C416PART I ADMINISTRATION
C290C3231F862Responsibility for certain taxes
The Commissioners for Her Majesty’s Revenue and Customs shall be responsible for the collection and management of—
a
income tax,
b
corporation tax, and
c
capital gains tax.
2 General Commissioners
1
For the purpose of exercising such powers relating to appeals and other matters as are conferred on them by the Taxes Acts F593or by Part II of the Social Security Contributions (Transfer of Functions, etc.) Act 1999F596or by Part III of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 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 F1or 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 F1or Northern Ireland shall be appointed by, and shall hold office during the pleasure of, the Lord Chancellor.
C2483
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.
F45
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.
C1C2496
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.
F592. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F8696A
The Lord Chancellor must consult the Lord Chief Justice of England and Wales or, in Northern Ireland, the Lord Chief Justice of Northern Ireland before exercising any function conferred on him by subsection (1) or (6).
6B
The Lord Chief Justice of England and Wales may nominate a judicial office holder (as defined in section 109(4) of the Constitutional Reform Act 2005) to exercise his functions under this section.
6C
The Lord Chief Justice of Northern Ireland may nominate one of the following to exercise his functions under this section—
a
the holder of one of the offices listed in Schedule 1 to the Justice (Northern Ireland) Act 2002;
b
a Lord Justice of Appeal (as defined in section 88 of that 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.
F7259
No action shall lie against a General Commissioner in respect of any act or omission of his—
a
in the execution of his duty; and
b
with respect to any matter within his jurisdiction.
10
No action shall lie against a General Commissioner in respect of any act or omission of his—
a
in the purported execution of his duty; but
b
with respect to any matter not within his jurisdiction,
unless it is proved that he acted in bad faith.
C4042AF726General Commissioners: costs and expenses in legal proceedings.
1
A court may not order a General Commissioner to pay costs or (in Scotland) expenses in any proceedings in respect of any act or omission of his in the execution (or purported execution) of his duty as a General Commissioner.
2
Subsection (1) above does not apply in relation to—
a
any proceedings in which a General Commissioner is being tried for an offence or is appealing against a conviction; or
b
any proceedings in which it is proved that a General Commissioner acted in bad faith in respect of the matters giving rise to the proceedings.
C3743
Where a court is prevented by subsection (1) above from ordering a General Commissioner to pay costs or expenses in any proceedings, the court may instead order the making by the relevant Minister of a payment in respect of the costs or expenses of a person in the proceedings.
4
The relevant Minister may by regulations made by statutory instrument make provision specifying—
a
circumstances when a court shall or shall not exercise the power conferred on it by subsection (3) above; and
b
how the amount of any payment ordered under that subsection is to be determined.
5
No regulations may be made under subsection (4) above unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, each House of Parliament.
6
In this section “relevant Minister” means the Lord Chancellor or, in Scotland, the Secretary of State.
3 Clerk to General Commissioners.
1
The General Commissioners for every division shall appoint a clerk and, if they think it necessary, an assistant clerk, and persons appointed under this subsection shall hold office during the pleasure of the Commissioners and act under their direction.
F52
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
F6The 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 [F7allowance] or gratuity, or make such provision for the payment of pension [F7allowance] or gratuity to or in respect of any full-time clerk, as F8he may, with the approval of the Treasury, determine.
In this subsection “full-time clerk” means a clerk as regards whom F8the 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 C2.
C2504
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.
C4053AF727General Commissioners and clerks: indemnity.
1
A General Commissioner or a clerk may be indemnified by the relevant Minister in respect of—
a
any costs or (in Scotland) expenses which the General Commissioner or clerk reasonably incurs in or in connection with proceedings in respect of anything done or omitted in the exercise (or purported exercise) of his duty as a General Commissioner or clerk;
b
any costs or expenses which he reasonably incurs in taking steps to dispute any claim which might be made in such proceedings;
c
any damages awarded against him or costs or expenses ordered to be paid by him in any such proceedings; and
d
any sums payable by him in connection with a reasonable settlement of any such proceedings or claim,
unless it is proved, in respect of matters giving rise to the proceedings or claim in question, that he acted in bad faith.
2
A General Commissioner or a clerk shall be indemnified by the relevant Minister in respect of any such costs or expenses, damages or sums as are mentioned in subsection (1)(a) to (d) above if, in respect of the matters giving rise to the proceedings or claim in question, he acted reasonably and in good faith.
3
Any question whether, or to what extent, a person is to be indemnified under this section shall be determined by the relevant Minister.
4
A determination under subsection (3) above with respect to any such costs or expenses or sums as are mentioned in subsection (1)(a), (b) or (d) above may, if the person claiming to be indemnified so requests, be made in advance before they are incurred or the settlement made.
5
Any such determination in advance for indemnity in respect of costs or expenses to be incurred—
a
shall be subject to such limitations, if any, as the relevant Minister thinks proper and to the subsequent determination of the amount of the costs or expenses reasonably incurred; and
b
shall not affect any other determination which may fall to be made in connection with the proceedings or claim in question.
6
In this section “clerk” means—
a
any person appointed to be a clerk or assistant clerk to the General Commissioners for any division; or
b
a person who assists any such person;
and “relevant Minister” means the Lord Chancellor or, in Scotland, the Secretary of State.
C3C239C2444F10Special Commissioners.
C2511
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—
b
he is an advocate or solicitor in Scotland of at least F9927 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 F9937 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.
F8703A
The Lord Chancellor may designate a person under subsection (3) only with the concurrence of all of the following—
a
the Lord Chief Justice of England and Wales;
b
the Lord President of the Court of Session;
c
the Lord Chief Justice of Northern Ireland.
F3563A
A Special Commissioner—
a
may resign his office at any time; and
b
shall vacate his office on the day on which he attains the age of seventy years;
but paragraph (b) above is subject to section 26(4) to (6) of the Judicial Pensions and Retirement Act 1993 (power to authorise continuance in office up to the age of 75).
C2524
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.
F8714A
The Lord Chancellor may remove a Special Commissioner from office under subsection (4) only with the concurrence of the appropriate senior judge.
4B
The appropriate senior judge is the Lord Chief Justice of England and Wales, unless—
a
the Special Commissioner exercises functions wholly or mainly in Scotland, in which case it is the Lord President of the Court of Session, or
b
the Special Commissioner exercises functions wholly or mainly in Northern Ireland, in which case it is the Lord Chief Justice of Northern Ireland.
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.
F3576A
Subsection (6) above, so far as relating to pensions (including allowances and gratuities), shall not have effect in relation to a person to whom Part I of the Judicial Pensions and Retirement Act 1993 applies, except to the extent provided by or under that Act.
7
Officers and staff may be appointed under F814section 2(1) of the Courts Act 2003 (court staff) for carrying out the administrative work of the Special Commissioners.
F8728
The Lord Chief Justice of England and Wales may nominate a judicial office holder (as defined in section 109(4) of the Constitutional Reform Act 2005) to exercise his functions under subsection (3A).
9
The Lord President of the Court of Session may nominate a judge of the Court of Session who is a member of the First or Second Division of the Inner House of that Court to exercise his functions under subsection (3A).
10
The Lord Chief Justice of Northern Ireland may nominate any of the following to exercise his functions under subsection (3A)—
a
the holder of one of the offices listed in Schedule 1 to the Justice (Northern Ireland) Act 2002;
b
a Lord Justice of Appeal (as defined in section 88 of that Act).
C240C2454AF10Deputy Special Commissioners.
C2531
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 F358(and, accordingly, no appointment of a person as a deputy Special Commissioner shall be such as to extend beyond the day on which he attains the age of seventy years, but subject to section 26(4) to (6) of the Judicial Pensions and Retirement Act 1993).
3
A deputy Special Commissioner while acting under this section shall have all the jurisdiction and functions of a Special Commissioner and any reference to a Special Commissioner in the following provisions of this Act or in any other enactment or any instrument made under any enactment (whenever passed or made) shall include a reference to a deputy Special Commissioner.
4
The duty under section 6(1) below shall only apply to a deputy Special Commissioner on his first appointment to that office.
F3595
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
The Lord Chancellor may pay to any person appointed under this section such remuneration and allowances as he may, with the approval of the Treasury, determine.
5 General and Special Commissioners.
1
No General Commissioner or Special Commissioner shall act as such in relation to any matter in which he has a personal interest, or is interested on behalf of another person, except with the express consent of the parties to the proceedings.
F112
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C219C387C394C4146 Declarations on taking office.
1
Every person who is appointed to be—
a
a General Commissioner or a Special Commissioner, or
F12b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
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.
F8633
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F8634
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
A declaration under this section shall be made as soon as may be after first appointment to the office in question.
PART II RETURNS OF INCOME AND GAINS
Income tax
C145C445C4517F272Notice of liability to income tax and capital gains tax.
1
Every person who—
a
is chargeable to income tax or capital gains tax for any year of assessment, and
b
has not received a notice under section 8 of this Act requiring a return for that year of his total income and chargeable gains,
shall, subject to subsection (3) below, within six months from the end of that year, give notice to an officer of the Board that he is so chargeable.
2
3
A person shall not be required to give notice under subsection (1) above in respect of a year of assessment if for that year his total income consists of income from sources falling within subsections (4) to (7) below and he has no chargeable gains.
4
A source of income falls within this subsection in relation to a year of assessment if—
a
all payments of, or on account of, income from it during that year, and
b
all income from it for that year which does not consist of payments,
have or has been taken into account in the making of deductions or repayments of tax under F731PAYE regulations.
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 F731PAYE regulations.
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 F816Chapter 3 of Part 4 of ITTOIA 2005 (dividends etc. from UK resident companies etc.),
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 F363income on which he could not become liable to tax under a self-assessment made under section 9 of this Act in respect of that year.
8
If any person, for any year of assessment, fails to comply with subsection (1) above, he shall be liable to a penalty not exceeding the amount of the tax—
a
in which he is assessed under section 9 or 29 of this Act in respect of that year, and
b
which is not paid on or before the 31st January next following that year.
F3629
For the purposes of this Act the relevant trustees of a settlement are—
a
F507aa
in relation to gains treated as arising under F819Chapter 9 of Part 4 of ITTOIA 2005, the persons who are trustees in the year of assessment in which the gains arise and any persons who subsequently become trustees; and
b
in relation to chargeable gains, the persons who are trustees in the year of assessment in which the chargeable gains accrue and any persons who subsequently become trustees.
C4C5C198C302C354C355C446C4528F14Personal return.
F2731
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, F414and the amount payable by him by way of income tax for that year, he may be required by a notice given to him by an officer of the Board—
a
to make and deliver to the officer F953..., 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.
F9541A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4151AA
For the purposes of subsection (1) above—
a
the amounts in which a person is chargeable to income tax and capital gains tax are net amounts, that is to say, amounts which take into account any relief or allowance a claim for which is included in the return; and
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, F364loss, tax, credit or charge for the period in respect of which the statement is made.
1C
In subsection (1B) above “relevant statement” means a statement which, as respects the partnership, falls to be made under section 12AB of this Act for a period which includes, or includes any part of, the year of assessment or its basis period.
F9551D
A return under this section for a year of assessment (Year 1) must be delivered—
a
in the case of a non-electronic return, on or before 31st October in Year 2, and
b
in the case of an electronic return, on or before 31st January in Year 2.
1E
But subsection (1D) is subject to the following two exceptions.
1F
Exception 1 is that if a notice in respect of Year 1 is given after 31st July in Year 2 (but on or before 31st October), a return must be delivered—
a
during the period of 3 months beginning with the date of the notice (for a non-electronic return), or
b
on or before 31st January (for an electronic return).
1G
Exception 2 is that if a notice in respect of Year 1 is given after 31st October in Year 2, a return (whether electronic or not) must be delivered during the period of 3 months beginning with the date of the notice.
1H
The Commissioners—
a
shall prescribe what constitutes an electronic return, and
b
may make different provision for different cases or circumstances.
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.
F3655
In this section and sections 8A, 9 and 12AA of this Act, any reference to income tax deducted at source is a reference to income tax deducted or treated as deducted from any income or treated as paid on any income.
C447C4538AF14 Trustee’s return.
F2741
For the purpose of establishing the amounts in which F366the relevant trustees of a settlement, and the settlors and beneficiaries, are chargeable to income tax and capital gains tax for a year of assessment, F416and the amount payable by him by way of income tax for that year, an officer of the Board may by a notice given to F367any relevant trustee require the trustee—
a
to make and deliver to the officer F956... , 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.
F9571A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4171AA
For the purposes of subsection (1) above—
a
the amounts in which a person is chargeable to income tax and capital gains tax are net amounts, that is to say, amounts which take into account any relief or allowance a claim for which is included in the return; and
F9581B
A return under this section for a year of assessment (Year 1) must be delivered—
a
in the case of a non-electronic return, on or before 31st October in Year 2, and
b
in the case of an electronic return, on or before 31st January in Year 2.
1C
But subsection (1B) is subject to the following two exceptions.
1D
Exception 1 is that if a notice in respect of Year 1 is given after 31st July in Year 2 (but on or before 31st October), a return must be delivered—
a
during the period of 3 months beginning with the date of the notice (for a non-electronic return), or
b
on or before 31st January (for an electronic return).
1E
Exception 2 is that if a notice in respect of Year 1 is given after 31st October in Year 2, a return (whether electronic or not) must be delivered during the period of 3 months beginning with the date of the notice.
1F
The Commissioners—
a
shall prescribe what constitutes an electronic return, and
b
may make different provision for different cases or circumstances.
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.
F3685
The following references, namely—
a
references in section 9 or 28C of this Act to a person to whom a notice has been given under this section being chargeable to tax; and
b
references in section 29 of this Act to such a person being assessed to tax,
shall be construed as references to the relevant trustees of the settlement being so chargeable or, as the case may be, being so assessed.
C356C448C4549F275 Returns to include self-assessment.
F4181
Subject to F508subsections (1A) and (2) below, every return under section 8 or 8A of this Act shall include a self-assessment, that is to say—
a
an assessment of the amounts in which, on the basis of the information contained in the return and taking into account any relief or allowance a claim for which is included in the return, the person making the return is chargeable to income tax and capital gains tax for the year of assessment; and
b
an assessment of the amount payable by him by way of income tax, that is to say, the difference between the amount in which he is assessed to income tax under paragraph (a) above and the aggregate amount of any income tax deducted at source and any tax credits to which F821section 397(1) F997or 397A(2) of ITTOIA 2005 applies
C486F5091A
The tax to be assessed on a person by a self-assessment shall not include any tax F873which—
a
is chargeable on the scheme administrator of a registered pension scheme under Part 4 of the Finance Act 2004,
ab
is chargeable on the sub-scheme administrator of a sub-scheme under Part 4 of the Finance Act 2004 as modified by the Registered Pensions (Splitting of Schemes) Regulations 2006, or
b
is chargeable on the person who is (or persons who are) the responsible person in relation to an employer-financed retirement benefits scheme under section 394(2) of ITEPA 2003.
C303C3332
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 F95931st October next following the year, or
b
where the notice under section 8 or 8A of this Act is given after the F96031st August next following the year, within the period of two months beginning with the day on which the notice is given.
C303C3333
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;
F636. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6373A
An assessment under subsection (3) above is treated for the purposes of this Act as a self-assessment and as included in the return.
F6384
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F6385
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F6386
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C5369ZAF639Amendment of personal or trustee return by taxpayer
1
A person may amend his return under section 8 or 8A of this Act by notice to an officer of the Board.
2
An amendment may not be made more than twelve months after the filing date.
F9623
In this section “the filing date”, in respect of a return for a year of assessment (Year 1), means—
a
31st January of Year 2, or
b
if the notice under section 8 or 8A is given after 31st October of Year 2, the last day of the period of three months beginning with the date of the notice.
9ZB Correction of personal or trustee return by Revenue
1
An officer of the Board may amend a return under section 8 or 8A of this Act so as to correct obvious errors or omissions in the return (whether errors of principle, arithmetical mistakes or otherwise).
2
A correction under this section is made by notice to the person whose return it is.
3
No such correction may be made more than nine months after—
a
the day on which the return was delivered, or
b
if the correction is required in consequence of an amendment of the return under section 9ZA of this Act, the day on which that amendment was made.
4
A correction under this section is of no effect if the person whose return it is gives notice rejecting the correction.
5
Notice of rejection under subsection (4) above must be given—
a
to the officer of the Board by whom the notice of correction was given,
b
before the end of the period of 30 days beginning with the date of issue of the notice of correction.
C304C334C357F6469A Notice of enquiry
1
An officer of the Board may enquire into a return under section 8 or 8A of this Act if he gives notice of his intention to do so (“notice of enquiry”)—
a
to the person whose return it is (“the taxpayer”),
b
within the time allowed.
2
The time allowed is—
a
if the return was delivered on or before the filing date, up to the end of the period of twelve months F967after the day on which the return was delivered;
b
if the return was delivered after the filing date, up to and including the quarter day next following the first anniversary of the day on which the return was delivered;
c
if the return is amended under section 9ZA of this Act, up to and including the quarter day next following the first anniversary of the day on which the amendment was made.
For this purpose the quarter days are 31st January, 30th April, 31st July and 31st October.
3
A return which has been the subject of one notice of enquiry may not be the subject of another, except one given in consequence of an amendment (or another amendment) of the return under section 9ZA of this Act.
F7934
An enquiry extends to—
a
anything contained in the return, or required to be contained in the return, including any claim or election included in the return,
b
consideration of whether to give the taxpayer a transfer pricing notice under paragraph 5C of Schedule 28AA to the principal Act (provision not at arm’s length: medium-sized enterprise),
F858c
consideration of whether to give the taxpayer a notice under section 804ZA of the principal Act (schemes and arrangements designed to increase relief),
but this is subject to the following limitation.
5
If the notice of enquiry is given as a result of an amendment of the return under section 9ZA of this Act—
a
at a time when it is no longer possible to give notice of enquiry under subsection (2)(a) or (b) above, or
b
after an enquiry into the return has been completed,
the enquiry into the return is limited to matters to which the amendment relates or which are affected by the amendment.
6
In this section “the filing date” F961means, in relation to a return, the last day for delivering it in accordance with section 8 or 8A.
9BF646Amendment of return by taxpayer during enquiry
1
This section applies if a return is amended under section 9ZA of this Act (amendment of personal or trustee return by taxpayer) at a time when an enquiry is in progress into the return.
2
The amendment does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry.
3
So far as the amendment affects the amount stated in the self-assessment included in the return as the amount of tax payable, it does not take effect while the enquiry is in progress and—
a
if the officer states in the closure notice that he has taken the amendment into account and that—
i
the amendment has been taken into account in formulating the amendments contained in the notice, or
ii
his conclusion is that the amendment is incorrect,
the amendment shall not take effect;
b
otherwise, the amendment takes effect when the closure notice is issued.
4
For the purposes of this section the period during which an enquiry is in progress is the whole of the period—
a
beginning with the day on which notice of enquiry is given, and
b
ending with the day on which the enquiry is completed.
9CF646Amendment of self-assessment during enquiry to prevent loss of tax
1
This section applies where an enquiry is in progress into a return as a result of notice of enquiry by an officer of the Board under section 9A(1) of this Act.
2
If the officer forms the opinion—
a
that the amount stated in the self-assessment contained in the return as the amount of tax payable is insufficient, and
b
that unless the assessment is immediately amended there is likely to be a loss of tax to the Crown,
he may by notice to the taxpayer amend the assessment to make good the deficiency.
3
In the case of an enquiry which under section 9A(5) of this Act is limited to matters arising from an amendment of the return, subsection (2) above only applies so far as the deficiency is attributable to the amendment.
4
For the purposes of this section the period during which an enquiry is in progress is the whole of the period—
a
beginning with the day on which notice of enquiry is given, and
b
ending with the day on which the enquiry is completed.
F8249DF646Choice between different Cases of Schedule D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporation tax
F51110Notice of liability to corporation tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F51111 Return of profits.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F36911A Notice of liability to capital gains tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F51211AA Return of profits to include self-assessment.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F51211AB Power to enquire into return of profits.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F51211AC Modifications of sections 11AA and 11AB in relation to non-annual accounting of general insurance business.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F51211AD Modifications of sections 11AA and 11AB for insurance companies with non-annual actuarial investigations.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F51211AE Modifications of sections 11AA and 11AB for friendly societies with non-annual actuarial investigations.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12 Information about chargeable gains.
F2761
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
A notice under section 8 F15or section 8AF510... 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—
F20a
any assets exempted by the following provisions of the F161992 Act, namely—
i
section F1751(1) (rights to winnings from pool betting, lotteries or games with prizes),
ii
section F18121 (government non-marketable securities),
iii
section F19263, 268 or 269 (passenger vehicles, decorations for valour or gallant conduct and foreign currency for personal expenditure)], or
b
c
any assets acquired as trading stock.
3
The particulars required under this section may include particulars of the person from whom the asset was acquired, and of the consideration for the acquisition.
