Companies U.K.

108 Responsibility of company officers. U.K.

(1) Everything to be done by a company under the Taxes Acts shall be done by the company acting through the proper officer of the company [F432 or, 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 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.

(2) 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 [F433 Companies 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,

(b) 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 .

F434 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F432 Words in s. 108(1) inserted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para.7

F433 Companies Consolidation (Consequential Provisions) Act 1985 (c. 9), s. 30, Sch. 2 with effect from 1 July 1985.

F434 A development land tax provision added by Development Land Tax Act 1976 Sch. 8 para. 29. Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54), s.98(6), Sch.27 Part X.

Modifications etc. (not altering text)

C209 S. 108 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

C210 See Finance Act 1981 (c. 35), s. 134, Sch.17 para.18—application of this provision to the special tax on banking deposits.

[F435 109 Corporation tax on close company in connection with loans to participators etc. U.K.

(1) The provisions of F436 [sections 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) Section 86 of this Act shall apply in relation to tax under the said F436 [sections 419 and 420] as if F437 [the date given by the Table in subsection (4) of the said section 86 were the last day of the three months following the end of the financial year in which the loan or advance was made].

(3) For the purposes of section [F438 87A] of this Act as applied by subsection (1) above, the date when tax [F439 under the said section [F440 419] became due and payable shall be that determined in accordance with subsection [F440 (3)]of that section].

[F441 (3A) If there is such a repayment of the whole or any part of a loan or advance as is referred to in subsection [F442 (4)] of section [F442 419] of the principal Act, interest under section 87A of this Act on so much of the tax under the said section [F442 419] 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 F436 [419(4)] of the principal Act.

(5) For the purposes of the said section 91, a relief from tax under the said F436 [sections 419 and 420] shall not be treated as affecting tax charged by any assessment unless the assessment is to tax under that section.]

Textual Amendments

F435 Finance Act 1972 (c. 41), s.111, Sch.24 para.13 in relation to times after 5 April 1973 (subject to s.111(3)).

F436 Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 32.

F437 Words substituted by Finance (No.2) Act 1975 (c. 45), s.46(5) in relation to tax charged by assessments where notices issued after 31 July 1975.

F438 Word in s. 109(3) substituted (with effect with respect to loans or advances made (or treated as made) in any accounting period ending after 30.9.1993) by Finance (No. 2) Act 1987 (c. 51), s. 91(2) (with s. 91(4)); S.I. 1992/3066, art. 2(2)(a)

F439 Words in s. 109(3) substituted (with effect with respect to loans or advances made (or treated as made) in any accounting period ending after 30.9.1993) by Finance (No. 2) Act 1987 (c. 51), s. 91(2) (with s. 91(4)); S.I. 1992/3066, art. 2(2)(a)

F440 Words substituted by Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 10(8)(a)

F441 S. 109(3A) inserted (with effect with respect to loans or advances made (or treated as made) in any accounting period ending after 30.9.1993) by Finance (No. 2) Act 1987 (c. 51), s. 91(3) (with s. 91(4)); S.I. 1992/3066, art. 2(2)(a)

F442 Words substituted by Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 10(8)(b)

Valuation U.K.

110 Valuation of land: power of entry. U.K.

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 .

Modifications etc. (not altering text)

C211 SeeInland Revenue Regulation Act 1890 (c. 21), s.11—fine for obstruction of officers.

111 Valuation of assets: power to inspect. U.K.

(1) If for the purposes of F443 [the [F444 1992 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.

F445 (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) 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.

Textual Amendments

F443 Capital Gains Tax Act 1979 (c. 14,) s.157(2), Sch.7 para.8, for 1979—80 et seq.

F444 Words in s. 111(1) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10, para. 2(2) (with ss. 60, 101(1), 171, 201(3))

F445 A development land tax provision added by Development Land Tax Act 1976 Sch. 8 para. 30. Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54), s.98(6), Sch.27 Part X.

Modifications etc. (not altering text)

C212 S. 111(2) fine increased to £25 by virtue of the Criminal Justice Act 1982 (c.48), ss.37, 38, 54 from 11 April 1983 by S.I. 1982/1857; S.I. 1983/24; and to £50 from 1 May 1984 by S.I. 1984/447; S.I. 1984/526 (s. 61).

Documents U.K.

112 Loss, destruction or damage to assessments, returns, etc. U.K.

(1) 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.

F446 (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) In this section, “the Commissioners” means, as the case may require, either the Board or the General or Special Commissioners concerned.

F447 [(3) 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.]