F2774
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
F278Partnerships
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
C19912AA Partnership return.
F3701
Where a trade, profession or business is carried on by two or more persons in partnership, for the purpose of facilitating the establishment of the following amounts, namely—
a
the amount in which each partner chargeable to income tax for any year of assessment is so chargeable F424and the amount payable by way of income tax by each such partner, and
b
the amount in which each partner chargeable to corporation tax for any period is so chargeable,
an officer of the Board may act under subsection (2) or (3) below (or both).
F4251A
For the purposes of subsection (1) above—
a
the amount in which a partner is chargeable to income tax or corporation tax is a net amount, that is to say, an amount which takes into account any relief or allowance for which a claim is made; and
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 F420or a successor of his—
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 F371such accounts, statements and documents, relating to information contained in the return, as may reasonably be so required.
3
An officer of the Board may by notice given to any partner require the partner F423or a successor of his—
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.
F9634
In the case of a partnership which includes one or more individuals, a notice under subsection (2) or (3) above may specify different days depending on whether a return in respect of a year of assessment (Year 1) is electronic or non-electronic.
4A
The day specified for a non-electronic return must not be earlier than 31st October of Year 2.
4B
The day specified for an electronic return must not be earlier than 31st January of Year 2.
4C
But subsections (4A) and (4B) are subject to the following two exceptions.
4D
Exception 1 is that if the notice is given after 31st July in Year 2 (but on or before 31st October)—
a
the day specified for a non-electronic return must be after the end of the period of three months beginning with the date of the notice, and
b
the day specified for an electronic return must not be earlier than 31st January.
4E
Exception 2 is that if the notice is given after 31st October in Year 2, the day specified for a return (whether or not electronic) must be after the end of the period of three months beginning with the date of the notice.
F9645
In the case of a partnership which includes one or more companies, a notice may specify different dates depending on whether a notice in respect of a relevant period is electronic or non-electronic.
5A
The day specified for a non-electronic return must not be earlier than the end of the period of nine months beginning at the end of the relevant period.
5B
The day specified for an electronic return must not be earlier than the first anniversary of the end of the relevant period.
5C
But where the notice is given more than nine months after the end of the relevant period, the day specified for a return (whether or not electronic) must be after the end of the period of three months beginning with the date of the notice.
5D
For the purposes of this section “relevant period” means the period in respect of which the return is required.
5E
The Commissioners—
a
shall prescribe what constitutes an electronic return for the purposes of this section, and
b
may make different provision for different cases or circumstances.
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 F421... 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 F513or paragraph 13 of Schedule 18 to the Finance Act 1998.
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.
F64010A
In this Act a “partnership return” means a return in pursuance of a notice under subsection (2) or (3) above.
F42211
In this Act “successor”, in relation to a person who is required to make and deliver, or has made and delivered, F641a partnership return, but is no longer available, means—
a
where a partner is for the time being nominated for the purposes of this subsection by a majority of the relevant partners, that partner; and
b
where no partner is for the time being so nominated, such partner as—
i
in the case of a notice under subsection (2) above, is identified in accordance with rules given with that notice; or
ii
in the case of a notice under subsection (3) above, is nominated for the purposes of this subsection by an officer of the Board;
and “predecessor” and “successor”, in relation to a person so nominated or identified, shall be construed accordingly.
12
For the purposes of subsection (11) above a nomination under paragraph (a) of that subsection, and a revocation of such a nomination, shall not have effect in relation to any time before notice of the nomination or revocation is given to an officer of the Board.
13
In this section “relevant partner” means a person who was a partner at any time during the period for which the return was made or is required, or the personal representatives of such a person.
12ABF280Partnership return to include partnership statement.
F3721
Every F642partnership return shall include a statement (a partnership statement) of the following amounts, namely—
a
in the case of F426the period in respect of which the return is made and each period of account ending within that period—
i
the amount of income or loss from each source which, on the basis of the information contained in the return and taking into account any relief or allowance a section 42(7) claim for which is included in the return, has accrued to or has been sustained by the partnership for F427the period in question,
F428ia
the amount of the consideration which, on that basis, has accrued to the partnership in respect of each disposal of partnership property during that period,
ii
each amount of income tax which, on that basis, has been deducted or treated as deducted from any income of the partnership, or treated as paid on any such income, for that period, F882and
iii
the amount of each tax credit which, on that basis, has accrued to the partnership for that period, F883...
F883iv
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6432
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6433
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6434
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
In this section—
F644. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F718. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F373“section 42(7) claim” means a claim under any of the provisions mentioned in section 42(7) of this Act;
F373“tax credit” means a tax credit to which section 231 of the principal Act applies F826in the case of corporation tax and section 397(1) F999or 397A(2) of ITTOIA 2005 applies in the case of income tax.
12ABZAAF1021Returns relating to LLP not carrying on business etc with view to profit
1
This section applies where—
a
a person delivers a purported partnership return (“the relevant return”) in respect of a period (“the relevant period”),
b
the relevant return—
i
is made on the basis that the activities of a limited liability partnership (“the LLP”) are treated, under section 863 of ITTOIA 2005 or section 1273 of CTA 2009, as carried on in partnership by its members (“the purported partnership”), and
ii
relates to the purported partnership, but
c
the LLP does not carry on a business with a view to profit in the relevant period (and, accordingly, its activities are not treated as mentioned in paragraph (b)(i)).
2
For the purposes of the relevant enactments, treat the relevant return as a partnership return (and, accordingly, anything done under a relevant enactment in connection with the relevant return has the same effect as it would have if done in connection with a partnership return in a corresponding partnership case).
3
“Relevant enactment” means—
a
any of the following—
i
sections 12AC and 28B (enquiries into partnership returns),
ii
Part 4 of FA 2014 (follower notices and accelerated payment notices), and
b
any enactment relating to, or applying for the purposes of, an enactment within paragraph (a).
4
In relation to the relevant return, the relevant enactments apply with the necessary modifications, including in particular the following—
a
“partner” includes purported partner, and
b
“partnership” includes the purported partnership.
5
In this section—
“business” includes trade or profession;
“corresponding partnership case” means a corresponding case in which the limited liability partnership in question carries on a business with a view to profit in the relevant period;
“purported partner” means any person who was a member of the LLP in the relevant period;
“purported partnership return” means anything that—
- a
purports to be a partnership return, and
- b
is in a form, and is delivered in a way, that a partnership return could have been made and delivered in a corresponding partnership case.
- a
C53712ABAF645Amendment of partnership return by taxpayer
1
A partnership return may be amended by the partner who made and delivered the return, or his successor, by notice to an officer of the Board.
2
An amendment may not be made more than twelve months after the filing date.
3
Where a partnership return is amended under this section, the officer shall by notice to each of the partners amend—
a
the partner’s return under section 8 or 8A of this Act, or
b
the partner’s company tax return,
so as to give effect to the amendment of the partnership return.
F9654
In this section “the filing date” means—
a
in the case of a partnership which includes one or more individuals, in respect of a return for a year of assessment (Year 1)—
i
31st January of Year 2, or
ii
if the notice under section 12AA is given after 31st October of Year 2, the last day of the period of three months beginning with the date of the notice, and
b
in the case of a partnership which includes one or more companies, the end of the period specified in section 12AA(5B) or (5C).
12ABB Correction of partnership return by Revenue
1
An officer of the Board may amend a partnership return so as to correct obvious errors or omissions in the return (whether errors of principle, arithmetical mistakes or otherwise).
2
A correction under this section is made by notice to the partner who made and delivered the return, or his successor.
3
No such correction may be made more than nine months after—
a
the day on which the return was delivered, or
b
if the correction is required in consequence of an amendment of the return under section 12ABA of this Act, the day on which that amendment was made.
4
A correction under this section is of no effect if the person to whom the notice of correction was given, or his successor, gives notice rejecting the correction.
5
Notice of rejection under subsection (4) above must be given—
a
to the officer of the Board by whom the notice of correction was given,
b
before the end of the period of 30 days beginning with the date of issue of the notice of correction.
6
Where a partnership return is corrected under this section, the officer shall by notice to each of the partners amend—
a
the partner’s return under section 8 or 8A of this Act, or
b
the partner’s company tax return,
so as to give effect to the correction of the partnership return.
Any such amendment shall cease to have effect if the correction is rejected.
12ACF647 Notice of enquiry
1
An officer of the Board may enquire into a partnership return if he gives notice of his intention to do so (“notice of enquiry”)—
a
to the partner who made and delivered the return, or his successor,
b
within the time allowed.
2
The time allowed is—
a
if the return was delivered on or before the filing date, up to the end of the period of twelve months F966after the day on which the return was delivered;
b
if the return was delivered after the filing date, up to and including the quarter day next following the first anniversary of the day on which the return was delivered;
c
if the return is amended under section 12ABA of this Act, up to and including the quarter day next following the first anniversary of the day on which the amendment was made.
For this purpose the quarter days are 31st January, 30th April, 31st July and 31st October.
3
A return which has been the subject of one notice of enquiry may not be the subject of another, except one given in consequence of an amendment (or another amendment) of the return under section 12ABA of this Act.
4
An enquiry extends to anything contained in the return, or required to be contained in the return, including any claim or election included in the return, subject to the following limitation.
5
If the notice of enquiry is given as a result of an amendment of the return under section 12ABA of this Act—
a
at a time when it is no longer possible to give notice of enquiry under subsection (2)(a) or (b) above, or
b
after an enquiry into the return has been completed,
the enquiry into the return is limited to matters to which the amendment relates or which are affected by the amendment.
6
The giving of notice of enquiry under subsection (1) above at any time shall be deemed to include the giving of notice of enquiry—
a
under section 9A(1) of this Act to each partner who at that time has made a return under section 8 or 8A of this Act or at any subsequent time makes such a return, or
b
under paragraph 24 of Schedule 18 to the Finance Act 1998 to each partner who at that time has made a company tax return or at any subsequent time makes such a return.
7
In this section “the filing date” means the day specified in the notice under section 12AA(2) of this Act or, as the case may be, subsection (3) of that section.
12ADF647Amendment of partnership return by taxpayer during enquiry
1
This section applies if a partnership return is amended under section 12ABA of this Act (amendment of partnership return by taxpayer) at a time when an enquiry is in progress into the return.
2
The amendment does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry.
3
So far as the amendment affects any amount stated in the partnership statement included in the return, it does not take effect while the enquiry is in progress and—
a
if the officer states in the closure notice that he has taken the amendment into account and that—
i
the amendment has been taken into account in formulating the amendments contained in the notice, or
ii
his conclusion is that the amendment is incorrect,
the amendment shall not take effect;
b
otherwise, the amendment takes effect when the closure notice is issued.
4
Where the effect of an amendment is deferred under subsection (3) above—
a
no amendment to give effect to that amendment (“the deferred amendment”) shall be made under section 12ABA(3) of this Act (consequential amendment of partners’ returns) while the enquiry is in progress;
b
if the deferred amendment does not take effect but is taken into account as mentioned in subsection (3)(a)(i) above, section 28B(4) of this Act (amendment of partners’ returns consequential on amendment of partnership return by closure notice) applies accordingly; and
c
if the deferred amendment takes effect under subsection (3)(b) above, any necessary amendment under section 12ABA(3) of this Act may then be made.
5
For the purposes of this section the period during which an enquiry is in progress is the whole of the period—
a
beginning with the day on which notice of enquiry is given, and
b
ending with the day on which the enquiry is completed.
12AEF647Choice between different Cases of Schedule D
1
Where in the case of a partnership return—
a
alternative methods are allowed by the Tax Acts for bringing amounts into charge to tax,
b
the return is made using one of those methods but could have been made using an alternative method, and
c
an officer of the Board determines which of the alternative methods is to be used,
the officer’s determination is final and conclusive, for the purposes of any enquiry into the return, as to the basis of charge to be used.
2
For the purposes of this section the cases where the Tax Acts allow alternative methods for bringing amounts into charge to tax are those specified—
F827a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
for corporation tax purposes, in paragraph F100084(1) of Schedule 18 to the Finance Act 1998.
F24European Economic Interest Groupings
S. 12A and cross-heading inserted (1.7.1989) by Finance Act 1990 (c. 29), s. 69, Sch. 11 paras. 2, 5
12A European Economic Interest Groupings.
1
In this section “grouping” means a European Economic Interest Grouping formed in pursuance of Council Regulation (EEC) No. 2137/85 of 25th July 1985 (“the Council Regulation”), whether registered in Great Britain, in Northern Ireland, or elsewhere.
2
For the purposes of F279securing 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.
F323Records
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
C305C33512B Records to be kept for purposes of returns.
1
Any person who may be required by a notice under section 8, 8A F514... 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
F374b
preserve those records until the end of the relevant day, that is to say, the day mentioned in subsection (2) below or, where a return is required by a notice given on or before that day, whichever of that day and the following is the latest, namely—
i
ii
where no enquiries into the return F651... are so made, the day on which such an officer no longer has power to make such enquiries.
2
The day referred to in subsection (1) above is—
a
in the case of a person carrying on a trade, profession or business alone or in partnership or a company, the fifth anniversary of the 31st January next following the year of assessment or (as the case may be) the sixth anniversary of the end of the period;
b
in any other case, the first anniversary of the 31st January next following the year of assessment F375...
F3762A
Any person who—
a
is required, by such a notice as is mentioned in subsection (1) above given at any time after the end of the day mentioned in subsection (2) above, to make and deliver a return for a year of assessment or other period; and
b
has in his possession at that time any records which may be requisite for the purpose of enabling him to make and deliver a correct and complete return for the year or period,
shall preserve those records until the end of the relevant day, that is to say, the day which, if the notice had been given on or before the day mentioned in subsection (2) above, would have been the relevant day for the purposes of subsection (1) above.
3
In the case of a person carrying on a trade, profession or business alone or in partnership—
a
the records required to be kept and preserved under subsection (1) F377or (2A) above shall include records of the following, namely—
i
all amounts received and expended in the course of the trade, profession or business and the matters in respect of which the receipts and expenditure take place, and
ii
in the case of a trade involving dealing in goods, all sales and purchases of goods made in the course of the trade; and
b
the duty under that subsection shall include a duty to preserve until F378the end of the relevant day all supporting documents relating to such items as are mentioned in paragraph (a)(i) or (ii) above.
4
F431Except in the case of records falling within subsection (4A) below, the duty under subsection (1) F379or (2A) above to preserve records may be discharged by the preservation of the information contained in them; and where information is so preserved a copy of any document forming part of the records shall be admissible in evidence in any proceedings before the Commissioners to the same extent as the records themselves.
F4324A
The records which fall within this subsection are—
a
any statement in writing such as is mentioned in—
i
subsection (1) of section 234 of the principal Act (amount of qualifying distribution and tax credit), or
F885ii
section 495(1) or 975(2) or (4) of ITA 2007 (statements about deduction of income tax),
which is furnished by the company or person there mentioned, whether after the making of a request or otherwise;
F794b
any record (however described) which is required by regulations under section 70(1)(c) of the Finance Act 2004 to be given to a sub-contractor (within the meaning of section 58 of that Act) on the making of a payment to which section 61 of that Act (deductions on account of tax) applies;
c
any such record as may be requisite for making a correct and complete claim in respect of, or otherwise requisite for making a correct and complete return so far as relating to, an amount of tax—
i
which has been paid under the laws of a territory outside the United Kingdom, or
ii
which would have been payable under the law of such a territory but for a relief to which section 788(5) of the principal Act (relief for promoting development and relief contemplated by double taxation arrangements) applies.
C4435
F3825A
Subsection (5) above does not apply where the records which the person fails to keep or preserve are records which might have been requisite only for the purposes of claims, elections or notices which are not included in the return.
F4345B
Subsection (5) above also does not apply where—
a
the records which the person fails to keep or preserve are records falling within paragraph (a) of subsection (4A) above; and
b
an officer of the Board is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.
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.
F1019Voluntary returns
S. 12D and cross-heading inserted (retrospective) by Finance Act 2019 (c. 1), s. 87(1)(3) (with s. 87(4))
C54512DReturns made otherwise than pursuant to a notice
1
This section applies where—
a
a person delivers a purported return (“the relevant return”) under section 8, 8A or 12AA (“the relevant section”) for a year of assessment or other period (“the relevant period”),
b
no notice under the relevant section has been given to the person in respect of the relevant period, and
c
HMRC treats the relevant return as a return made and delivered in pursuance of such a notice.
2
For the purposes of the Taxes Acts—
a
treat a relevant notice as having been given to the person on the day the relevant return was delivered, and
b
treat the relevant return as having been made and delivered in pursuance of that notice (and, accordingly, treat it as if it were a return under the relevant section).
3
“Relevant notice” means—
a
in relation to section 8 or 8A, a notice under that section in respect of the relevant period;
b
in relation to section 12AA, a notice under section 12AA(3) requiring the person to deliver a return in respect of the relevant period, on or before the day the relevant return was delivered (or, if later, the earliest day that could be specified under section 12AA).
4
In subsection (1)(a) “purported return” means anything that—
a
is in a form, and is delivered in a way, that a corresponding return could have been made and delivered had a relevant notice been given, and
b
purports to be a return under the relevant section.
5
Nothing in this section affects sections 34 to 36 or any other provisions of the Taxes Acts specifying a period for the making or delivering of any assessment (including self-assessment) to income tax or capital gains tax.
C17C306C349PART III OTHER RETURNS AND INFORMATION
See also—Finance Act 1988 (c. 39), s. 127—production of computer records.
Pt. III applied (E.W.) (1.4.2000) by Education (Student Loans) (Repayment) Regulations 2000 (S.I. 2000/944), regs. 1(1), 19(1)
Pt. III applied (N.I.) (1.4.2000) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2000 (S.R. 2000/121), regs. 1, 19(1)
13 Persons in receipt of taxable income belonging to others.
1
Every person who, in whatever capacity, is in receipt of any money or value, or of any profits or gains from any of the sources mentioned in the Income Tax Acts, of or belonging to another person who is chargeable to income tax in respect thereof, or who would be so chargeable if he were resident in the United Kingdom and not an incapacitated person, shall, whenever required to do so by a notice given to him by an inspector, prepare and deliver, within the time mentioned in the notice, a return F25... , 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, F26... , 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.
F273
A notice under this section shall not require information as to any money, value, profits or gains received in a year of assessment ending more than three years before the date of the giving of the notice.]
14 Return of lodgers and inmates.
Every person, when required to do so by a notice served on him by an inspector, shall, within the time limited by the notice, prepare and deliver to the inspector a return, in writing, containing to the best of his belief—
a
the name of every lodger or inmate resident in his dwelling-house, and
b
the name and ordinary place of residence of any such lodger or inmate who has any ordinary place of residence elsewhere at which he can be assessed and who desires to be assessed at such ordinary place of residence.
F38315F733Return of employees' earnings etc.
1
Every employer, when required to do so by notice from an officer of the Board, shall, within the time limited by the notice, prepare and deliver to the officer a return relating to persons who are or have been employees of his, containing the information required under the following provisions of this section.
2
An employer shall not be required to include in his return information relating to any year of assessment if the notice is given more than five years after the 31st January next following that year.
3
A notice under subsection (1) above—
a
shall specify the employees for whom a return is to be made and may, in particular, specify individuals (by name or otherwise) or all employees of an employer or all his employees who are or have been in F734employment which, for the purposes of the benefits code in ITEPA 2003, is a taxable employment under Part 2 of that Act (see section 66) but is not an excluded employment (see section 63 of that Act); and
b
shall specify the years of assessment or other periods with respect to which the information is to be provided.
4
A notice under subsection (1) above may require the return to state the name and place of residence of an employee to whom it relates.
5
A notice under subsection (1) above may require the return to contain, in respect of an employee to whom it relates, the following particulars—
a
in the case of relevant payments made by the employer, particulars of the payments;
b
in the case of relevant payments not falling within paragraph (a) above the making of which by another person has been arranged by the employer—
i
particulars of the payments; and
ii
the name and business address of the other person; and
c
in the case of relevant payments not falling within either of the preceding paragraphs, the name and business address of any person who has, to the employer’s knowledge, made the payments.
6
Any payments made to an employee in respect of his employment are relevant payments for the purposes of this section, including—
a
payments to him in respect of expenses (including sums put at his disposal and paid away by him);
b
payments made on his behalf and not repaid; and
c
payments to him for services rendered in connection with a trade or business, whether the services were rendered in the course of his employment or not.
7
Where, for the purposes of his return, an employer apportions expenses incurred partly in or in connection with a particular matter and partly in or in connection with other matters—
a
the return shall contain a statement that the sum included in the return is the result of such an apportionment; and
b
if required to do so by notice from an officer of the Board, the employer shall prepare and deliver to the officer, within the time limited by the notice, a return containing full particulars as to the amount apportioned and the manner in which, and the grounds on which, the apportionment has been made.