Textual Amendments

F446 A development land tax provision added by Development Land Tax Act 1976 Sch. 8 para. 31. Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54), s.98(6), Sch.27 Part X.

F447 Finance Act 1989 (c. 26), s. 168(6).

Modifications etc. (not altering text)

C213 See Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1) (Oil Taxation Acts) regarding modification in relation to petroleum revenue tax and supplementary petroleum duty.

C214 See Finance Act 1981 (c. 35), s. 134, Sch.17 para.18—application of this provision to the special tax on banking deposits.

113 Form of returns and other documents. U.K.

(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.

[F448 (1A) 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.

(1B) 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.]

F449 [(1C) 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.]

F450 [(1D) 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.

(3) Every assessment, F451 [determination of a penalty,] duplicate, warrant, notice of assessment F451 [, of determination] or of demand, or other document required to be used in assessing, charging, collecting and levying tax F451 [or 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 .

Textual Amendments

F448 Finance Act 1970 (c. 24), s.18, Sch. 4, para. 10.

F449 Finance Act 1989 (c. 26), s. 160(4).

F450 Finance Act 1989 (c. 26), s. 168(7)(a).

F451 Finance Act 1989 (c. 26), s. 168(7)(b).

Modifications etc. (not altering text)

C215 See Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1) (Oil Taxation Acts) regarding modification in relation to petroleum revenue tax and supplementary petroleum duty

C216 See Finance Act 1981 (c. 35), s. 134, Sch.17 para.18—application of this provision to the special tax on banking deposits.

C217 S. 113(1B)(3) applied (19.4.1991) for the year of assessment 1988-1989 by S.I. 1991/851, regs. 1, 6

S. 113(1B) applied (28.3.1992) for the year of assessment 1989-90 by S.I. 1992/511, reg.6

C218 S. 113(1B) applied (with modifications) (23.3.1993 with effect for the year of assessment 1990-91 only) by S.I. 1993/415, regs. 1(1),6

C219 See—Income and Corporation Taxes Act 1988 (c. 1), Sch. 19 para. 13(7)—ss. 113(1B)(3), 114(2) applied in relation to apportionment of close company's income; S.I. 1990/627, reg. 8—application of ss. 113(1B)(3) to underwriters for 1987-88.

C220 S. 113(1B) applied (with effect 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. 6

114 Want of form or errors not to invalidate assessments, etc. U.K.

(1) An assessment F452 [or 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 F452 [or 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 F452 [or determination].

Textual Amendments

F452 Finance Act 1989 (c. 26), s. 160(5).

Modifications etc. (not altering text)

C221 See Income and Corporation Taxes Act 1988 (c. 1), Sch. 16 para. 13(7)—ss. 114(2)applied in relation to apportionment of close company's income.

C222 S. 114 applied by See Finance Act 1981 (c. 35), s. 134, Sch.17 para.18 (special tax on banking deposits).

115 Delivery and service of documents. [1952 s.515(1); 1965 Sch.X 1(1); 1966 Sch.VI 13.] [1969 Sch.XX 16(1)(2).] U.K.

(1) 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 .

(2) 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

(b) 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 .

(3) 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 .

M12 (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 .

Modifications etc. (not altering text)

C223 See also the Interpretation Act 1978 (c. 30): “References to service by post.7. Where an Act authorises or requires any document to be served by post (whether the expression “serve” or the expression “give” or “send” or any other expression is used) then, unless the contrary intention appears, the service is deemed to be effected by properly addressing, pre-paying and posting a letter containing the document and, unless the contrary is proved, to have been effected at the time at which the letter would be delivered in the ordinary course of post.”

C224 S. 115(1)-(3) applied by Finance Act 1981 (c. 35), s. 134, Sch.17 para.18 (special tax on banking deposits).

C225 See Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1) (Oil Taxation Acts) regarding modification in relation to petroleum revenue tax and supplementary petroleum duty

Marginal Citations

M12 1952 s.515(5); 1965 Sch.X 1(1); 1966 Sch.VI 13.

F453 116 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F453 (Receipts, etc. exempt from stamp duty.)Repealed byFinance Act 1970 s.36(8)andSch.8 Part V,as from1February1971.

Northern Ireland U.K.

117 Action of ejectment in Northern Ireland. U.K.

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.

Modifications etc. (not altering text)

C226 See theNorthern Ireland Constitution Act 1973 (c.36), s.40andSch.5 para.1—includes, from appointed day, a Measure of the Northern Ireland Assembly.