8
A notice under subsection (1) above may require the return—
a
to state in respect of an employee to whom it relates whether any benefits are or have been provided for him (or for any other person) by reason of his employment, such as may give rise to charges to tax under F735the relevant provisions, that is to say, Chapters 4 to 10 of Part 3 and sections 222 and 223 of ITEPA 2003 (miscellaneous benefits in cash or in kind); and
b
if such benefits are or have been provided, to contain such particulars of those benefits as may be specified in the notice.
9
Where such benefits are provided the notice may, without prejudice to subsection (8)(b) above, require the return to contain the following particulars—
a
in the case of benefits which are or have been provided by the employer, particulars of the amounts which may be chargeable to tax by virtue of F736the relevant provisions;
b
in the case of benefits not falling within paragraph (a) above the provision of which by another person is or has been arranged by the employer—
i
particulars of the amounts which may be so chargeable; and
ii
the name and business address of the other person; and
c
in the case of benefits not falling within either of the preceding paragraphs, the name and business address of any person who has, to the employer’s knowledge, provided the benefits.
10
Where it appears to an officer of the Board that a person has, in any year of assessment, been concerned in making relevant payments to, or providing benefits to or in respect of, employees of another, the officer may at any time up to five years after the 31st January next following that year by notice require that person—
a
to deliver to the officer, within the time limited by the notice, such particulars of those payments or benefits, or of the amounts which may be chargeable to tax in respect of the benefits, as may be specified in the notice (so far as known to him); and
b
to include with those particulars the names and addresses (so far as known to him) of the employees concerned.
11
In determining, in pursuance of a notice under subsection (1) or (10) above, amounts which may be chargeable to tax by virtue of F737the relevant provisions, a person—
a
shall not make—
i
any deduction or other adjustment which he is unable to show, by reference to information in his possession or otherwise available to him, is authorised or required by F737the relevant provisions; or
ii
any deduction authorised by F738section 328(1), 362, 363, 364 or 365 of ITEPA 2003; but
b
subject to that, shall make all such deductions and other adjustments as may be authorised or required by F737the relevant provisions.
12
Where the employer is a body of persons, the secretary of the body or other officer (by whatever name called) performing the duties of secretary shall be treated as the employer for the purposes of this section.
Where the employer is a body corporate, that body corporate, as well as the secretary or other officer, shall be liable to a penalty for failure to comply with this section.
13
In this section—
“arranged” includes guaranteed and in any way facilitated;
“employee” means an office holder or employee F739whose earnings are within the charge to tax under ITEPA 2003, and related expressions are to be construed accordingly;
“relevant payments” has the meaning given by subsection (6) above; and
F740“the relevant provisions” has the meaning given by section (8)(a) above.
16 Fees, commissions, etc.
1
Every person carrying on a trade or business shall, if required to do so by notice from an inspector, make and deliver to the inspector a return of all payments of any kind specified in the notice made during a period so specified, being—
a
payments made in the course of the trade or business, or of such part of the trade or business as may be specified in the notice, for services rendered by persons not employed in the trade or business, or
b
payments for services rendered in connection with the formation, acquisition, development or disposal of the trade or business, or any part of it, by persons not employed in the trade or business, or
c
periodical or lump sum payments made in respect of any copyright [F28public 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 [F28public 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.
F296
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.
F308
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 .]
F74116A Agency workers.
1
This section applies where—
a
any services which an individual provides or is obliged to provide under an agency contract are treated under section 44(2) of ITEPA 2003 as the duties of an office or employment held by him with the agency, or
b
any remuneration receivable under or in consequence of arrangements falling within section 45 of that Act is treated as earnings from an office or employment held by an individual with the agency.
2
Where this section applies—
a
section 15 above shall apply as if the individual were employed by the agency, and
b
section 16 above shall not apply to any payments made to the individual under or in consequence of the agency contract or the arrangements.
3
In this section “agency contract” and “remuneration” have the same meaning as in Chapter 7 of Part 2 of ITEPA 2003.
C8C47217 Interest paid or credited by banksF889, building societies, etc. without deduction of income tax.
1
Every person carrying on a trade or business who, in the ordinary course of the operations thereof, receives or retains money in such circumstances that interest becomes payable thereon which is paid or credited without deduction of income tax F31or after deduction of income tax, and, in particular, every F436such person who is a bankF886or building society, 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 [F32of 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 F31actually 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—
F33a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.
F4351A
In this section “bank” has the meaning given by F887section 991 of ITA 2007.
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.
C73
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, F34... .
F354A
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.
F6064B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6064C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F365
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;
F607c
that if a person is required—
i
to make and deliver a return under subsection (1) above;
ii
to include information in such a return under any provision made under paragraph (a) above; or
iii
to furnish information under any provision made under paragraph (b) above,
and the notice under subsection (1) above specifies the form in which the return is to be made and delivered, or the information is to be included or furnished, the person shall make and deliver the return, or include or 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.
F608The further information required as mentioned in paragraph (a) or (b) above may include, in prescribed cases, the name and address of the person beneficially entitled to the interest paid or credited.
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,
F609aa
may make provision with respect to the furnishing of information by persons required—
i
to make and deliver a return under subsection (1) above;
ii
to include information in such a return under any provision made under subsection (5)(a) above; or
iii
to furnish information under any provision made under subsection (5)(b) above,
including the inspection of books, documents and other records on behalf of the Board;
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.
F8887
In the application of this section in relation to building societies, references to interest include references to dividends.
For this purpose “dividend” includes any distribution (whether or not described as a dividend).
C47318 Interest paid without deduction of income tax.
1
Any person F610by or through whom any interest is paid in the year 1969—70 or any subsequent year of assessment without deduction of income tax F248or after deduction of income taxF37... 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 F249actually 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 F611by whom any such interest is received 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 F250the 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 F38subsection (1) above applies include any officer in any public office or in any department of the Crown.
F6123
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6133AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F393A
A notice under this section shall not require information with respect to interest paid F614or received in a year of assessment ending more than three years before the date of the giving of the notice.
F403B
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.
F615The further information required as mentioned in paragraph (a) above may include, in prescribed cases, the name and address of the person beneficially entitled to the interest paid or received.
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,
F616aa
may make provision with respect to the furnishing of information by persons required to furnish information under subsection (1) above, or under any provision made under subsection (3B)(a) above, including the inspection of books, documents and other records on behalf of the Board;
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.
F6173D
For the purposes of this section interest shall be treated as received by any person if it is received by another person at his direction or with his consent.
3E
For the purposes of this section the following shall be treated as interest—
a
any dividend in respect of a share in a building society;
b
any amount to which a person holding a F828deeply discounted security is entitled on the redemption of that security; and
c
any foreign dividend.
F8293F
In subsection (3E)(b) above “deeply discounted security” has the same meaning as in Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply discounted securities) (see section 430 of that Act).
3G
In subsection (3E)(c) above “foreign dividend” means any annual payment, interest or dividend payable out of, or in respect of the stocks, funds, shares or securities of—
a
a body of persons that is not resident in the United Kingdom, or
b
a government or public or local authority in a country outside the United Kingdom.
F414
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18AF42 Other payments and licences etc.
1
Any person by whom any payment out of public funds is made by way of grant or subsidy shall, on being so required by a notice given to him by an inspector, furnish to the inspector, within the time limited by the notice—
a
the name and address of the person to whom the payment has been made or on whose behalf the payment has been received, and
b
the amount of the payment so made or received,
and any person who receives any such payment on behalf of another person shall on being so required furnish to the inspector the name and address of the person on whose behalf the payment has been received, and its amount.
2
Any person to whom licences or approvals are issued or a register is maintained shall, on being so required by a notice given to him by an inspector, furnish to the inspector within the time limited by the notice—
a
the name and address of any person who is or has been the holder of a licence or approval issued by the first-mentioned person, or to whom an entry in that register relates or related; and
b
particulars of the licence or entry.
3
The persons to whom this section applies include any department of the Crown, any public or local authority and any other public body.
4
A notice is not to be given under this section unless (in the inspector’s reasonable opinion) the information required is or may be relevant to any tax liability to which a person is or may be subject, or the amount of any such liability.
5
A notice under this section shall not require information with respect to a payment which was made, or to a licence, approval or entry which ceased to subsist—
a
before 6th April 1988; or
b
in a year of assessment ending more than three years before the date of the giving of the notice.
6
For the purposes of this section a payment is a payment out of public funds if it is provided directly or indirectly by the Crown, by any Government, public or local authority whether in the United Kingdom or elsewhere or by any Community institution.
19 Information for purposes of F831charge on profits of UK property businesses or under Schedule A.
1
For the purpose of obtaining particulars of profits or gains chargeable to tax F830under Chapter 3 of Part 3 of ITTOIA 2005 as the profits of a UK property business or 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 [F4334 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.
F444
A notice under this section shall not require information with respect to—
a
the terms applying to the lease, occupation or use of the land, or
b
consideration given, or
c
payments arising,
in a year of assessment ending more than three years before the date of the giving of the notice.
Production of accounts, books and other information
C307C33619AF281Power to call for documents for purposes of certain enquiries.
F6521
This section applies where an officer of the Board gives notice of enquiry under section 9A(1) or 12AC(1) of this Act to a person (“the taxpayer”).
2
For the purpose of F653the enquiry, 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 whichF654—
i
the return is incorrect or incomplete, or
ii
in the case of an enquiry which is limited under section 9A(5) or 12AC(5) of this Act, the amendment to which the enquiry relates is incorrect, and
b
to furnish the officer with such accounts or particulars as he may reasonably require for that purpose.
F4372A
The officer of the Board may also (whether or not he imposes a requirement under subsection (2) above), by a 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 making a determination for the purposes of section F6559D(1)(c) or 12AE(1)(c) of this Act, 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 F438subsection (2) or (2A) 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 F443subsection (2), (2A) or (3) above.
5
A notice under F439subsection (2) or (2A) above does not oblige the taxpayer to produce documents or furnish accounts or particulars relating to the conduct ofF656—
i
any pending appeal by him, or
ii
any pending referral to the Special Commissioners under section 28ZA of this Act to which he is a party.
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 F440subsection (2) or (2A) 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 F441subsection (2) or (2A) 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 F442subsection (2) or (2A) 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.
F44411
The determination of the Commissioners of an appeal under subsection (6) above shall be final and conclusive (notwithstanding any provision having effect by virtue of section 56B of this Act).
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.
C168C319C345C408C466C46320F53 Power to call for documents of taxpayer and others.
C5001
Subject to this section, an inspector may by notice in writing require [F45a 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.]
C5002
Subject to this section, the Board may by notice in writing require [F45a 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].
C5003
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 [F45other 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[F46; and the persons who may be required to deliver or make available a document under this subsection include the Director of Savings.]
F48C5004
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F48C5005
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C5006
C5007
Notices under [F47subsection (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.
F50C5007A
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.]
C500F2827AB
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.
C5007AC
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.
F49C5008
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 .]
F518A
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 .]
F52C202C5008C
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.
C5008D
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.]
C500F2838E
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.
C5008F
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.
C5008G
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.
C5008H
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.
C5009
To the extent specified in section 20B below, the above provisions are subject to the restrictions of that section.C9
20AF53 Power to call for papers of tax accountant.
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 [F54a 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.
F551A
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 [F56penalty]; 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 [F56imposition] of a penalty, do not include appeal against the amount of the penalty.
3
A notice is not to be given to any person under this section unless with the consent of the appropriate judicial authority; and that authority is to give his consent only on being satisfied that in all the circumstances the inspector is justified in so proceeding.
4
5
To the extent specified in section 20B below, the above provisions are subject to the restrictions of that section.
C169C319C346C409C467C46420BF53 Restrictions on powers under ss.20 and 20A.
1
Before a notice is given to a person by an inspector under [F58section 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[F59, or to furnish the particulars in question]; and the inspector must not apply for consent under [F58section 20(7) or (8A)] or, as the case may be, section 20A(3), until the person has been given that opportunity.
F601A
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.
C3622
A notice under section 20(1) does not oblige a person to deliver documents [F60or furnish particulars] relating to the conduct of any pending appeal by him; a notice under section 20(3) [F61or (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.
C103
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.
C2004
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), [F61or (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), [F62does 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.
C3586
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 F63... if more than 6 years have elapsed since the death.
C2018
A notice under section 20(3) [F61or (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.
C201F649
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.
C20110
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).
C20111
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.
C20112
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.
C20113
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.
C20114
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.
C38820BAF618Orders for the delivery of documents.
1
The appropriate judicial authority may make an order under this section if satisfied on information on oath given by an authorised officer of the Board—
a
that there is reasonable ground for suspecting that an offence involving serious fraud in connection with, or in relation to, tax is being, has been or is about to be committed, and
b
that documents which may be required as evidence for the purposes of any proceedings in respect of such an offence are or may be in the power or possession of any person.
2
An order under this section is an order requiring the person who appears to the authority to have in his possession or power the documents specified or described in the order to deliver them to an officer of the Board within—
a
ten working days after the day on which notice of the order is served on him, or
b
such shorter or longer period as may be specified in the order.
For this purpose a “working day” means any day other than a Saturday, Sunday or public holiday.
3
Where in Scotland the information mentioned in subsection (1) above relates to persons residing or having places of business at addresses situated in different sheriffdoms—
a
an application for an order may be made to the sheriff for the sheriffdom in which any of the addresses is situated, and
b
where the sheriff makes an order in respect of a person residing or having a place of business in his own sheriffdom, he may also make orders in respect of all or any of the other persons to whom the information relates (whether or not they have an address within the sheriffdom).
4
Schedule 1AA to this Act contains provisions supplementing this section.
C170C320C347C389C409C465C46820BBF65 Falsification etc. of documents.
1
Subject to subsections (2) to (4) below, a person shall be guilty of an offence if he intentionally falsifies, conceals, destroys or otherwise disposes of, or causes or permits the falsification, concealment, destruction or disposal of, a document which—
a
he has been required by a notice under section 20 or 20A above F619or an order under section 20BA 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 F620or the order is made, unless before the end of that period the inspector or an officer of the Board has notified the person in writing that the notice F621or order 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.
F98220C Entry with warrant to obtain documents.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F98220CC Procedure where documents etc. are removed.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20DF53 Interpretation of ss.20 to 20C.
1
For the purposes of F984sections 20A and 20BA above, “the appropriate judicial authority” is—
a
in England and Wales, a Circuit judge F815or a District Judge (Magistrates' Courts);
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 [F66or 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.
C171F4923
Without prejudice to section 127 of the Finance Act 1988, in sections 20 to 20CC above “document” means, subject to sections 20(8C) and 20A(1A), anything in which information of any description is recorded.
C11C12C13C153C47621 Stock jobbers’ transactions.
F4931
The Board may exercise the powers conferred by this section as respects, and in connection with, any business consisting in or involving dealings in securities; and for the purposes of this section it shall be immaterial whether those dealings are or, as the case may be, were—
a
on behalf of persons other than the person carrying on the business;
b
by that person on his own behalf; or
c
a mixture of the two.
2
With a view to obtaining information about F494securities transactions in the course of a business within subsection (1) above, the Board may serve on the F495personF67... 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 F496securities transactions in the course of any business of a person other than the broker which is a business within subsection (1) above.
F4974
Where a person (“the recipient”) who is not a broker has directly or indirectly received from another person any payment which—
a
is made by that other person in the course of a business within subsection (1) above, and
b
is a payment treated by that other person as made in respect of interest on securities,
the Board may by notice in writing require the recipient 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, a third person and (if it is) to furnish the name and address of that third person.
4A
Where a person (“the payer”) has directly or indirectly paid to another person any sum which—
a
constitutes a receipt by that other person in the course of a business within subsection (1) above, and
b
is a receipt treated by that other person as accruing in respect of interest on securities,
the Board may by notice in writing require the payer 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, a third person and (if it is) to furnish the name and address of that third person.
5
If, for the purpose of obtaining (from any persons F498at all) information directly or indirectly relating to any F499securities 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.
F5005A
Where it appears to the Board that a person may have incurred a liability to pay or account for tax under F890Chapter 2 of Part 11 or Chapter 9 of Part 15 of ITA 2007 (manufactured payments), the Board may by notice served on that person require him, within such period (not being less than 28 days) as may be specified in the notice, to provide the Board with information which—
a
is available to that person; and
b
is or may be relevant to whether that person has incurred such a liability, or to the extent of such a liability.
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.
F5017
In this section—
“broker” means any person who is a member of a recognised investment exchange, within the meaning F713given by section 285(1)(a) of the Financial Services and Markets Act 2000;
“interest” includes dividends;
“securities” includes shares and stock; and
“securities transaction” means—
- a
any transaction in securities;
- b
any transaction under which a payment which is representative of any interest on a security has been, is to be or may be made; or
- c
the making or receipt of such a payment.
- a
Surtax
22 Additional particulars for surtax.
The Board may F68. . . , 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.
C47723 Power to obtain copies of registers of securities.
1
The Board may cause to be served upon any body corporate a notice requiring them to deliver to the Board within a specified time, being not less than twenty-one days, a copy, certified by a duly authorised officer of such body, of the whole of, or any specified class of entries in, any register containing the names of the holders of any securities issued by them.
C142
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.
C47824 Power to obtain information as to income from securities.
1
The Board may by notice in writing require—
a
any person, being a registered or inscribed holder of any United Kingdom securities, who, in any year of assessment, has received on behalf of any other person any income arising from any such securities, or
b
any person by or through whom, in any year of assessment, any income in respect of United Kingdom securities has been paid in any case where—
i
the registered or inscribed holder of the securities is not the person to whom the income was paid, or
ii
the securities are bearer securities,
to furnish them, within such time as may be specified in the notice (not being less than twenty-eight days) with particulars of the amounts so received or, as the case may be, paid in that year (other than amounts received or paid in that year on behalf of or to any one person which did not exceed in the aggregate the sum of £15), the securities to which those amounts respectively relate, and the names and addresses of the persons on whose behalf or to whom those amounts were respectively received or paid.
2
The Board may similarly require any person who acts or has acted, directly or indirectly, as an intermediary or as one of a series of intermediaries between any such person as is specified in subsection (1)(a) or (b) above and the person or persons beneficially entitled to the income in question to furnish such information as the Board may require for the purpose of enabling them to ascertain the names and addresses of the person or persons beneficially entitled to the income and the respective amounts to which those persons were beneficially entitled.
C153
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.
F4453A
In this section “bank” has the meaning given by F891section 991 of ITA 2007.
4
In this section—
“securities” includes shares, stocks, bonds, debentures and debenture stock, and
“United Kingdom securities” means any securities issued by or on behalf of Her Majesty’s Government in the United Kingdom or the Government of Northern Ireland and any securities of a body corporate incorporated in any part of the United Kingdom.
Chargeable gains
25 Issuing houses, stockbrokers, auctioneers, etc.
1
For the purpose of obtaining particulars of chargeable gains an inspector may by notice in writing require a return under any of the provisions of this section.
2
An issuing house or other person carrying on a business of effecting public issues of shares of securities in any company, or placings of shares or securities in any company, either on behalf of the company, or on behalf of holders of blocks of shares or securities which have not previously been the subject of a public issue or placing, may be required to make a return of all such public issues or placings effected by that person in the course of the business in the period specified in the notice requiring the return, giving particulars of the persons to or with whom the shares or securities are issued, allotted or placed, and the number or amount of the shares or securities so obtained by them respectively.
3
A person not carrying on such a business may be required to make a return as regards any such public issue or placing effected by that person and specified in the notice, giving particulars of the persons to or with whom the shares or securities are issued, allotted, or placed and the number or amount of the shares or securities so obtained by them respectively.
4
A member of a stock exchange in the United KingdomC16, other than a [F69market 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 KingdomC16) 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 [F70£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 F71sections 99 and 288(1) of the 1992 Act.
F7210
In this section “market maker”, in relation to shares or securities, means a person who—
a
holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell shares or securities of the kind concerned at a price specified by him, and
b
is recognised as doing so by the Council of The Stock Exchange.
26 Nominee shareholders.
1
If, for the purpose of obtaining particulars of chargeable gains, any person in whose name any shares of a company are registered is so required by notice in writing by the Board or an inspector, he shall state whether or not he is the beneficial owner of those shares and, if not the beneficial owner of those shares or any of them, shall furnish the name and address of the person or persons on whose behalf the shares are registered in his name.
2
In this section references to shares include references to securities and loan capital.
27 Settled property.
1
2
In this section “settlement” has the meaning given by F832section 620 of ITTOIA 2005.
F7528Non-resident companies and trusts.
1
A person holding shares or securities in a company which is not resident or ordinarily resident in the United Kingdom may be required by a notice by the Board to give such particulars as the Board may consider are required to determine whether the company falls within section 13 of the 1992 Act and whether any chargeable gains have accrued to that company in respect of which the person to whom the notice is given is liable to capital gains tax under that section.
2
For the purposes of this section “company” and “shares” shall be construed in accordance with sections 99 and 288(1) of the 1992 Act.
F678PART 3A REFERRAL OF QUESTIONS DURING ENQUIRY
Pt. 3A inserted (with effect and application in accordance with s. 88(3), Sch. 29 para. 6(2) of the amending Act) by Finance Act 2001 (c. 9), Sch. 29 para. 6(1)
28ZA Referral of questions during enquiry
1
At any time when an enquiry is in progress under section 9A(1) or 12AC(1) of this Act, any question arising in connection with the subject-matter of the enquiry may be referred to the Special Commissioners for their determination.
2
Notice of referral must be given—
a
jointly by the taxpayer and an officer of the Board,
b
in writing,
c
to the Special Commissioners.
3
The notice of referral must specify the question or questions being referred.
4
More than one notice of referral may be given under this section in relation to an enquiry.
5
For the purposes of this section the period during which an enquiry is in progress is the whole of the period—
a
beginning with the day on which notice of enquiry is given, and
b
ending with the day on which the enquiry is completed.
6
In this section “the taxpayer” means—
a
in relation to an enquiry under section 9A(1) of this Act, the person to whom the notice of enquiry was given;
b
in relation to an enquiry under section 12AC(1) of this Act, the person to whom the notice of enquiry was given or his successor.
28ZB Withdrawal of notice of referral
1
Either party may withdraw a notice of referral under section 28ZA of this Act by notice in accordance with this section.
2
Notice of withdrawal must be given—
a
in writing,
b
to the other party to the referral and to the Special Commissioners,
c
before the first hearing by the Special Commissioners in relation to the referral.
28ZC Regulations with respect to referrals
1
The Lord Chancellor may make provision by regulations with respect to referrals to the Special Commissioners under—
a
section 28ZA of this Act, or
b
paragraph 31A of Schedule 18 to the Finance Act 1998.
2
Regulations under subsection (1) above may, in particular—
a
make provision with respect to any of the matters dealt with in the following provisions of this Act—
i
section 50 (procedure before the Special Commissioners),
ii
section 56 (statement of case for opinion of the High Court),
iii
section 56A (appeals from the Special Commissioners), and
iv
section 58 (proceedings in Northern Ireland), or
b
provide for any of those provisions to apply, with such modifications as may be specified in the regulations, in relation to a referral to the Special Commissioners under the provisions mentioned in subsection (1) above.
3
Regulations under subsection (1) above 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.
4
Regulations under subsection (1) above shall—
a
be made by statutory instrument, and
b
be subject to annulment in pursuance of a resolution of either House of Parliament.
5
In the following provisions any reference to an appeal includes a reference to a referral under section 28ZA of this Act or paragraph 31A of Schedule 18 to the Finance Act 1998—
a
sections 56B, 56C and 56D of this Act (power of the Lord Chancellor to make regulations about the practice and procedure to be followed in connection with appeals to the Special Commissioners); and
b
section 57 of this Act (power of the Board to make regulations about appeals relating to chargeable gains).
6
Any regulations under section 56B or 57 of this Act which are in force immediately before the commencement of subsection (1) above shall apply in relation to referrals under section 28ZA of this Act or paragraph 31A of Schedule 18 to the Finance Act 1998, subject to any necessary modifications, as they apply in relation to appeals to the Special Commissioners.
7
Regulations under this section relating to proceedings in Scotland shall not be made except with the consent of the Scottish Ministers.
28ZD Effect of referral on enquiry
1
While proceedings on a referral under section 28ZA of this Act are in progress in relation to an enquiry—
a
no closure notice shall be given in relation to the enquiry, and
b
no application may be made for a direction to give such a notice.
2
For the purposes of this section proceedings on a referral are in progress where—
a
notice of referral has been given,
b
the notice has not been withdrawn, and
c
the questions referred have not been finally determined.
3
For the purposes of subsection (2)(c) above a question referred is finally determined when—
a
it has been determined by the Special Commissioners, and
b
there is no further possibility of that determination being varied or set aside (disregarding any power to give permission to appeal out of time).
28ZE Effect of determination
1
The determination of a question referred to the Special Commissioners under section 28ZA of this Act is binding on the parties to the referral in the same way, and to the same extent, as a decision on a preliminary issue in an appeal.
2
The determination shall be taken into account by an officer of the Board—
a
in reaching his conclusions on the enquiry, and
b
in formulating any amendments of the return required to give effect to those conclusions.
3
Any right of appeal under section 31(1)(a), (b) or (c) of this Act may not be exercised so as to reopen the question determined except to the extent (if any) that it could be reopened if it had been determined as a preliminary issue in that appeal.
C308C350C401C420C421 PART IV ASSESSMENT AND CLAIMS
Pt. 4 applied (with modifications) (E.W.) (1.4.2000) by Education (Student Loans) (Repayment) Regulations 2000 (S.I. 2000/944), regs. 1(1), 20(1), 45(4)
Pt. 4 applied (with modifications) (N.I.) (1.4.2000) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2000 (S.R. 2000/121), regs. 1, 20(1), 45(4)
Pt. 4 applied (with modifications) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Working Tax Credit (Payment by Employers) Regulations 2002 (S.I. 2002/2172), regs. 1(1), 14(4)
Pt. 4 applied (with modifications) (6.4.2004) by The Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682), regs. 1, 80(5)
Pt. 4 applied (6.4.2004) by The Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682), regs. 1, 204(7)
F65728A Completion of enquiry into personal or trustee return
1
An enquiry under section 9A(1) of this Act is completed when an officer of the Board by notice (a “closure notice”) informs the taxpayer that he has completed his enquiries and states his conclusions.
In this section “the taxpayer” means the person to whom notice of enquiry was given.
2
A closure notice must either—
a
state that in the officer’s opinion no amendment of the return is required, or
b
make the amendments of the return required to give effect to his conclusions.
3
A closure notice takes effect when it is issued.
4
The taxpayer may apply to the Commissioners for a direction requiring an officer of the Board to issue a closure notice within a specified period.
5
Any such application shall be heard and determined in the same way as an appeal.
6
The Commissioners hearing the application shall give the direction applied for unless they are satisfied that there are reasonable grounds for not issuing a closure notice within a specified period.
F51528AA Amendment of return of profits made for wrong period.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F51528AB Provisions supplementary to section 28AA.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F65828B Completion of enquiry into partnership return
1
An enquiry under section 12AC(1) of this Act is completed when an officer of the Board by notice (a “closure notice”) informs the taxpayer that he has completed his enquiries and states his conclusions.
In this section “the taxpayer” means the person to whom notice of enquiry was given or his successor.
2
A closure notice must either—
a
state that in the officer’s opinion no amendment of the return is required, or
b
make the amendments of the return required to give effect to his conclusions.
3
A closure notice takes effect when it is issued.
4
Where a partnership return is amended under subsection (2) above, the officer shall by notice to each of the partners amend—
a
the partner’s return under section 8 or 8A of this Act, or
b
the partner’s company tax return,
so as to give effect to the amendments of the partnership return.
5
The taxpayer may apply to the Commissioners for a direction requiring an officer of the Board to issue a closure notice within a specified period.
6
Any such application shall be heard and determined in the same way as an appeal.
7
The Commissioners hearing the application shall give the direction applied for unless they are satisfied that there are reasonable grounds for not issuing a closure notice within a specified period.
C310C33728CF284Determination of tax where no return delivered.
F4461
This section applies where—
a
a notice has been given to any person under section 8 or 8A of this Act (the relevant section), and
b
the required return is not delivered on or before the filing date.
1A
An officer of the Board may make a determination of the following amounts, to the best of his information and belief, namely—
a
the amounts in which the person who should have made the return is chargeable to income tax and capital gains tax for the year of assessment; and
b
the amount which is payable by him by way of income tax for that year;
and subsection (1AA) of section 8 or, as the case may be, section 8A of this Act applies for the purposes of this subsection as it applies for the purposes of subsection (1) of that section.
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 F447... 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
F659proceedings have been commenced 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.
F9686
In this section “the filing date” in respect of a return for a year of assessment (Year 1) means either—
a
31st January of Year 2, or
b
if the notice under section 8 or 8A was given after 31st October of Year 2, the last day of the period of three months beginning with the day on which the notice is given.
F59028D Determination of corporation tax where no return delivered.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F59028E Determination of corporation tax where notice complied with in part.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F59028F Corporation tax determinations: supplementary.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C18C399F28829 Assessment where loss of tax discovered.
C5381
If an officer of the Board or the Board discover, as regards any person (the taxpayer) and a F517year of assessment—
C487a
that any F516income which ought to have been assessed to income tax, or chargeable gains which ought to have been assessed to capital gains tax, have not been assessed, or
b
that an assessment to tax is or has become insufficient, or
C157c
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.
C1492
Where—
a
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 F517year of assessment 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.
C149C1513
Where the taxpayer has made and delivered a return under F518section 8 or 8A of this Act in respect of the relevant F517year of assessment, he shall not be assessed under subsection (1) above—
a
in respect of the F517year of assessment mentioned in that subsection; and
b
F522... 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
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.
C4756
For the purposes of subsection (5) above, information is made available to an officer of the Board if—
a
b
it is contained in any claim made as regards the relevant F517year of assessment 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.
C4757
In subsection (6) above—
a
any reference to the taxpayer’s return under F521section 8 or 8A of this Act in respect of the relevant F517year of assessment includes—
i
a reference to any return of his under that section for either of the two immediately preceding chargeable periods; and
b
any reference in paragraphs (b) to (d) to the taxpayer includes a reference to a person acting on his behalf.
F8597A
The requirement to fulfil one of the two conditions mentioned above does not apply so far as regards any income or chargeable gains of the taxpayer in relation to which the taxpayer has been given, after any enquiries have been completed into the taxpayer's return, a notice under section 804ZA of the principal Act.
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 F517year of assessment is a reference to—
a
in the case of the situation mentioned in paragraph (a) or (b) of subsection (1) above, the F517year of assessment mentioned in that subsection; and
b
in the case of the situation mentioned in paragraph (c) of that subsection, the F517year of assessment in respect of which the claim was made.
F52310
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C22C19C20C134C143C48830F80 Recovery of overpayment of tax, etc.
C21C370C4891
Where an amount of F524income tax or capital gains 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.
F761A
Subsection (1) above shall not apply where the amount of tax which has been repaid is assessable under section 29 of this Act.
C489F2891B
Subsections (2) to (8) of section 29 of this Act shall apply in relation to an assessment under subsection (1) above as they apply in relation to an assessment under subsection (1) of that section; and subsection (4) of that section as so applied shall have effect as if the reference to the loss of tax were a reference to the repayment of the amount of tax which ought not to have been repaid.
2
In any case where—
a
b
the whole or any part of that repayment has been paid to any person but ought not to have been paid to him; and
c
that repayment ought not to have been increased either at all or to any extent;
then the amount of the repayment assessed under subsection (1) above may include an amount equal to the amount by which the repayment ought not to have been increased.
F5262A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
In any case where—
a
b
that payment ought not to have been increased either at all or to any extent;
then an amount equal to the amount by which the payment ought not to have been increased may be assessed and recovered as if it were unpaid income tax F527... .
F5283A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F833C4894
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5294A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C370C489F2905
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 F530year of assessment following that in which the amount assessed was repaid or paid as the case may be, or
C3706
Subsection (5) above is without prejudice to F79section 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.
C37130AF285Assessing procedure.
1
Except as otherwise provided, all assessments to tax which are not self-assessments shall be made by an officer of the Board.
2
All income tax which falls to be charged by an assessment which is not a self-assessment may, notwithstanding that it was chargeable under more than one F834Part or Chapter of ITEPA 2003 or ITTOIA 2005, 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.
30BF286Amendment of partnership statement where loss of tax discovered.
C5391
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 F384or allowance claimed by the representative partner is or has become excessive,
the officer or, as the case may be, the Board may, subject to subsections (3) and (4) below, by notice to that partner so F664amend the partnership return as to make good the omission or deficiency or eliminate the excess.
C539F6652
Where a partnership return is amended under subsection (1) above, the officer shall by notice to each of the relevant partners amend—
a
the partner’s return under section 8 or 8A of this Act, or
b
the partner’s company tax return,
so as to give effect to the amendments of the partnership return.
C1503
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.
C1504
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 F666partnership return; 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
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—
F532“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;
- a
“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.
C2331F679 Appeals: right of appeal
1
An appeal may be brought against—
a
any amendment of a self-assessment under section 9C of this Act (amendment by Revenue during enquiry to prevent loss of tax),
b
any conclusion stated or amendment made by a closure notice under section 28A or 28B of this Act (amendment by Revenue on completion of enquiry into return),
c
any amendment of a partnership return under section 30B(1) of this Act (amendment by Revenue where loss of tax discovered), or
d
any assessment to tax which is not a self-assessment.
2
An appeal under subsection (1)(a) above against an amendment of a self-assessment made while an enquiry is in progress shall not be heard and determined until the enquiry is completed.
3
A determination under section F835... 12AE of this Act (choice between different Cases of Schedule D) may not be questioned on an appeal under this section.
4
This section has effect subject to any express provision in the Taxes Acts, including in particular any provision making one kind of assessment conclusive in an appeal against another kind of assessment.
C48031AF679Appeals: notice of appeal
1
Notice of an appeal under section 31 of this Act must be given—
a
in writing,
b
within 30 days after the specified date,
c
to the relevant officer of the Board.
2
In relation to an appeal under section 31(1)(a) or (c) of this Act—
a
the specified date is the date on which the notice of amendment was issued, and
b
the relevant officer of the Board is the officer by whom the notice of amendment was given.
3
In relation to an appeal under section 31(1)(b) of this Act—
a
the specified date is the date on which the closure notice was issued, and
b
the relevant officer of the Board is the officer by whom the closure notice was given.
4
In relation to an appeal under section 31(1)(d) of this Act—
a
the specified date is the date on which the notice of assessment was issued, and
b
the relevant officer of the Board is the officer by whom the notice of assessment was given.
C417C427C5055
The notice of appeal must specify the grounds of appeal.
C417C427C5056
On the hearing of the appeal the Commissioners may allow the appellant to put forward grounds not specified in the notice, and take them into consideration, if satisfied that the omission was not wilful or unreasonable.
C418C428C50631BF679Appeals: appeals to General Commissioners
1
An appeal under section 31(1) of this Act shall be to the General Commissioners, subject to—
a
section 31C of this Act (appeals to be brought to Special Commissioners),
b
any provision made by or under Part 5 of this Act, and
c
any other provision of the Taxes Acts providing for an appeal to be brought to the Special Commissioners to the exclusion of the General Commissioners.
2
Subsection (1) above has effect subject to any election under section 31D of this Act (election to take appeal to Special Commissioners).
31CF679Appeals: appeals to Special Commissioners
1
Unless the Special Commissioners otherwise direct, an appeal under section 31(1)(a), (b) or (c) of this Act shall be to the Special Commissioners if—
a
the appeal relates to a return in relation to which notice of enquiry has been given under section 9A(1) or 12AC(1) of this Act, and
b
notice has been given under section 28ZA of this Act referring a question relating to the subject-matter of that enquiry to the Special Commissioners.
This applies even if the notice of referral was subsequently withdrawn.
2
An appeal under section 31(1)(d) of this Act (appeal against assessment other than self-assessment) shall be to the Special Commissioners if the assessment was made—
a
by the Board, or
b
under F892section 963(3) of ITA 2007.
C419C429C50731DF679Appeals: election to bring appeal before Special Commissioners
C3791
The appellant may elect (in accordance with section 46(1) of this Act) to bring before the Special Commissioners an appeal under section 31(1) of this Act that would otherwise be to the General Commissioners.
C380C381C4112
Any such election 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 (5) below and have not revoked it.
C380C381C4113
Where an election has been made under subsection (1) above, the inspector or other officer of the Board may refer the election to the General Commissioners.
C380C381C4114
A reference under subsection (3) above must be made—
a
after giving notice to the appellant, and
b
before the determination of the appeal in respect of which the election has been made.
C380C381C4115
On a reference under subsection (3) above 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.
C380C381C4116
If at any time after giving a direction under subsection (5) 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.
C380C381C4117
A decision to give or revoke a direction under subsection (5) above shall be final.
Relief for excessive assessments
C14732 Double assessment.
1
If on a claim made to the Board it appears to their satisfaction that a person has been assessed to tax more than once for the same cause and for the same chargeable period F81... , 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.
C242
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.
C30C2833 Error or mistake.
C29C25C26C27C126C141F5331
If a person who has paid income tax or capital gains tax under an assessment (whether a self-assessment 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 five years after the 31st January next following the year of assessment to which the return relates, make a claim to the Board for relief.
2
F2912A
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; F1001...
b
an error or mistake in a claim which is included in the returnF1002, or
c
an error or mistake consisting of the making of a claim under section 809B of ITA 2007 (claim for remittance basis).
C28C293
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.
C294
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 F324appeal under section 56A of this Act against the determination of the Special Commissioners except on a point of law arising in connection with the computation of profits.
F834A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
In this section“profits”—
a
in relation to income tax, means incomeF534, and
b
in relation to capital gains tax, means chargeable gains,
F535c
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F83d
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33AF287Error or mistake in F668partnership return .
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 F536... was excessive by reason of some error or mistake in a F669partnership returnF969for a year of assessment (Year 1), or for a relevant period which ends in Year 1.
2
One of those persons (the representative partner) may, not later than F97031st January of Year 6, 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 F670partnership return so as to give such relief in respect of the error or mistake as is reasonable or just.
F6734
Where a partnership return is amended under subsection (3) above, the Board shall by notice to each of the relevant partners amend—
a
the partner’s return under section 8 or 8A of this Act, or
b
the partner’s company tax return,
so as to give effect to the amendments of the partnership return.
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 F671partnership return 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.
F4488
Subject to subsection (8A) below, the determination of the Special Commissioners of an appeal under subsection (6) above shall be final and conclusive (notwithstanding any provision having effect by virtue of section 56B of this Act).
8A
Subsection (8) above does not apply in relation to a point of law arising in connection with the computation of profits.
9
In this section—
F971. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“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 F672partnership return was made.
F972“relevant period” means a period in respect of which a return is required.
10
Any reference in this section to the representative partner includes, unless the context otherwise requires, a reference to any successor of his.
Time limits
C529C31C49034Ordinary time limit of six years.
C32C33C34C123C135C138C4911
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, F537an assessment to income tax or capital gains tax may be made at any time not later than five years after the 31st January next following the year of assessment 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.
35F795Time limit: income received after year for which it is assessable
1
Where income to which this section applies is received in a year of assessment subsequent to that for which it is assessable, an assessment 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
This section applies to—
a
employment income,
b
pension income, and
c
social security income.
C211C210C35C155C156C481C52536F84Fraudulent or negligent conduct.
C36C37C124C139C136C4921
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 F538loss of income tax or capital gains 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 F539not later than 20 years after the 31st January next following the year of assessment to which it relates.
F2932
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.
F853A
F864
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.
F25237 Neglect: income tax and capital gains tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37AF89Effect of assessment where allowances transferred.
Where an assessment is made on any person for the purpose of making good a loss of tax wholly or partly attributable to F87fraudulent or negligent conduct, the fact that the person’s F294liability 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 F295any F895deduction from net income or tax reduction made in the case of that person’s spouseF896or civil partnerF729... by virtue of section F88257BBF599... or 265 of the principal Act F897or section 39, 51 or 52 of ITA 2007F729... ; F296and the entitlement in that case of the first-mentioned person for the year in question to any F895deduction from net income or tax reduction shall be treated as correspondingly reduced.
F25338 Modification of s.37 in relation to partnerships.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F25439 Neglect: corporation tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C212C38C48240 Assessment on personal representatives.
C39C40C125C137C1401
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 F297the period of three years beginning with the 31st January next following the year of assessment in which the deceased died.
C39C40C125C137C1402
F90... , for the purpose of making good to the Crown any loss of tax attributable to the F91fraudulent 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 F297the period of three years beginning with the 31st January next following the year of assessment in which he died.
3
In F92this section “tax” means income tax or capital gains tax.
F934
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.
F944
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F945
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F25541 Leave of General or Special Commissioners required for certain assessments.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F251Corporation tax determinations
Ss. 41A, 41B, 41C and cross-heading inserted (with effect in relation to accounting periods ending after the day appointed for the purposes of s. 10 of the Taxes Act 1988) by Finance Act 1990 (c. 29), s. 95 (with s. 96)
F54041ADetermination procedure
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F54041BReduction of determination
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F54041CTime limits
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Claims
C152C196C372C373C493C533C531F29842 Procedure for making claims etc.
1
Where any provision of the Taxes Acts provides for relief to be given, or any other thing to be done, on the making of a claim, this section shall, unless otherwise provided, have effect in relation to the claim.
F3851A
Subject to subsection (3) below, a claim for a relief, an allowance or a repayment of tax shall be for an amount which is quantified at the time when the claim is made.
2
Subject to F387subsections (3) and (3A) below, where notice has been given under section 8, 8A F541... 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
F4493A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4493B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5444
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5454A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
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 F674partnership return, 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
b
section 43(5) of the Finance Act 1989;
F631c
sections 3, 83, 89, 129, 131, 135, 177, 183, 266, 268, 290, 355, 381 and 569 of the Capital Allowances Act; F836...
d
sections 40B(5), 40D, 41 and 42 of the Finance (No. 2) Act 1992F899...
f
sections 668 and 669 of ITA 2007.