Interpretation U.K.

118 Interpretation. E+W+N.I.

(1) In this Act, unless the context otherwise requires—

• “Act” includes an Act of the Parliament of Northern Ireland 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,

• “chargeable gain” has the same meaning as in F454 [the [F455 1992 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 F456 [sections 419 and 420] of the principal Act (with section F456 [468] of that Act) F457 ... ,

• “incapacitated person” means any infant, person of unsound mind, lunatic, idiot or insane person,

• [F458 “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,

• F459 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “the principal Act” means the Income and Corporation Taxes Act F456 [1988],

• “return” includes any statement or declaration under the Taxes Acts,

• [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 F461 [nor development land tax] is specified, means any of those taxes F462 [except that in sections 20, 20A, 20B, 20C and 20D it does not include development land tax],

• “the Taxes Acts” means this Act and—

  (a)

  the Tax Acts F463 ... and

  (b)

  [F464 the Taxation of Chargeable Gains Act 1992] and all other enactments relating to capital gains tax,

  (c)

  F465 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• [F466 “the 1992 Act ” means the Taxation of Chargeable Gains Act 1992]

• “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 F467 [not 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:

F468 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F469 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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.

Textual Amendments

F454 Capital Gains Tax Act 1979 (c. 14), s.157(2), Sch.7 para.8 for 1979—80 et seq.

F455 Words in s. 118(1) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10, para. 2(11)(a) (with ss. 60, 101(1), 171, 201(3))

F456 Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 32.

F457 Words omitted related to development land tax. Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54), s.98(6), Sch.27 Part X

F458 Definition in s. 118(1) inserted (S.) (25.9.1991) by Age of Legal Capacity (Scotland) Act 1991 (c. 50, SIF 49:8), ss. 10(1), 11(2), Sch. 1 para. 34 (with s. 1(3)

F459 Words in s. 118 repealed by Finance Act 1989 (c. 26), s. 187, Sch. 17 Part VIII (but does not affect the making of assessments for years before 1983-84 or accounting periods ending before 1 April 1983)

F460 Words in s. 118(1) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 34(1); S.I. 1998/3173, art. 2

F461 Development Land Tax Act 1976 s.41, Sch.8 para. 32. Repealed by Finance Act 1985 (c. 54), s.98(6), Sch.27 Part X in respect of disposals taking place on or after 19 March 1985.

F462 Finance Act 1976 s.57(2).

F463 Repealed by Income and Corporation Taxes Act 1988 (c. 1), s. 844, Sch. 31

F464 Words in s. 118(1)(b) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by virtue of Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10, para. 2(11)(b) (with ss. 60, 101(1), 171, 201(3))

F465 A development land tax provision added by Development Land Tax Act 1976 Sch.8 para.32. Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54), s.98(6), Sch.27 Part X.

F466 Definition in s. 118(1)(b) inserted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10, para. 2(11)(c) (with ss. 60, 101(1), 171, 201(3))

F467 Finance (No. 2) Act 1987 s. 94.

F468 Proviso repealed byFinance Act 1970 s.36(8)andSch.8 Part VII.

F469 S. 118(3) repealed (with effect in accordance with s. 199(2)(3), Sch. 19 para. 34(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 34(2), Sch. 26 Pt. 5(23); S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C227 See Finance Act 1981 (c. 35), s. 134, Sch.17 para.18—application of this provision to the special tax on banking deposits.

C228 See theNorthern Ireland Constitution Act 1973 (c.36), s.40andSch.5 para.1—includes, from appointed day, a Measure of the Northern Ireland Assembly.

C229 See Income and Corporation Taxes Act 1988 (c. 1), ss. 606and 612 (administration of retirement benefits schemes)—definition applied.

C230 See Income and Corporation Taxes Act 1988 (c. 1), s. 754(9)—application to s. 754 (controlled foreign companies.).

PART XII U.K. GENERAL

119 Commencement and construction. U.K.

(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) This Act, so far as it relates to chargeable gains, shall be construed as one with F470 [the [F471 1992 Act]].

F472 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F470 Capital Gains Tax Act 1979 (c. 14), s.157(2), Sch.7 para.8 for 1979—80 et seq.

F471 Words in s. 119(4) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10, para. 2(2) (with ss. 60, 101(1), 171, 201(3))

F472 A development land tax provision added by Development Land Tax Act 1976 Sch.8 para.33. Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54), s.98(6), Sch.27 Part X.

120 Short title. U.K.

This Act may be cited as the Taxes Management Act 1970.