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 F542... 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
11
Schedule 1A to this Act shall apply as respects any claim F454or election which—
a
F391b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F45111A
Schedule 1B to this Act shall have effect as respects certain claims for relief involving two or more years of assessment.
F45512
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
In this section “profits”—
a
in relation to income tax, means incomeF547, and
b
in relation to capital gains tax, means chargeable gains, and
F548c
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C44C41C532C53443 Time limit for making claims.
C42C43C127C142F5501
Subject to any provision of the Taxes Acts prescribing a longer or shorter period, no claim for relief in respect of income tax or capital gains tax may be made more than five years after the 31st January next following the year of assessment 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.
F953
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C20843AF97Further assessments: claims etc.
1
This section applies where—
F551a
F600... by virtue of section 29 of this Act an assessment to income tax or capital gains tax is made on any person for a year of assessment, 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 F552year of assessment 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.
F962A
In subsection (2) above, “claim, election, application or notice” does not include F775an election under—
a
b
Schedule 13B to F903the principal Act (elections as to transfer of children’s tax credit), or
c
section 35(5) of the Taxation of Chargeable Gains Act 1992 (election for assets to be re-based to 1982).
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 F552year of assessment if—
a
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 F553year of assessment to which the assessment relates, or
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 F553year of assessment.
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.
43BF98Limits on application of section 43A.
1
If the effect of the exercise by any person of a power conferred by section 43A(2) above—
a
to make or give a claim, election, application or notice, or
b
to revoke or vary a claim, election, application or notice previously made or given,
would be to alter the liability to tax of another person, that power may not be exercised except with the consent in writing of that other person, or where he has died, his personal representatives.
2
Where—
a
a power conferred by subsection (2) of section 43A above is exercised in consequence of an assessment made on a person, and
b
the exercise of the power increases the liability to tax of another person,
that section shall not apply by reason of any assessment made because of that increased liability.
3
In any case where—
a
one or more relevant claims, elections, applications or notices are made, given, revoked or varied by virtue of the application of section 43A above in the case of an assessment, and
b
the total of the reductions in liability to tax which, apart from this subsection, would result from the action mentioned in paragraph (a) above would exceed the additional liability to tax resulting from the assessment,
the excess shall not be available to reduce any liability to tax.
4
Where subsection (3) above has the effect of limiting either the reduction in a person’s liability to tax for more than one period or the reduction in the liability to tax of more than one person, the limited amount shall be apportioned between the periods or persons concerned—
a
except where paragraph (b) below applies, in such manner as may be specified by the inspector by notice in writing to the person or persons concerned, or
b
where the person concerned gives (or the persons concerned jointly give) notice in writing to the inspector within the relevant period, in such manner as may be specified in the notice given by the person or persons concerned.
5
For the purposes of paragraph (b) of subsection (4) above the relevant period is the period of 30 days beginning with the day on which a notice under paragraph (a) of that subsection is given to the person concerned or, where more than one person is concerned, the latest date on which such notice is given to any of them.
43CF774Consequential claims etc
1
Where—
a
a return is amended under section 28A(2)(b), 28B(2)(b) or 28B(4), and
b
the amendment is made for the purpose of making good to the Crown any loss of tax attributable to fraudulent or negligent conduct on the part of the taxpayer or a person acting on his behalf,
sections 36(3) and 43(2) apply in relation to the amendment as they apply in relation to any assessment under section 29.
2
Where—
a
a return is amended under section 28A(2)(b), 28B(2)(b) or 28B(4), and
b
the amendment is not made for the purpose mentioned in subsection (1)(b) above,
sections 43(2), 43A and 43B apply in relation to the amendment as they apply in relation to any assessment under section 29.
3
References to an assessment in sections 36(3), 43(2), 43A and 43B, as they apply by virtue of subsection (1) or (2) above, shall accordingly be read as references to the amendment of the return.
4
Where it is necessary to make any adjustment by way of an assessment on any person—
a
in order to give effect to a consequential claim, or
b
as a result of allowing a consequential claim,
the assessment is not out of time if it is made within one year of the final determination of the claim.
For this purpose a claim is not taken to be finally determined until it, or the amount to which it relates, can no longer be varied, on appeal or otherwise.
5
In subsection (4) above “consequential claim” means any claim, supplementary claim, election, application or notice that may be made or given under section 36(3), 43(2) or 43A (as it applies by virtue of subsection (1) or (2) above or otherwise).
C68C65C66C67C238C309C351C412C400C415C422C423C456C462C471C485C523C530 PART V APPEALS AND OTHER PROCEEDINGS
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
Pt. 5 applied (30.1.1992) by Income Tax (Building Societies) (Audit Powers) Regulations 1992 (S.I. 1992/10), reg. 10(3) (revoked (31.10.2008) by S.I. 2008/2682, Sch. 3)
Pt. 5 applied (30.1.1992) by The Income Tax (Deposit-takers) (Audit Powers) Regulations 1992 (S.I. 1992/12), reg. 10(3) (revoked (31.10.2008) by S.I. 2008/2682, Sch. 3)
Pt. 5 applied (with modifications) (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 15(3), 173(4), Sch. 2 para.8 (with s. 108(5))
Pt. 5 applied (1.10.1993) by The Income Tax (Manufactured Overseas Dividends) Regulations 1993 (S.I. 1993/2004), reg. 11(10)
Pt. 5 applied (6.4.1999) by The Overseas Insurers (Tax Representatives) Regulations 1999 (S.I. 1999/881), art. 1, reg. 13(4)
Pt. 5 applied (with modifications) (1.4.2000) by Education (Student Loans) (Repayment) Regulations 2000 (S.I. 2000/944), regs. 1(1), 20(1), 45(4)
Pt. 5 applied (with modifications) (N.I.) (1.4.2000) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2000 (S.R. 2000/121), regs. 1, 20(1), 45(4)
Pt. 5 applied (with modifications) (1.9.2002 for specified purposes, 1.1.2003 for specified purposes, 6.4.2003 for specified purposes) by Tax Credits Act 2002 (c. 21), ss. 39(6), 61; S.I. 2002/1727, art. 2
Pt. 5 applied in part (with modifications) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Working Tax Credit (Payment by Employers) Regulations 2002 (S.I. 2002/2172), regs. 1(1), 8(9), 14(4)
Pt. 5 applied (with modifications) (18.6.2003) by The Tax Credits (Employer Penalty Appeals) Regulations 2003 (S.I. 2003/1382), regs. 1, 3-10
Pt. 5 applied in part (with modifications) (6.4.2004) by The Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682), regs. 1, 80(5)
Pt. 5 applied (6.4.2004) by The Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682), regs. 1, 204(7)
Pt. 5 applied (22.7.2004) by Finance Act 2004 (c. 12), s. 114(6)
Pt. 5 applied (6.4.2005) by Child Trust Funds Act 2004 (c. 6), ss. 23(6), 27; S.I. 2004/3369, art. 2(1)
Pt. 5 applied in part (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), ss. 218(7), 883(1) (with s. 196, Sch. 2)
Pt. 5 applied (6.4.2006) by The Registered Pension Schemes (Relief at Source) Regulations 2005 (S.I. 2005/3448), regs. 1, 12(5)
Pt. 5 applied (with application in accordance with reg. 1(2) of the amending S.I.) by The Income Tax (Purchased Life Annuities) Regulations 2008 (S.I. 2008/562), regs. 1(1), 20 (with reg. 27)
Pt. 5 applied (21.7.2008) by Finance Act 2008 (c. 9), ss. 113, 114(7), Sch. 36 para. 48(5) (with Sch. 36 para. 38)
Jurisdiction
C220C22744 General Commissioners.
1
Proceedings before the General Commissioners under the Taxes Acts shall, subject to the provisions of this section, be brought before the General Commissioners for the division in which the place given by the rules in Schedule 3 to this Act is situated.
F4561A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4561B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C383F992
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 F457... .
C3833
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.
C383F1003A
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.
C3834
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.
C45C3835
Anything to be done by the General Commissioners may, save as otherwise expressly provided by the Taxes Acts F325or by regulations under section 46A of this Act, be done by any two or more General Commissioners .
45 Quorum of Special Commissioners.
1
Anything to be done under any Act (including, except where otherwise expressly provided, any Act passed after this Act) by, to or before the Special Commissioners F101shall, except in any case where the Presiding Special Commissioner directs otherwise be done by, to or before a single Special Commissioner, F102... ; F326...
F3271A
Nothing in this section applies in relation to proceedings as defined in regulation 2 of the Special Commissioners Regulations but, subject to that, this section applies not only for the purposes of the Taxes Acts but also for the purposes of any other affairs under the care and management of the Board.
F1042
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Proceedings broughtF103, 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.
F1044
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1045
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1046
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46 General and Special Commissioners.
C209C458C457C495C499C498C497C4961
A right to elect to bring an appeal or other proceedings under the Taxes Acts F594or Part II of the Social Security Contributions (Transfer of Functions, etc.) Act 1999F597or by Part III of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 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
C283C163C241C24646AC46F105 Regulations about jurisdiction.
C2541
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;
F5951A
In subsection (1) above “the Taxes Acts” includes Part II of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 F598or by Part III of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999.
C256C2592
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.
C256C2593
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.
C256C2594
Regulations under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.
46BF459Questions to be determined by Special Commissioners.
1
In so far as the question in dispute on an appeal to which this section applies is a question which under this section is to be determined by the Special Commissioners, the question shall be determined by them.
2
This section applies to—
F675a
an appeal against an amendment of a self-assessment under section 9C of this Act or paragraph 30 of Schedule 18 to the Finance Act 1998;
aa
an appeal against an amendment of a return under paragraph 34(2) of Schedule 18 to the Finance Act 1998;
b
an appeal against a conclusion stated or amendment made by a closure notice under section 28A or 28B of this Act;
c
an appeal against an amendment of a partnership return under section 30B(1) of this Act;
d
an appeal against an assessment to tax which is not a self-assessment;
e
an appeal against F676a conclusion stated or amendment made by a closure notice under paragraph 7(2) of Schedule 1A to this Act relating to a claim or election made otherwise than by being included in a return;
f
an appeal against a decision contained in a F677closure notice under paragraph 7(3) of Schedule 1A to this Act disallowing in whole or in part a claim or election made otherwise than by being included in a return.
3
Any question—
a
of the value of any shares or securities in a company resident in the United Kingdom, other than shares or securities quoted in The Stock Exchange Daily Official List, and
b
arising in relation to the taxation of chargeable gains (whether under capital gains tax or corporation tax) or in relation to a claim under the 1992 Act,
is a question to be determined by the Special Commissioners.
4
Any question as to the application of any of the following provisions F838... is a question to be determined by the Special Commissioners—
a
F839Chapter 5 of Part 5 of ITTOIA 2005 (settlements);
F840b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
d
section 747(4)(a) F905of the principal Act (liability in respect of controlled foreign company).
F8414A
Any question as to the application of—
a
Part XVI of the principal Act (administration of estates: corporation tax), or
b
Chapter 6 of Part 5 of ITTOIA 2005 (administration of estates: income tax),
is a question to be determined by the Special Commissioners.
5
Any question as to the application of—
a
section 830 of the principal Act, or
b
section 276 of the 1992 ActF743, or
c
section 41 of ITEPA 2003,F842or
d
section 874 of ITTOIA 2005,F906, or
e
section 1013 of ITA 2007,
(liability in relation to territorial sea and designated areas) is a question to be determined by the Special Commissioners.
46C Jurisdiction of Special Commissioners over certain claims included in returns.
1
In so far as the question in dispute on an appeal to which this section applies concerns a claim made—
a
to the Board, or
b
under any of the provisions F907... listed in subsection (3) below,
the question shall be determined by the Special Commissioners.
2
This section applies to—
F680a
an appeal against an amendment of a self-assessment under section 9C of this Act or paragraph 30 of Schedule 18 to the Finance Act 1998;
b
an appeal against an amendment of a return under paragraph 34(2) of Schedule 18 to the Finance Act 1998;
c
an appeal against a conclusion stated or amendment made by a closure notice under section 28A or 28B of this Act;
d
an appeal against an amendment of a partnership return under section 30B(1) of this Act.
3
The provisions F908... mentioned in subsection (1) above are—
F843a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
sections 459 and 460 F909of the principal Act (exemption for certain friendly societies);
c
section 467 F910of the principal Act (exemption for certain trade unions and employers’ associations);
e
Chapter I of Part XVIII F912of the principal Act;
F913f
Part 10 of ITA 2007 (charitable trusts: claims for exemption);
g
sections 461 and 908 of ITA 2007 (reliefs in respect of royalties).
46D Questions to be determined by Lands Tribunal.
1
In so far as the question in dispute on an appeal to which this section applies—
a
is a question of the value of any land or of a lease of land, and
b
arises in relation to the taxation of chargeable gains (whether under capital gains tax or corporation tax) or in relation to a claim under the 1992 Act,
the question shall be determined by the relevant Lands Tribunal.
2
This section applies to—
F682a
an appeal against an amendment of a self-assessment under section 9C of this Act or paragraph 30 of Schedule 18 to the Finance Act 1998;
aa
an appeal against an amendment of a return under paragraph 34(2) of Schedule 18 to the Finance Act 1998;
b
an appeal against a conclusion stated or amendment made by a closure notice under section 28A or 28B of this Act;
c
an appeal against an amendment of a partnership return under section 30B(1) of this Act;
d
an appeal against an assessment to tax which is not a self-assessment;
e
an appeal against F683a conclusion stated or amendment made by a closure notice under paragraph 7(2) of Schedule 1A to this Act relating to a claim or election made otherwise than by being included in a return;
f
an appeal against a decision contained in a F684closure notice under paragraph 7(3) of Schedule 1A to this Act disallowing in whole or in part a claim or election made otherwise than by being included in a return.
3
In this section “the relevant Lands Tribunal” means—
a
in relation to land in England and Wales, the Lands Tribunal;
b
in relation to land in Scotland, the Lands Tribunal for Scotland;
c
in relation to land in Northern Ireland, the Lands Tribunal for Northern Ireland.
F45947 Special jurisdiction relating to tax on chargeable gains.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F10647A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47BF108Special jurisdiction relating to Business Expansion Scheme.
If and so far as the question in dispute on any appeal against the refusal of relief under F107Chapter 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 F107Section 294(5) of that Act, it shall be determined—
a
if the land is in England and Wales, on a reference to the Lands Tribunal;
b
if the land is in Scotland, on a reference to the Lands Tribunal for Scotland; and
c
if the land is in Northern Ireland, on a reference to the Lands Tribunal for Northern Ireland.
Proceedings before Commissioners
C47C48C221C22848 Application to appeals and other proceedings.
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 C47 are to be heard and determined in the same way as an appeal,
subject [F109to any necessary modifications, including (except in the case of applications under section 55 below) the omission of section 56(9) below].
C221C228C23349 Proceedings brought out of time.
1
An appeal may be brought out of time if on an application for the purpose an inspector or the Board is satisfied that there was a reasonable excuse for not bringing the appeal within the time limited, and that the application was made thereafter without unreasonable delay, and gives consent in writing; and the inspector or the Board, if not satisfied, shall refer the application for determination by the Commissioners C49.
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.
C51C52C221C22850 Procedure.
F3291
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3292
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3293
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3294
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F329C505
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C430F2996
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 F330... evidence—
a
that, F685... , the appellant is overcharged by a self-assessment;
b
that, F686... , 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.
C4307
If, on an appeal, it appears to the Commissioners—
a
that the appellant is undercharged to tax by a self-assessment F687... ;
b
that any amounts contained in a partnership statement F688... 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.
C430F4587A
If, on appeal, it appears to the Commissioners that a claim or election F689which was the subject of a decision contained in a closure notice under section 28A of this Act should have been allowed or disallowed to an extent different from that specified in the notice, the claim or election shall be allowed or disallowed accordingly to the extent that appears to them appropriate, but otherwise the decision in the notice shall stand good.
C430F1108
Where, on an appeal against an assessment F300(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.
F5559
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 each of the relevant partners amend—
F690a
the partner’s return under section 8 or 8A of this Act, or
b
the partner’s company tax return,
so as to give effect to the reductions or increases of those amounts.
F33151 Power of Commissioners to obtain information from appellant.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F33252 Evidence.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C167C221C22853F333Appeals against summary determination of penalties.
1
An appeal shall lie to the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland, against the summary determination by the Commissioners of any penalty pursuant to regulations under section 56B of this Act.
2
On any such appeal the court may either confirm or reverse the determination of the Commissioners or reduce or increase the sum determined.
C53C164C221C228C386C396C459C46054 Settling of appeals by agreement.
1
Subject to the provisions of this section, where a person gives notice of appeal and, before the appeal is determined by the Commissioners, the inspector or other proper officer of the Crown and the appellant come to an agreement, whether in writing or otherwise, that the assessment or decision under appeal should be treated as upheld without variation, or as varied in a particular manner or as discharged or cancelled, the like consequences shall ensue for all purposes as would have ensued if, at the time when the agreement was come to, the Commissioners had determined the appeal and had upheld the assessment or decision without variation, had varied it in that manner or had discharged or cancelled it, as the case may be.
2
Subsection (1) of this section shall not apply where, within thirty days from the date when the agreement was come to, the appellant gives notice in writing to the inspector or other proper officer of the Crown that he desires to repudiate or resile from the agreement.
3
Where an agreement is not in writing—
a
the preceding 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.
C282C56C162C48355F119 Recovery of tax not postponed.
F3011
This section applies to an appeal to the Commissioners against—
F556F691a
an amendment of a self-assessment—
i
under section 9C of this Act, or
ii
under paragraph 30 or 34(2) of Schedule 18 to the Finance Act 1998,
aa
a conclusion stated or amendment made by a closure notice under section 28A or 28B of this Act,
b
an assessment to tax other than a self-assessment,
F914c
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d
a notice under subsection (1) or (3) of section 753 of F915the principal 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
a
by the amendment or assessment, or
b
where the appeal is against a conclusion stated by a closure notice, as a result of that conclusion,
shall be due and payable as if F112there had been no appeal.
C54C359C5093
If the appellant has grounds for believing that he is overcharged to tax by the F302amendment or assessmentF693, or as a result of the conclusion stated in the closure notice,, he may, by notice in writing given to the inspector within thirty days after F694the specified date, 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.
C55F1133A
An application under subsection (3) above may be made more than thirty days after F695the specified date 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 F302amendment or assessmentF696, or as a result of the conclusion stated in the closure notice.
C54C360C5094
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 F334... evidence adduced, that there are reasonable grounds for believing that the appellant is overcharged to tax; and—
F114a
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 F302amendment 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 F302amendment 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.
F1156A
Where an appeal is brought against an F302amendment 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 F116an 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.
F1179
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 F302amendment or assessmentF697, or as a result of the conclusion stated in the closure notice, if there had been no appeal, be determined as if the tax were charged by an F302amendment 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.
F69810
In subsection (3) above, “inspector” means the inspector or other officer of the Board—
a
by whom the notice of amendment or assessment was issued, or
b
in the case of an appeal against a conclusion stated or amendment made by a closure notice, by whom the closure notice was issued.
10A
In this section “the specified date” means the date of—
a
the issue of the notice of amendment or assessment, or
b
in the case of an appeal against a conclusion stated or amendment made by a closure notice, the issue of the closure notice.
10B
References in this section to an agreement being come to with an appellant, and to 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
C59C57C58C222C229C234C43756 Statement of case for opinion of the High Court.
F3361
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3372
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
F3384
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3395
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
The High Court shall hear and determine any question or questions of law F341arising on a case stated and transmitted to the High Court under regulation 22 of the General Commissioners Regulations, and shall reverse, affirm or amend the determination in respect of which the case has been stated, or shall remit the matter to the Commissioners with the opinion of the Court thereon, or may make such other order in relation to the matter as to the Court may seem fit.
7
The High Court may cause the case to be sent back for amendment, and thereupon the case shall be amended accordingly, and judgment shall be delivered after it has been amended.
8
An appeal shall lie from the decision of the High Court to the Court of Appeal and thence to the House of Lords:
Provided that—
a
no appeal shall lie to the House of Lords from the Court of Appeal unless leave has been given under and in accordance with section 1 of the Administration of Justice (Appeals) Act 1934, and
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
F342Where a party to an appeal against an assessment has required a case to be stated under regulation 20(1) of the General Commissioners Regulations, then notwithstanding that the case has been required to be stated or is pending before the High Court, tax shall be paid in accordance with the determination of the Commissioners who have been required to state the case:
Provided that, if the F121amount 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
F123b
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 F122... 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.
C284C165C206C223C230C235C261C257C384C438C43956AF343Appeals from the Special Commissioners.
1
If, in the case of any appeal to the Special Commissioners, the appellant or the inspector or other officer of the Board is dissatisfied in point of law—
a
with a decision in principle given under regulation 18 of the Special Commissioners Regulations;
b
with the decision finally determining the appealF605, other than a decision made in accordance with regulation 23(2)(b) of the Special Commissioners Regulations; or
c
with a decision under regulation 19 of those Regulations varying a decision such as is mentioned in paragraph (a) or (b) above or substituting for it a new decision,
he may appeal against that decision to the High Court.
2
A party to any appeal in England and Wales who under subsection (1) above has the right to appeal against any decision to the High Court may instead appeal directly to the Court of Appeal if—
a
all the parties to the appeal consent;
b
the Special Commissioners certify that the decision involves a point of law relating wholly or mainly to the construction of an enactment which was fully argued before them and fully considered by them; and
c
the leave of the Court of Appeal has been obtained.
3
Where a decision in principle or a decision finally determining an appeal is set aside or varied under regulation 19 of the Special Commissioners Regulations, an appeal against that decision under subsection (1) or (2) above that has not yet been determined shall be treated as withdrawn at the time the decision is set aside or varied.
4
The High Court or, as the case may be, the Court of Appeal shall hear and determine any question of law arising on an appeal under subsection (1) or (2) above and may reverse, affirm or vary the decision appealed against, or remit the matter to the Special Commissioners with the Court’s opinion on it, or make such other order in relation to the matter as the Court thinks fit.
5
Subject to subsection (7) below and to Part II of the Administration of Justice Act 1969 (appeal from High Court to House of Lords), an appeal shall lie to the Court of Appeal and thence to the House of Lords from the decision of the High Court on an appeal in England and Wales under subsection (1) above.
6
Subject to subsection (7) below, an appeal shall lie to the House of Lords from the decision of the Court of Appeal on an appeal under subsection (2) above.
7
An appeal shall not lie to the House of Lords from the Court of Appeal unless leave has been given under and in accordance with section 1 of the Administration of Justice (Appeals) Act 1934 .
8
Where the decision appealed against under subsection (1) or (2) above is a decision on an appeal against an assessment, then notwithstanding that the appeal under that subsection is pending, tax shall be paid in accordance with the determination of the Special Commissioners who made that decision.
9
If in such a case the amount charged by the assessment is altered by the order or judgment of the High Court or, as the case may be, the Court of Appeal, then—
a
if too much tax has been paid the amount overpaid shall be refunded with such interest, if any, as the High Court or, as the case may be, the Court of Appeal may allow; or
b
if too little tax has been charged, the amount undercharged shall be due and payable at the expiration of a period of thirty days beginning with the date on which the inspector issues to the other party a notice of the total amount payable in accordance with the order or judgment of the High Court or, as the case may be, the Court of Appeal.
10
All matters within the jurisdiction of the High Court under this section shall be assigned in Scotland to the Court of Session sitting as the Court of Exchequer (references in this section to the High Court being construed accordingly); and an appeal shall lie from the decision under this section of the Court of Session, as the Court of Exchequer in Scotland, to the House of Lords.
11
This section has effect in Northern Ireland subject to section 58 below.
C285C166C224C231C242C247C260C258C512C54056BC60F124 Regulations about practice and procedure.
C2551
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 F303specified 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.
F3042A
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.
C286C166C225C232C260C258C512C54056CC61F124Power of Special Commissioners to order costs.
1
Regulations made under section 56B above may include provision for—
a
the award by the Special Commissioners of the costs of, or incidental to, appeal hearings before them,
b
the recovery of costs so awarded, and
c
appeals against such awards.
2
Any provision made by virtue of subsection (1)(a) above shall provide that the Special Commissioners shall not award costs against a party to an appeal unless they consider that he has acted wholly unreasonably in connection with the hearing in question.
C287C166C260C258C512C54056DC62F124Power of Special Commissioners to publish reports of decisions.
1
Regulations made under section 56B above may include provision for the Special Commissioners to publish reports of such of their decisions as they consider appropriate.
2
Any provision made by virtue of subsection (1) above shall provide that any report published, other than a report of an appeal that was heard in public, shall be in a form that so far as possible prevents the identification of any person whose affairs are dealt with in the report.
3
No obligation of secrecy to which the Special Commissioners are subject (by virtue of this Act or otherwise) shall prevent their publishing reports of their decisions in accordance with any provision made by virtue of subsection (1) above.
Chargeable gains
57 Regulations about appeals.
1
The Board may make regulations—
a
as respects the conduct of appeals against assessments and decisions on claims under the F1251992 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,
C63d
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.
F1262
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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
F632b
provisions corresponding to section 563 of the Capital Allowances Act (determination of apportionment affecting tax liability of two or more persons), and
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.
F12857A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F12957B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northern Ireland
C64C385C441C44058 Proceedings in tax cases in Northern Ireland.
F1301
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3442
A case which is stated by the General Commissioners under regulation 22 of the General Commissioners Regulations in proceedings in Northern Ireland shall be a case for the opinion of the Court of Appeal in Northern Ireland, and the Taxes Acts shall have effect as if section 56 of this Act applied in relation to such proceedings—
a
with the substitution for references to the High Court of references to the Court of Appeal in Northern Ireland, and
b
with the omission of subsection (8) of that section,
and the procedure relating to the hearing and determination of the case by the Court of Appeal in Northern Ireland shall be that for the time being in force in Northern Ireland as respects cases stated by a county court in the exercise of its general jurisdiction.
F3452A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C197F3462B
The Taxes Acts shall have effect as if section 56A of this Act applied in relation to any appeal to the Special Commissioners constituting proceedings in Northern Ireland—
a
with the substitution for references to the High Court of references to the Court of Appeal in Northern Ireland, and
b
with the omission of subsections (2) and (5) to (7).
C1972C
An appeal shall lie to the House of Lords in accordance with section 42 of the Judicature (Northern Ireland) Act 1978 from a decision of the Court of Appeal in Northern Ireland on a case stated under regulation 22 of the General Commissioners Regulations or on an appeal under section 56A of this Act.
F1313
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), F601... 281(4) 343(10) or 783(9) of the principal Act (or the corresponding enactments repealed by that Act) F730... , F844section 186 of ITTOIA 2005, section 11 of or paragraph 22 of Schedule 7 to the Income and Corporation Taxes Act 1970 or F633section 563 of the Capital Allowances Act (determination of apportionment affecting tax liability of two or more persons) 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.
F1324
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F25659 Election for county court in Northern Ireland.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C213F305PART VA Payment of Tax
Pt. 5A inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 192 (with s. 198(1)); S.I. 1998/3173, art. 2
Pt. 5A modified (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 18 para. 39(2)(a) (with Sch. 18 para. 59(2)); S.I. 1998/3173, art. 2
F557Income tax and capital gains tax
S. 59A cross-heading inserted (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 19 para. 29(1); S.I. 1998/3173, art. 2
C146C154C449C51059A Payments on account of income tax.
1
F392Subject to subsection (9) below, this section applies to any person (the taxpayer) as regards a year of assessment if as regards the immediately preceding year—
a
he F393is 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;
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.
F3954A
If as regards the year immediately preceding the year of assessment—
a
the taxpayer is assessed to income tax under section 9 of this Act after the date on or before which either payment on account is required to be made, or
b
his assessment to income tax under that section is amended after that date,
then, subject to subsections (3) and (4) above F463and subsection (4B) below and to any subsequent application of this subsection, the amount of the payment on account shall be, and shall be deemed always to have been, equal to 50 per cent. of the relevant amount as determined on the basis of the assessment or, as the case may be, the assessment as amended.
F4644B
If as regards the year immediately preceding the year of assessment the taxpayer is assessed to income tax under section 29 of this Act in any amount, then, subject to subsections (3) and (4) above and to any subsequent application of this subsection, the amount of each payment on account shall be, and shall be deemed always to have been, the total of—
a
the amount which, immediately before the making of the assessment under section 29, is the amount of that payment, and
b
an amount equal to 50 per cent. of the amount in which he is assessed under that assessment;
and if that assessment is varied, the amount in which he is assessed under it shall be taken for the purposes of paragraph (b) above to be the amount of the assessment as varied.
5
Where the taxpayer makes a claim under subsection (3) or (4) above F396or subsection (4A) F465or (4B) above applies, there shall be made all such adjustments, whether by the repayment of amounts paid on accountF397, by the making of payments or further payments on account or otherwise, as may be required to give effect to the provisions of that subsection.
6
Where the taxpayer fraudulently or negligently makes any incorrect statement in connection with a claim under subsection (3) or (4) above, he shall be liable to a penalty not exceeding the difference between—
a
the amount which would have been payable on account if he had made a correct statement, and
b
the amount of the payment on account (if any) made by him.
7
The provisions of the Income Tax Acts as to the recovery of income tax shall apply to an amount falling to be paid on account of tax in the same manner as they apply to an amount of tax.
F3988
In this section, in relation to a year of assessment, any reference to the amount of any income tax deducted at source is a reference to the amount by which the aggregate of the following, namely—
a
any income tax deducted or treated as deducted from any income, or treated as paid on any income, in respect of the year, and
b
exceeds the aggregate of any amounts which, in the year, are deducted at source under F776PAYE regulations in respect of previous years.
9
If, at any time before the 31st January next following a year of assessment, an officer of the Board so directs—
a
this section shall not apply, and shall be deemed never to have applied, as regards that year to any person specified in the direction; and
b
there shall be made all such adjustments, whether by the repayment of amounts paid on account or otherwise, as may be required to give effect to the direction.
F46110
F745PAYE regulations may provide that, for the purpose of determining the amount of any such excess as is mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under F777PAYE regulations.
C148C311C352C450C45559BF306Payment of income tax and capital gains tax.
1
Subject to subsection (2) below, the difference between—
a
the amount of income tax and capital gains tax contained in a person’s self-assessment under section 9 of this Act for any year of assessment, and
b
the aggregate of any payments on account made by him in respect of that year (whether under section 59A of this Act or otherwise) and any income tax which in respect of that year has been deducted at source,
shall be payable by him or (as the case may be) repayable to him as mentioned in subsection (3) or (4) below F469but nothing in this subsection shall require the repayment of any income tax treated as deducted or paid by virtue of section F846... 246D(1) F846... F746of the principal ActF847, section 626 of ITEPA 2003 or section 399(2), 400(2), 414(1), 421(1) or 530(1) of ITTOIA 2005.
2
The following, namely—
a
any amount which, in the year of assessment, is deducted at source under F747PAYE regulations in respect of a previous year, and
b
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.
F4684A
Where in the case of a repayment the return on the basis of which the person’s self-assessment was made under section 9 of this Act is enquired into by an officer of the Board—
a
b
the officer may at any time before that day make the repayment, on a provisional basis, to such extent as he thinks fit.
F7015
An amount of tax which is payable or repayable as a result of the amendment or correction of a self-assessment under—
a
section 9ZA, 9ZB, 9C or 28A of this Act (amendment or correction of return under section 8 or 8A of this Act), or
b
section 12ABA(3)(a), 12ABB(6)(a), 28B(4)(a), 30B(2)(a), 33A(4)(a) or 50(9)(a) of this Act (amendment of partner’s return to give effect to amendment or correction of partnership return),
is payable (or repayable) on or before the day specified by the relevant provision of Schedule 3ZA to this Act.
F4675A
Where a determination under section 28C of this Act which has effect as a person’s self-assessment is superseded by his self-assessment under section 9 of this Act, any amount of tax which is payable or repayable by virtue of the supersession shall be payable or (as the case may be) repayable 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 F399otherwise than under section 9 of this Act shall, unless otherwise provided, be payable on the day following the end of the period of 30 days beginning with the day on which the notice of assessment is given.
7
In this section any reference to income tax deducted at source is a reference to income tax deducted or treated as deducted from any income or treated as paid on any income.
F4668
C144C312C33859CF307Surcharges on unpaid income tax and capital gains tax.
1
This section applies in relation to any income tax or capital gains tax which has become payable by a person (the taxpayer) in accordance with section 55 or 59B of this Act.
2
Where any of the tax remains unpaid on the day following the expiry of 28 days from the due date, the taxpayer shall be liable to a surcharge equal to 5 per cent. of the unpaid tax.
3
Where any of the tax remains unpaid on the day following the expiry of 6 months from the due date, the taxpayer shall be liable to a further surcharge equal to 5 per cent. of the unpaid tax.
4
Where the taxpayer has incurred a penalty under section 7, 93(5)F400, 95 or 95A of this Act, no part of the tax by reference to which that penalty was determined shall be regarded as unpaid for the purposes of subsection (2) or (3) above.
5
An officer of the Board may impose a surcharge under subsection (2) or (3) above; and notice of the imposition of such a surcharge—
a
shall be served on the taxpayer, and
b
shall state the day on which it is issued and the time within which an appeal against the imposition of the surcharge may be brought.
6
A surcharge imposed under subsection (2) or (3) above shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the end of the period of 30 days beginning with the day on which the surcharge is imposed until payment.
7
An appeal may be brought against the imposition of a surcharge under subsection (2) or (3) above within the period of 30 days beginning with the date on which the surcharge is imposed.
8
Subject to subsection (9) below, the provisions of this Act relating to appeals shall have effect in relation to an appeal under subsection (7) above as they have effect in relation to an appeal against an assessment to tax.
9
On an appeal under subsection (7) above section 50(6) to (8) of this Act shall not apply but the Commissioners may—
a
if it appears to them that, throughout the period of default, the taxpayer had a reasonable excuse for not paying the tax, set aside the imposition of the surcharge; or
b
if it does not so appear to them, confirm the imposition of the surcharge.
10
Inability to pay the tax shall not be regarded as a reasonable excuse for the purposes of subsection (9) above.
11
The Board may in their discretion—
a
mitigate any surcharge under subsection (2) or (3) above, or
b
stay or compound any proceedings for the recovery of any such surcharge,
and may also, after judgment, further mitigate or entirely remit the surcharge.
12
In this section—
“the due date”, in relation to any tax, means the date on which the tax becomes due and payable;
“the period of default”, in relation to any tax which remained unpaid after the due date, means the period beginning with that date and ending with the day before that on which the tax was paid.
F558Corporation tax
Ss. 59D, 59DA and cross-heading substituted for s. 59D (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 19 para. 29(2); S.I. 1998/3173, art. 2
59D General rule as to when corporation tax is due and payable.
1
Corporation tax for an accounting period is due and payable on the day following the expiry of nine months from the end of that period.
2
If the tax payable is then exceeded by the total of any relevant amounts previously paid (as stated in the relevant company tax return), the excess shall be repaid.
3
The tax payable means the amount computed in accordance with paragraph 8 of Schedule 18 to the Finance Act 1998.
4
Relevant amounts previously paid means any of the following, so far as relating to the accounting period in question—
a
any amount of corporation tax paid by the company and not repaid;
b
any corporation tax refund surrendered to the company by another group company;
c
any amount by which the sums available for set off under Step 4 of the calculation in paragraph 8 of Schedule 18 to the Finance Act 1998 (amounts set off against overall tax liability) exceeds the amount against which they may be set off under that provision;
d
any amount treated as corporation tax paid in respect of profits of the company F796by virtue of regulations under section 62 of the Finance Act 2004 (deductions from payments to sub-contractors).
5
This section has effect subject to section 59E.
59DA Claim for repayment in advance of liability being established.
1
This section applies where a company has paid an amount of corporation tax for an accounting period and the circumstances of the company change, so that the company has grounds for believing that the amount paid exceeds its probable tax liability although that liability has not been finally established.
2
The company may, by notice given to an officer of the Board, claim repayment of the excess.
No such claim may be made before the date which under section 826 of the principal Act (interest on overpaid tax), subject to regulations under section 826A of that Act, is the material date in relation to that tax.
3
The notice must state—
a
the amount which the company considers should be repaid, and
b
its grounds for believing that the amount paid exceeds its probable tax liability.
4
If the company has appealed against an amendment of an assessment, or an assessment, relating to the tax liability in question, and the appeal has not been finally determined, it may apply to the Commissioners to whom the appeal stands referred for a determination of the amount which should be repaid to the company pending determination of the liability.
5
Any claim under subsection (2) or application under subsection (4) shall be heard and determined in the same way as an appeal.
6
If the company makes an application under section 55(3) or (4) (application to postpone payment pending determination of appeal), that application may be combined with an application under subsection (4) above.
7
If a company makes a claim or application under this section before it has delivered a company tax return for the period in question, any deductions under F797section 61 of the Finance Act 2004 (deductions from payments to certain subcontractors) shall be disregarded in considering whether the amount paid by the company exceeds its probable tax liability.
8
This section has effect subject to section 59E.
C21559EF591Further provision as to when corporation tax is due and payable.
1
The Treasury may by regulations make provision, in relation to companies of such descriptions as may be prescribed, for or in connection with treating amounts of corporation tax for an accounting period as becoming due and payable on dates which fall on or before the date on which corporation tax for that period would become due and payable apart from this section.
2
Without prejudice to the generality of subsection (1) above, regulations under this section may make provision—
a
for or in connection with the determination of amounts of corporation tax which are treated as becoming due and payable under the regulations;
b
for or in connection with the determination of the dates on which amounts of corporation tax are treated as becoming due and payable under the regulations;
c
for or in connection with the making of payments to the Board in respect of amounts of corporation tax which are treated as becoming due and payable under the regulations;
d
for or in connection with the determination of the amount of any such payments as are mentioned in paragraph (c) above;
e
for or in connection with the determination of the dates on which any such payments as are mentioned in paragraph (c) above become due and payable;
f
for or in connection with any assumptions which are to be made for any purposes of the regulations;
g
for or in connection with the payment to the Board of interest on amounts of corporation tax which are treated as becoming due and payable under the regulations;
h
for or in connection with the repayment of amounts paid under the regulations;
i
for or in connection with the payment of interest by the Board on amounts paid or repaid under the regulations;
j
with respect to the furnishing of information to the Board;
k
with respect to the keeping, production or inspection of any books, documents or other records;
l
for or in connection with the imposition of such requirements as the Treasury think necessary or expedient for any purposes of the regulations;
m
for or in connection with appeals in relation to questions arising under the regulations.
3
Regulations under this section may make provision—
a
for amounts of corporation tax for an accounting period to be treated as becoming due and payable on dates which fall within the accounting period;
b
for payments in respect of any such amounts of corporation tax for an accounting period as are mentioned in paragraph (a) above to become due and payable on dates which fall within the accounting period.
4
Where interest is charged by virtue of regulations under this section on any amounts of corporation tax for an accounting period which are treated as becoming due and payable under the regulations, the company shall, in such circumstances as may be prescribed, be liable to a penalty not exceeding twice the amount of that interest.
5
Regulations under this section—
a
may make such modifications of any provisions of the Taxes Acts, or
b
may apply such provisions of the Taxes Acts,
as the Treasury think necessary or expedient for or in connection with giving effect to the provisions of this section.
6
Regulations under this section which apply any provisions of the Taxes Acts may apply those provisions either without modifications or with such modifications as the Treasury think necessary or expedient for or in connection with giving effect to the provisions of this section.
7
Regulations under this section—
a
may make different provision for different purposes, cases or circumstances;
b
may make different provision in relation to companies or accounting periods of different descriptions;
c
may make such supplementary, incidental, consequential or transitional provision as appears to the Treasury to be necessary or expedient.
8
Subject to subsection (9) below, regulations under this section may make provision in relation to accounting periods beginning before (as well as accounting periods beginning on or after) the date on which the regulations are made.
9
Regulations under this section may not make provision in relation to accounting periods ending before the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (corporation tax self-assessment).
10
In this section—
“modifications” includes amendments, additions and omissions;
“prescribed” means prescribed by regulations made under this section.
11
Any reference in this section to corporation tax includes a reference—
a
to any amount due from a company under section 419 of the principal Act (loans to participators etc) as if it were an amount of corporation tax chargeable on the company;
b
to any sum chargeable on a company under section 747(4)(a) of the principal Act (controlled foreign companies) as if it were an amount of corporation tax;
F719c
to any sum chargeable on a company under section 501A(1) of the principal Act (supplementary charge in respect of ring fence trades) as if it were an amount of corporation tax chargeable on the company.
59FBF1020CT payment plans for tax on certain transactions with EEA residents
Schedule 3ZC makes provision enabling a company that is liable to pay corporation tax arising in connection with certain transactions to defer payment of the tax by entering into a CT payment plan.
C78C204C262C313C353C413C390C393C391C402C406C407C410C425C424C426C461C503C513C514C535 PART VI COLLECTION AND RECOVERY
Pt. 6 applied by The Income Tax (Entertainers and Sportsmen) Regulations 1987 (S.I. 1987/530), reg. 11(3)
Pt. 6 modified (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 18 para. 39(2)(a) (with Sch. 18 para. 59(2)); S.I. 1998/3173, art. 2
Pt. 6: power to apply conferred (with effect in accordance with s. 114(2) of the amending Act) by Finance Act 1999 (c. 16), Sch. 17 para. 17(a)
Pt. 6 applied (with modifications) (E.W.) (1.4.2000) by Education (Student Loans) (Repayment) Regulations 2000 (S.I. 2000/944), regs. 1(1), 23, 45(4)
Pt. 6 applied (with modifications) (N.I.) (1.4.2000) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2000 (S.R. 2000/121), regs. 1, 23, 45(4)
Pt. 6 modified (1.8.2002 for specified purposes, 1.1.2003 for specified purposes, 6.4.2003 for remaining purposes) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 2 para. 7(1); S.I. 2002/1727, art. 2
Pt. 6 applied (with modifications) (8.12.2002) by The Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002 (S.I. 2002/2820), regs. 1, 8(4) (with reg. 8(5)(6))
Pt. 6 applied (with modifications) (N.I.) (8.12.2002) by The Employment (Northern Ireland) Order 2002 (S.I. 2002/2836), art. 1(2), Sch. I paras. 2(2), 4(3); S.R. 2002/356, art. 2(2), Sch. 1 Pt. 2
Pt. 6 applied (with modifications) (E.W.S.) (8.12.2002) by Employment Act 2002 (c. 22), s. 55(2), Sch. 1 paras. 2(2), 4(3); S.I. 2002/2866, art. 2(2), Sch. 1 Pt. 2
Pt. 6 applied (with modifications) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Working Tax Credit (Payment by Employers) Regulations 2002 (S.I. 2002/2172), regs. 1(1), 14(4)
Pt. 6 applied (with modifications) by The Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations 1994 (S.I. 1994/1882), reg. 7A(4) (as inserted (6.4.2003) by S.I. 2003/672, regs. 1(1), 6)
Pt. 6 applied (with modifications) by The Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations (Northern Ireland) 1994 (S.I. 1994/271), reg. 7A(4) (as inserted (6.4.2003) by S.I. 2003/672, regs. 1(1), 11)
Pt. 6 modified (6.4.2003 for specified purposes) by Tax Credits Act 2002 (c. 21), ss. 29(3), 61; S.I. 2002/1727, art. 2
Pt. 6 applied (6.4.2004) by The Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682), regs. 1, 84(2)
Pt. 6 applied (with modifications) (6.4.2004) by The Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682), regs. 1, 80(5)
Pt. 6 applied (6.4.2004) by The Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682), regs. 1, 204(7)
Pt. 6 modified (1.1.2005 for specified purposes, 6.4.2005 in so far as not already in force) by Child Trust Funds Act 2004 (c. 6), ss. 21(11), 27; S.I. 2004/2422, art. 2; S.I. 2004/3369, art. 2(1)(2)(4)
Pt. 6 applied (with modifications) (6.4.2007) by The Income Tax (Construction Industry Scheme) Regulations 2005 (S.I. 2005/2045), regs. 1, 16(2)(3) (with reg. 60, Sch. 1)
Pt. 6 applied (with modifications) by The Social Security (Contributions) Regulations 2001 (S.I. 2001/1004), Sch. 4 para. 29K (as inserted (6.8.2007) by S.I. 2007/2068, regs. 1, 2)
Pt. 6 applied (with modifications) by The Income Tax (Pay as You Earn) Regulations 2003 (S.I. 2003/2682), reg. 97K (as inserted (6.8.2007) by S.I. 2007/2069, regs. 1, 2)
Pt. 6 modified by Social Security Administration Act 1992 (c. 5), Sch. 3A para. 5 (as inserted (21.7.2008 for specified purposes, 1.1.2009 in so far as not already in force) by Health and Social Care Act 2008 (c. 14), ss. 133(2), 170; S.I. 2008/3137, art. 2)
C69C70C39060 Issue of demand notes and receipts.
C2641
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.
C2642
On payment of the tax, the collector shall if so requested give a receipt.
Distraint and poinding
C71C175C26561 Distraint by collectors.
1
If a person neglects or refuses to pay the sum charged, upon demand made by the collector, F133the 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, F134a 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 F135in default.
5
If the person F136in default does not pay the sum due, together with the costs and charges F137. . . , the distress shall be appraised by F138one 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.
F139. . . 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.
F1406
The Treasury may by regulations make provision with respect to—
a
the fees chargeable on or in connection with the levying of distress, and
b
the costs and charges recoverable where distress has been levied;
and any such regulations shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.
62 Priority of claim for tax.
1
F141If 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, F141the 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 F141such sums as have fallen due at or before the date of seizure.
F1421A
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 F749taxable earnings (as defined by section 10 of ITEPA 2003) 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 F750PAYE regulations 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 F798section 61 of the Finance Act 2004 (sub-contractors in the construction industry).
2
F143If 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 F143may proceed to the sale thereof, as prescribed by this Act, for the purpose of obtaining payment of the whole of F143those 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.
F1443
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C176C26663F147Recovery of tax in Scotland
P11
Subject to subsection (3) below, in Scotland, where any tax is due and has not been paid, the sheriff, on an application by the collector accompanied by a certificate by the collector—
a
stating that none of the persons specified in the application has paid the tax due by him;
b
stating that the collector has demanded payment under section 60 of this Act from each such person of the amount due by him;
c
stating that 14 days have elapsed since the date of such demand without payment of the said amount; and
d
specifying the amount due and unpaid by each such person,
shall grant a summary warrant in a form prescribed by Act of Sederunt authorising the recovery, by way of the diligences mentioned in subsection (2) below, of the amount remaining due and unpaid.
2
The diligences referred to in subsection (1) above are—
F722a
an attachment;
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 [F145insofar 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 F751PAYE regulations; or
b
deductions required to be made under F799section 61 of the Finance Act 2004 (sub-contractors in the construction industry) by any person specified in the application.]
F1464
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.]
C177C26763AF147 Sheriff officer’s fees and outlays.
1
Subject to subsection (2) below and without prejudice to F723section 39(1) of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17) (expenses of attachment), the sheriff officer’s fees, together with the outlays necessarily incurred by him, in connection with the execution of a summary warrant shall be chargeable against the debtor.
2
No fee shall be chargeable by the sheriff officer against the debtor for collecting, and accounting to the collector for, sums paid to him by the debtor in respect of the amount owing.
64Priority of claim for tax in Scotland.
1
F148If 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, F149the 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 F149such sums as have fallen due at or before the date of poinding or, as the case may be, other diligence or assignation.
F1501A
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 F752taxable earnings (as defined by section 10 of ITEPA 2003) 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 F753PAYE regulations 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 F800section 61 of the Finance Act 2004 (sub-contractors in the construction industry).
2
F151If 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 F151proceedings 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.
F1523
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Court proceedings
P2C268C40365 Magistrates’ courts.
1
F559Any amount due and payable by way of income tax, capital gains tax or corporation tax which does not exceed £2,000 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 F560... 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 F153in proceedings under Article 62 of the Magistrates’ Courts (Northern Ireland) Order 1981.
P3F1545
The Treasury may by order made by statutory instrument increase the F561sum 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.
C73C72C178C269C40366 County courts.
1
F155Tax due and payable F702... 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 F1006... .
F10072
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1562A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1573
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 F158(Northern Ireland) Order 1980 (general civil jurisdiction) shall apply for the purposes of this section in Northern Ireland.
C178C270C40367 Inferior courts in Scotland.
1
F4021A
An officer of the Board who is authorised by the Board to do so may address the court in any proceedings under this section.
2
Sections 65 and 66 above shall not apply in Scotland.
C74C178C27168 High Court, etc.
1
Any tax may be sued for and recovered from the person charged therewith in the High Court as a debt due to the Crown, or by any other means whereby any debt of record or otherwise due to the Crown can, or may at any time, be sued for and recovered, as well as by the other means specially provided by this Act for levying the tax.
2
All matters within the jurisdiction of the High Court under this section shall be assigned in Scotland to the Court of Session sitting as the Court of Exchequer .
Supplemental
C75C76C128C272C322C348F70469 Recovery of penalty, surcharge or interest
1
This section applies to—
a
penalties imposed under Part 2, 5A or 10 of this Act or Schedule 18 to the Finance Act 1998;
b
surcharges imposed under Part 5A of this Act; and
c
interest charged under any provision of this Act (or recoverable as if it were interest so charged).
2
An amount by way of penalty, surcharge or interest to which this section applies shall be treated for the purposes of the following provisions as if it were an amount of tax.
3
Those provisions are—
a
sections 61, 63 and 65 to 68 of this Act;
b
section 35(2)(g)(i) of the Crown Proceedings Act 1947 (rules of court: restriction of set-off or counterclaim where proceedings, or set-off or counterclaim, relate to tax) and any rules of court imposing any such restriction;
c
section 35(2)(b) of that Act as set out in section 50 of that Act (which imposes corresponding restrictions in Scotland).
C77C7770 Evidence.
F10091
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F10082
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1603
F1018A 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 F754earnings or amounts treated as earnings 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 F754earnings or amounts treated as earnings therein stated to have been paid to the person charged have in fact been so paid.
F2575
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7555
In subsection (4) “earnings or amounts treated as earnings” means earnings or amounts treated as earnings which constitute employment income (see section 7(2)(a) or (b) of ITEPA 2003).
C17970AF308Payments by cheque.
1
For the purposes of this Act and the provisions mentioned in subsection (2) below, where—
a
any payment to an officer of the Board or the Board is made by cheque, and
b
the cheque is paid on its first presentation to the banker on whom it is drawn,
the payment shall be treated as made on the day on which the cheque was received by the officer or the Board.
2
The provisions are—
a
sections 824 to 826 of the principal Act (repayment supplements and interest on tax overpaid); and
b
section 283 of the 1992 Act (repayment supplements).
F9733
This section is subject to regulations under section 95(1) of the Finance Act 2007 (payment by cheque).
PART VII PERSONS CHARGEABLE IN A REPRESENTATIVE CAPACITY, ETC.
Income Tax
71C79 Bodies of persons.
1
Subject to F161sections 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 .
C80C314C33972 Trustees, guardians, etc., of incapacitated persons.
1
The trustee, guardian, tutor, curator or committee of any incapacitated person having the direction, control or management of the property or concern of any such person, whether such person resides in the United Kingdom or not, shall be assessable and chargeable to income tax in like manner and to the like amount as that person would be assessed and charged if he were not an incapacitated person.
2
The person who is chargeable in respect of an incapacitated person shall be answerable for all matters required to be done under the Income Tax Acts for the purpose of assessment and payment of income tax.
3
Any person who has been charged under the Income Tax Acts in respect of any incapacitated person as aforesaid may retain, out of money coming into his hands on behalf of any such person, so much thereof from time to time as is sufficient to pay the tax charged, and shall be indemnified for all such payments made in pursuance of the Income Tax Acts.
73 Further provision as to infants.
If a person chargeable to income tax is an infant, then his F162parent , guardian or tutorF162parent 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.
C81C82C315C34074 Personal representatives.
1
If a person chargeable to income tax dies, the executor or administrator of the person deceased shall be liable for the tax chargeable on such deceased person, and may deduct any payments made under this section out of the assets and effects of the person deceased .
2
On neglect or refusal of payment, any person liable under this section may be proceeded against in like manner as any other defaulter .
C83C188C315C341C39775 Receivers appointed by a court.
1
A receiver appointed by any court in the United Kingdom which has the direction and control of any property in respect of which income tax is charged in accordance with the provisions of the Income Tax Acts shall be assessable and chargeable with the tax in like manner and to the like amount as would be assessed and charged if the property were not under the direction and control of the court.
2
Every such receiver shall be answerable for doing all matters and things required to be done under the Income Tax Acts for the purpose of assessment and payment of income tax .
C315C34276 Protection for certain trustees, agents and receivers.
1
A trustee who has authorised the receipt of profits arising from trust property by, or by the agent of, the person entitled thereto shall not, if—
a
that person or agent actually received the profits under that authority, and
b
the trustee makes a return, as required by section 13 of this Act, of the name, address and profits of that person,
be required to do any other act for the purpose of the assessment of that person to income tax.
2
An agent or receiver of any person resident in the United Kingdom, other than an incapacitated person, shall not, if he makes a return, as required by section 13 of this Act, of the name, address and profits of that person, be required to do any other act for the purpose of the assessment of that person to income tax.
Capital gains tax
C39877 Application of Part VII to capital gains tax.
1
This Part of this Act (except section 76 above) shall apply in relation to capital gains tax as it applies in relation to income tax F163. . . , 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.
F16477A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART VIII CHARGES ON NON-RESIDENTS
Income tax
F41278 Method of charging non-residents.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F41279 Profits from branch or agency.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F41280 Charge on percentage of turnover.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F41281 Taxation on basis of merchanting profit.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F41282 Savings.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F41283 Responsibilities and indemnification of persons in whose name a non-resident person is chargeable.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital gains tax
F41284 Gains from branch or agency.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporation tax
F41285 Application of Part VIII to corporation tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F16585A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C91C90C160C214 PART IX INTEREST ON OVERDUE TAX
Pt. IX modified by The Income Tax (Entertainers and Sportsmen) Regulations 1987 (S.I. 1987/530), reg. 11(3)
Pt. IX applied (27.7.1993 with effect in relation to the year 1993-94 and subsequent years of assessment) by Finance Act 1993 (c. 34), s. 122(2)(3)
Pt. 9 applied by Taxation of Chargeable Gains Act 1992 (c. 12), s. 281(5)(a) (as substituted (with effect in accordance with Sch. 18 para. 17 of the amending Act) by Finance Act 1996 (c. 8), Sch. 18 paras. 15(2), 17)
Pt. 9 modified (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 18 para. 39(2)(a) (with Sch. 18 para. 59(2)); S.I. 1998/3173, art. 2
C131C216C84C158C159C236C318C321C494C50886F403 Interest on overdue income tax and capital gains tax.
1
The following, namely—
a
any amount on account of income tax which becomes due and payable in accordance with section 59A(2) of this Act, and
b
any income tax or capital gains tax which becomes due and payable in accordance with section 55 or 59B of this Act,
shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the relevant date until payment.
2
For the purposes of subsection (1)(a) above the relevant date is whichever of the dates mentioned in section 59A(2) of this Act is applicable; and for the purposes of subsection (1)(b) above the relevant date is—
a
in any such case as is mentioned in subsection (3) of section 59B of this Act, the last day of the period of three months mentioned in that subsection; and
b
in any other case, the date mentioned in subsection (4) of that section.
3
Subsection (1) above applies even if the relevant date is a non-business day within the meaning of F470section 92 of the Bills of Exchange Act 1882.
4
Subsection (5) below applies where as regards a year of assessment—
a
any person makes a claim under subsection (3) or (4) of section 59A of this Act in respect of the amounts (the section 59A amounts) payable by him in accordance with subsection (2) of that section, and
5
Interest shall be payable under this section as if each of the section 59A amounts had been equal to—
a
the aggregate of that amount and 50 per cent. of the section 59B amount, or
b
the amount which would have been payable in accordance with subsection (2) of section 59A of this Act if the claim under subsection (3) or (4) of that section had not been made,
whichever is the less.
6
In determining for the purposes of subsections (4) and (5) above what amount (if any) is payable by any person in accordance with section 59B(3), (4) or (5) of this Act F473or, in respect of income tax assessed under section 29 of this Act, in accordance with section 59B(6) of this Act—
a
it shall be assumed that both of the section 59A amounts have been paid, and
b
no account shall be taken of any amount which has been paid on account otherwise than under section 59A(2) of this Act or is payable by way of capital gains tax.
7
Subsection (8) below applies where as regards any person and a year of assessment—
a
amounts (the section 59A amounts) become payable by him in accordance with section 59A(2) of this Act, and
b
an amount (the section 59B amount) becomes repayable to him in accordance with section 59B (3), (4) or (5) of this Act.
8
So much of any interest payable under this section on either of the section 59A amounts as is not attributable to the amount by which that amount exceeds 50 per cent. of the section 59B amount shall be remitted.
9
In determining for the purposes of subsections (7) and (8) above what amount (if any) is repayable to any person in accordance with section 59B(3), (4) or (5) of this Act, no account shall be taken of any amount which has been paid on account otherwise than under section 59A(2) of this Act or is payable by way of capital gains tax.
F16686A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C501C52687F916Interest on overdue income tax deducted at source
1
Income tax which is assessable under Chapter 15 of Part 15 of ITA 2007 carries interest at the rate applicable under section 178 of the Finance Act 1989 from the date when it was due under section 951 of ITA 2007 until payment.
2
Subsection (1) applies—
a
whether or not an assessment is made, and
b
whether or not income tax which is assessed has been paid when the assessment is made.
3
Subsection (1) applies even if the date when the income tax should have been paid is a non-business day as defined by section 92 of the Bills of Exchange Act 1882.
4
Subsection (5) applies to any income tax which—
a
was payable under Chapter 15 of Part 15 of ITA 2007 (collection: deposit-takers, building societies and certain companies) in respect of payments within section 946 of that Act made in a return period,
b
was not paid on the date when it was due under section 951 of that Act, and
c
has subsequently been discharged or repaid under section 953 of that Act because the person who made the payments received payments on which it suffered income tax by deduction in a later return period.
5
The income tax carries interest under subsection (1) from the date when it was due under section 951 of ITA 2007 until the earliest of—
a
the date when the income tax was paid,
b
the date when the person delivered a return for the later return period, and
c
the expiry of 14 days after the end of that period,
but subsection (1) does not otherwise apply to the income tax.
6
In this section “return period” means a period for which a return is required to be made under Chapter 15 of Part 15 of ITA 2007.
C132C133C207C217C36187AF167Interest on overdue corporation tax etc.
1
2
Subsection (1) above applies even if the date when the tax becomes due and payable (as mentioned in that subsection) is a non-business day within the meaning of section 92 of the M1Bills of Exchange Act 1882.
3
In relation to corporation tax assessed F623or treated as assessed by virtue of section F169346(2) or 347(1) of the principal Act, F170137(4), 139(7) F624or 190F626... of the 1992 Act F625... F602paragraph 75A(2) of Schedule 18 to the Finance Act 1998F720, Schedule 28 to the Finance Act 2000 or paragraph 69 of Schedule 29 to the Finance Act 2002 (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.
F5624
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1714A
In a case where—
a
there is for an accounting period of a company (“the later period”) F474a non-trading deficit on the company’s loan relationships,
b
as a result of a claim under F475section 83(2)(c) of the Finance Act 1996 or paragraph 4(3) of Schedule 11 to that Act the whole or part of the deficit for the later period is set off against profits of an earlier accounting period (“the earlier period”), and
F353c
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,
F354then, 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 F565as mentioned in subsection (8) below.
F5634B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
A sum assessed on a company by such an assessment as is referred to in F172section 252(5) of the principal Act (recovery of payment of tax credit or interest on such a payment) shall carry interest at the F173rate 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.
F1746
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 F1010(whether under section 393A(1) or 393B(3)) 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 F568as mentioned in subsection (8) below.
F5647
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5668
In subsections (4), (4A) and (6) above, any reference to the date on which corporation tax for an accounting period became, or would have become, due and payable shall be construed on the basis that corporation tax for an accounting period becomes due and payable on the day following the expiry of nine months from the end of the accounting period.
F5679
The power conferred by section 59E of this Act (alteration of date on which corporation tax becomes due and payable) does not include power to make provision in relation to subsection (4), (4A), (6) or (8) above the effect of which would be to change the meaning of references in subsection (4), (4A) or (6) above to the date on which corporation tax for an accounting period became, or would have become, due and payable (as mentioned in subsection (8) above).
F47688 Interest on tax recovered to make good loss due to taxpayer’s fault.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F47788A Determinations under section 88.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F25889 The prescribed rate of interest.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C85C86C87C316C34390 Disallowance of relief for interest on tax.
F5711
Interest payable under this Part of this Act
F571a
shall be paid without any deduction of income tax and
F5702
Paragraph (b) of subsection (1) above does not apply in relation to interest under section 87 or 87A of this Act payable by a company within the charge to corporation tax.
C343C31691 Effect on interest of reliefs.
1
Where any amount of interest is payable under section 86 F478... 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 F479that section in relation to the assessment, as are necessary to secure that the total sum, if any, paid or payable under F479that section in relation to the assessment is the same as it would have been if the tax discharged had never been charged.
F1751A
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
2
F259Subject to subsection (2A) below Where relief from tax F177... 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.
F1782A
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 F17910 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—
F180a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
affecting tax charged by any assessment to income tax made under Schedule A or Schedule D if either—
F180i
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 F181or
C884
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 .
F18291A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
92 Remission in certain cases of interest on tax in arrear by reason of exchange restrictions.
C891
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.
C892
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.
C893
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.
C107C108C203C365C511 PART X PENALTIES, ETC.
Part X (ss. 93-107) applied (with modifications) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 16(1)(b), 177(4), Sch. 2
Part X (ss 93-107) applied (27.7.1993 with effect in relation to the year 1993-94 and subsequent years of assessment) by 1993 c. 34, s. 122(2)(3)
Pt. 10 modified (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), s. 117(1)(b), Sch. 18; S.I. 1998/3173, art. 2
Pt. 10 power to apply conferred (N.I.) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), Sch. 1 para. 7B(5A) (as inserted (28.7.2000) by Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 80(4), 86 (with s. 83(6)))
Pt. 10 applied (with modifications) (E.W.S.) (1.5.2007) by The National Insurance Contributions (Application of Part 7 of the Finance Act 2004) Regulations 2007 (S.I. 2007/785), regs. 1, 15
C344C317F31093 Failure to make return for income tax and capital gains tax.
1
This section applies where—
a
any person (the taxpayer) has been required by a notice served under or for the purposes of section 8 or 8A of this Act (or either of those sections as extended by section 12 of this Act) to deliver any return, and
b
he fails to comply with the notice.
2
The taxpayer shall be liable to a penalty which shall be £100.
3
If, on an application made to them by an officer of the Board, the General or Special Commissioners so direct, the taxpayer shall be liable to a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which he is notified of the direction (but excluding any day for which a penalty under this subsection has already been imposed).
4
If—
a
the failure by the taxpayer to comply with the notice continues after the end of the period of six months beginning with the filing date, and
b
no application is made under subsection (3) above before the end of that period,
the taxpayer shall be liable to a further penalty which shall be £100.
5
Without prejudice to any penalties under subsections (2) to (4) above, if—
a
the failure by the taxpayer to comply with the notice continues after the anniversary of the filing date, and
b
there would have been a liability to tax shown in the return,
the taxpayer shall be liable to a penalty of an amount not exceeding the liability to tax which would have been so shown.
6
No penalty shall be imposed under subsection (3) above in respect of a failure at any time after the failure has been remedied.
7
If the taxpayer proves that the liability to tax shown in the return would not have exceeded a particular amount, the penalty under subsection (2) above, together with any penalty under subsection (4) above, shall not exceed that amount.
8
On an appeal against the determination under section 100 of this Act of a penalty under subsection (2) or (4) above, neither section 50(6) to (8) nor section 100B(2) of this Act shall apply but the Commissioners may—
a
if it appears to them that, throughout the period of default, the taxpayer had a reasonable excuse for not delivering the return, set the determination aside; or
b
if it does not so appear to them, confirm the determination.
9
References in this section to a liability to tax which would have been shown in the return are references to an amount which, if a proper return had been delivered on the filing date, would have been payable by the taxpayer under section 59B of this Act for the year of assessment.
10
In this section—
F974“the filing date” in respect of a return for a year of assessment (Year 1) means—
- a
31st January of Year 2, or
- b
if the notice under section 8 or 8A was given after 31st October of Year 2, the last day of the period of three months beginning with the day on which the notice is given.
- a
“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.
93AF311Failure to make partnership return.
1
This section applies where, in the case of a trade, profession or business carried on by two or more persons in partnership—
a
a partner (the representative partner) has been required by a notice served under or for the purposes of section 12AA(2) or (3) of this Act to deliver any return, and
b
he F480or a successor of his 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 F481or a successor of his 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 F481or a successor of his 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 F482or a successor of his;
b
any appeal by that partner F483or successor 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 F483or successor 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, F489the person for the time being required to deliver the return (whether the representative partner or a successor of his) had a reasonable excuse for not delivering it, set the determination aside; or
b
if it does not so appear to them, confirm the determination.
F9757A
For the purposes of this section the filing date for a year of assessment (Year 1) in the case of a partnership which includes one or more individuals is—
a
31st January of Year 2, or
b
if the notice under section 12AA was given after 31st October of Year 2, the last day of the period of three months beginning with the date of the notice.
7B
For the purposes of this section the filing date for a year of assessment (Year 1) in the case of a partnership which includes one or more companies is—
a
the first anniversary of the period for which the return is required, or
b
where the notice is given more than nine months after the end of the period for which the return is required, the last day of the period of three months beginning with the date of the notice.
8
In this section—
F976. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“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.
F57294 Failure to make return for corporation tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F985C544C54395 Incorrect return or accounts for income tax or capital gains tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F98695A Incorrect partnership return or accounts.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F57396Incorrect return or accounts for corporation tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F987C541C54297 Incorrect return or accounts: supplemental.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
97AAF312Failure to produce documents under section 19A.
1
Where a person fails to comply with a notice or requirement under F484section 19A(2), (2A) or (3) of this Act F575or paragraph 6(2) or (3A)(b) of Schedule 1A to 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.
97AF183Two or more tax-geared penalties in respect of the same tax.
Where two or more penalties—
a
are incurred by any person and fall to be determined by reference to any income tax or capital gains tax with which he is chargeable for a year of assessment; F574...
F574b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.
C95C92C93C94C161C226C324C291C474C527C52498 Special returns, etc.
C1721
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 F185subsections (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).
C1732
F186Subject 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 F186£3000.
F1873
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.
F7094A
If—
a
a failure to comply with F917Chapter 15 or 16 of Part 15 of ITA 2007 arises from a person’s failure to deliver an account, or show the amount, of a payment, and
subsection (1) above shall have effect as if for “£300” there were substituted “£3,000” and as if for “£60” there were substituted “£600”.
4B
A payment is within this subsection if—
F918a
the payment is made by a company, local authority or qualifying partnership (within the meaning of section 932 of ITA 2007) without an amount representing income tax on the payment being deducted from it,
b
at the time the payment is made, the company, authority or partnership—
i
does not believe that the payment is an excepted payment for the purposes of Chapter 11 of Part 15 of ITA 2007 (payments between companies etc: exception from duties to deduct), or
ii
if it does so believe, cannot reasonably do so,
c
the payment is one from which tax is deductible under Part 15 of ITA 2007 unless the company, authority or partnership reasonably believes that it is an excepted payment for the purposes of Chapter 11 of that Part, and
d
the payment is not an excepted payment at the time the payment is made.
F9194C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F9204D
A payment is within this subsection if—
a
it is a payment from which a sum representing income tax must be deducted under Chapter 6 (deduction from annual payments and patent royalties) or 7 (deduction from other payments connected with intellectual property) of Part 15 of ITA 2007,
b
a company, purporting to rely on section 911 of that Act (double taxation arrangements: deduction at treaty rate), deducts less from the payment than required by those Chapters, and
c
at the time the payment is made the payee (as defined in section 913 of that Act) is not entitled to relief under double taxation arrangements (as defined in section 1023 of that Act) and the company—
i
does not believe that it is entitled to such relief, or
ii
if it does so believe, cannot reasonably do so.
F9214DA
A payment is within this subsection if—
a
it is a payment from which a sum representing income tax must be deducted under Chapter 6 (deduction from annual payments and patent royalties) or 7 (deduction from other payments connected with intellectual property) of Part 15 of ITA 2007,
b
a company, purporting to rely on section 914 of ITA 2007 (EU companies: discretion to make payment gross), makes the payment without deducting a sum representing income tax, and
c
at the time the payment is made the payment is not exempt from income tax as a result of section 758 of ITTOIA 2005 (exemption for certain interest and royalty payments) and the company—
i
does not believe that the payment is so exempt, or
ii
if it does so believe, cannot reasonably do so.
F7814E
A payment is within this subsection if—
a
it is an interest distribution made to a unit holder by the trustees of an authorised unit trust,
b
the trustees, in purported reliance on the reputable intermediary condition being fulfilled with respect to the unit holder, do not comply with the obligation under F922section 874 of ITA 2007 to make a deduction from the interest distribution,
c
that obligation would apply if that condition were not so fulfilled, and
d
the trustees did not believe that the unit holder was not ordinarily resident in the United Kingdom or could not reasonably have so believed (so that that condition was not so fulfilled).
Expressions used in this subsection have the same meaning as in F865regulations made under section 17(3) of the Finance (No. 2) Act 2005 (as at 1st April 2006, see the Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964)).
F1885
In the case of a failure to comply with section 765A(2)(a) or (b) of the principal Act, subsection (1) above shall have effect as if for “£300” there were substituted “£3000” and as if for “£60” there were substituted “£600”.
1. | 2. |
---|---|
F189Part III of this Act, . . . | In the principal Act— |
F603regulations under section 59E of this Act; | F579. . . |
F347. . . | F936. . . |
In the principal Act— | F578. . . |
F190section 38(5); | F627. . . |
F190section 42; | F627. . . |
F923. . . | F763. . . |
F627. . . | F764. . . |
F627. . . | F191... |
F503. . . | F580. . . |
F757. . . | F503. . . |
section 217; | F765. . . |
section 226(3) and (4); | F766. . . |
section 234(7)(b), (8) and (9); | section 216; |
F315section 246H; | section 226(1) and (2); |
section 250(6) and (7); | section 234(5), (6) and (7)(a); |
section 272(7); | section 250(1) to (5); |
section 310(4) and (5); | section 310(1), (2)F705, (2A) and (3); |
F850. . . | F767. . . |
regulations under section 333; | F853. . . |
F977. . . | Regulations under section 333; |
F977. . . | |
F866. . . | F937. . . |
F867. . . | section 375(5); |
F924. . . | |
F925. . . | F487regulations under section 444BB; |
F192. . . | F487regulations under section 444BD; |
F926. . . | F938. . . |
F927. . . | F939. . . |
F928. . . | F940. . . |
F929. . . | F941. . . |
F803. . . | F707section 552; |
section 588(7); | F708regulations under section 552ZA(6); |
F876. . . | F942. . . |
F876. . . | F804. . . |
F876. . . | section 577(4); |
F876. . . | section 588(6); |
F876. . . | F876. . . |
F876. . . | F876. . . |
F630. . . | F876. . . |
F851. . . | F876. . . |
section 700(4); | F876. . . |
section 708; | F876. . . |
section 728; | F193[section 765A(2)(a);] |
F488. . . | F581. . . |
section 730(8); | F486. . . |
F504. . . | F577. . . |
F930. . . | F577. . . |
section 755; | regulations under paragraph 7 of Schedule 14; |
F193[section 765A(2)(b) ;] | Schedule 15, paragraph 14(4); |
F576section 767C; | F943. . . |
section 768(9); | F944. . . |
F581. . . | Schedule 22, paragraph 2. |
section 774(5); | Regulations under section F194151 of the 1992 Act. |
section 778; | F635Sections F1012...F70645B(5) and (6),F72145G(4) and (5)F785, 45I(5) and (6), 118 to 120, 145(2) and (3) and 203 of the Capital Allowances Act |
section 815; | Regulations 16 and 17 of the Income Tax (Interest Relief) Regulations 1982. |
F485. . . | Paragraph 15(3) of Schedule 14 to the Finance Act 1984. |
Schedule 5, paragraph 10; | F195. . . |
F196Schedule 9, [paragraph 6]; | F768. . . |
Schedule 15 paragraph 14(5); | F197[Regulations under section 57 of the Finance Act 1989.] |
F931. . . | F199. . . |
F198. . . | F200Regulations under section 33 of the Finance Act 1991. |
Schedule 22, paragraph 4. | F316. . . |
F932. . . | F209Section 28(2) of the Finance (No.2) Act 1992. |
Section 32 of the Finance Act 1973. | F875paragraph 12 of Schedule 4ZA to the 1992 Act |
Paragraph 2 of Schedule 15 to the Finance Act 1973. | F314Paragraphs 2 to 6 of Schedule 5A to the 1992 Act. |
Regulations under section F201151 of the 1992 Act. | F404regulations under section 73 of the Finance Act 1995; |
Paragraph F2022(9) of Schedule 1 to the 1992 Act. | F855. . . |
F634. . . | F855. . . |
Section F20398 of the 1992 Act. | F604Section 86(4) of the Finance Act 1999. |
Paragraph 15(1) of Schedule 14 to the Finance Act 1984. | F769. . . |
Paragraph 6(1) of Schedule 22 to the Finance Act 1985. | F760paragraph 64 or 65 of Schedule 15 to the Finance Act 2000 |
F204Section 79(6) of the 1992 Act. | F628Paragraph 93(2) of Schedule 22 to the Finance Act 2000 |
F205[Regulations under section 57 of the Finance Act 1989 ] | F629Paragraph 129 of Schedule 22 to the Finance Act 2000 |
F206[Section 73 of the Finance Act 1989 ] | F714paragraph 6 of Schedule 34 to the Finance Act 2002 |
F197[Paragraphs 2 to 4 of Schedule 12 to the Finance Act 1989 ] | F716paragraph 7 of Schedule 35 to the Finance Act 2002 |
F945. . . | |
F200Regulations under section 33 of the Finance Act 1991 | F724paragraph 42 of Schedule 16 to the Finance Act 2002 |
F807Section 169G(2) of the 1992 Act. | F783Section 421J(3) of ITEPA 2003. |
F784Paragraph 1(7) of Schedule 1 to the 1992 Act. | F770Regulations under section 589 of ITEPA 2003. |
F874paragraph 14 of Schedule 4ZA to the 1992 Act | F770Regulations under section 715 of ITEPA 2003. |
F770PAYE regulations. | |
F933. . . | F770Paragraph 52 of Schedule 5 to ITEPA 2003. |
F758. . . | F801section 55 of the Finance Act 2004 |
F761paragraph 66 of Schedule 15 to the Finance Act 2000 | F806Regulations under section 65(2), 69(1), 70(1)(a) or (c) or 71 of the Finance Act 2004. |
F759. . . | F877regulations under section 251(1)(a) or (4) of the Finance Act 2004; |
F715paragraph 10 of Schedule 34 to the Finance Act 2002 | F854Section 75(4) of ITTOIA 2005. |
F717paragraph 11 of Schedule 35 to the Finance Act 2002 | F854Regulations under Chapter 3 of Part 6 of ITTOIA 2005. |
F934. . . | F861section 37(3) of the Finance Act 2005; |
F782Section 421J(4) of ITEPA 2003. | F861section 37(6) of the Finance Act 2005; |
F762Regulations under section 589 of ITEPA 2003. | F880Section 106 of FA 2006 as modified by Schedule 17 to that Act. |
F762Regulations under section 715 of ITEPA 2003. | F880Section 116 of FA 2006. |
F762Paragraph 93 of Schedule 2 to ITEPA 2003. | F880Regulations under section 116 of FA 2006. |
F762Paragraph 45 of Schedule 3 to ITEPA 2003. | F946. . . |
F762Paragraph 33 of Schedule 4 to ITEPA 2003. | F880Section 130 of FA 2006. |
F762Paragraph 51 of Schedule 5 to ITEPA 2003. | F947sections 240 and 241 of ITA 2007; |
F805Regulations under section 70(3) of the Finance Act 2004. | F947section 271(1) of ITA 2007; |
F852Section 75(5) of ITTOIA 2005. | F947regulations under Chapter 5 of Part 6 of ITA 2007; |
F852Section 128 of ITTOIA 2005 | F947section 373 of ITA 2007; |
F852Section 305 of ITTOIA 2005. | F947regulations under section 871(1) of ITA 2007; |
F852Section 647 of ITTOIA 2005. | F947Chapter 15 of Part 15 of ITA 2007; |
F852Regulations under Chapter 3 of Part 6 of ITTOIA 2005. | F947Chapter 16 of Part 15 of ITA 2007; |
F860section 40(1) of the Finance Act 2005 | F947regulations under section 969(1) of ITA 2007; |
F868regulations under section 17(3) of the Finance (No. 2) Act 2005 | F947regulations under section 971(1) of ITA 2007; |
F935sections 242 and 243(1) and (2) of ITA 2007; | F947regulations under section 973(1) of ITA 2007. |
F935section 271(2) of ITA 2007; | |
F935regulations under Chapter 5 of Part 6 of ITA 2007; | |
F935regulations under section 330(5) of ITA 2007; | |
F935section 703 of ITA 2007; | |
F935section 748(1) and (2) of ITA 2007; | |
F935section 771 of ITA 2007; | |
F935section 788 of ITA 2007; | |
F935section 862 of ITA 2007; | |
F935regulations under section 871(1) of ITA 2007; | |
F935regulations under section 969(1) of ITA 2007; | |
F935regulations under section 971(1) of ITA 2007; | |
F935paragraph 155(5) of Schedule 2 to ITA 2007 |
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
F948References in this Table to sections 240, 241, 242 and 243(1) and (2) of ITA 2007 are to provisions that apply only in relation to shares issued after 5 April 2007.
C237C218C528C431C432C50298AF413Special penalties in the case of certain returns.
1
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
F809i
in the case of a provision of PAYE regulations, 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 yearF810, or
ii
in the case of a provision of regulations under section 70(1)(a) or 71 of the Finance Act 2004, £3,000.
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.
F9884
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
98BF211 European Economic Interest Groupings.
1
In this section “grouping” means a European Economic Interest Grouping formed in pursuance of Council Regulation (EEC) No. 2137/85 of 25th July 1985, whether registered in Great Britain, in Northern Ireland or elsewhere.
F3172
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 F318subsection (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 F319subsections (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.
98CF813Notification under Part 7 of Finance Act 2004
1
A person who fails to comply with any of the provisions of Part 7 of the Finance Act 2004 (disclosure of tax avoidance schemes) mentioned in subsection (2) below shall be liable—
a
to a penalty not exceeding £5,000, and
b
if the failure continues after a penalty is imposed under paragraph (a) above, to a further penalty or penalties not exceeding £600 for each day on which the failure continues after the day on which the penalty under paragraph (a) was imposed (but excluding any day for which a penalty under this paragraph has already been imposed).
2
Those provisions are—
a
section 308(1) and (3) (duty of promoter in relation to notifiable proposals and notifiable arrangements),
b
section 309(1) (duty of person dealing with promoter outside United Kingdom),
c
section 310 (duty of parties to notifiable arrangements not involving promoter), F981...
d
section F1013312(2) (duty of promoter to notify client of reference number)
e
sections 313A and 313B (duty of promoter to respond to inquiry).
F9802A
Where a failure to comply with a provision mentioned in subsection (2) concerns a proposal or arrangements in respect of which an order has been made under section 306A of the Finance Act 2004 (doubt as to notifiability), the amount specified in subsection (1)(b) above shall be increased to the prescribed sum.
2B
Where a failure to comply with a provision mentioned in subsection (2) concerns a proposal or arrangements in respect of which an order has been made under section 314A of the Finance Act 2004 (order to disclose), the amount specified in subsection (1)(b) above shall be increased to the prescribed sum in relation to days falling after the prescribed period.
2C
In subsection (2A) and (2B)—
a
“the prescribed sum” means a sum prescribed by the Treasury by regulations, and
b
“the prescribed period” means a period beginning with the date of the order under section 314A and prescribed by the Commissioners by regulations.
2D
The making of an order under section 314A of that Act does not of itself mean that, for the purposes of section 118(2) of this Act, a person either did or did not have a reasonable excuse for non-compliance before the order was made.
2E
Where an order is made under section 314A of that Act then for the purposes of section 118(2) of this Act—
a
the person identified in the order as the promoter of the proposal or arrangements cannot, in respect of any time after the end of the period mentioned in subsection (2B), rely on doubt as to notifiability as an excuse for failure to comply with section 308 of that Act, and
b
any delay in compliance with that section after the end of that period is unreasonable unless attributable to something other than doubt as to notifiability.
2F
Regulations under subsection (2C)—
a
may include incidental or transitional provision,
b
shall be made by statutory instrument,
c
in the case of regulations under subsection (2C)(a), shall not be made unless a draft has been laid before and approved by resolution of the House of Commons, and
d
in the case of regulations under subsection (2C)(b), shall be subject to annulment in pursuance of a resolution of the House of Commons.
3
4
In subsection (3) above “the relevant sum” means—
a
in relation to a person not falling within paragraph (b) or (c) below, £100 in respect of each scheme to which the failure relates,
b
in relation to a person who has previously failed to comply with section F1017subsection (1) of section 313 or regulations under subsection (3) of that section on one (and only one) occasion during the period of 36 months ending with the date on which the current failure to comply with that provision began, £500 in respect of each scheme to which the current failure relates (whether or not the same as the scheme to which the previous failure relates), or
c
in relation to a person who has previously failed to comply with section F1017subsection (1) of section 313 or regulations under subsection (3) of that section on two or more occasions during the period of 36 months ending with the date on which the current failure to comply with that provision began, £1,000 in respect of each scheme to which the current failure relates (whether or not the same as the schemes to which any of the previous failures relates).
5
In subsection (4) above “scheme” means any notifiable arrangements within the meaning of Part 7 of the Finance Act 2004.
C96C174C325C292C44499F212Assisting in preparation of incorrect return, etc.
Any person who assists in or induces the preparation or delivery of any information, return, accounts or other document which—
a
he knows will be, or is or are likely to be, used for any purpose of tax, and
b
he knows to be incorrect,
shall be liable to a penalty not exceeding £3,000.
99AF213Certificates of non-liability to income tax.
If a person who gives a certificate of non-liability to income tax in pursuance of regulations under F949section 852 of ITA 2007—
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.
99BF950Declarations under Chapter 2 of Part 15 of ITA 2007
Where a person fraudulently or negligently gives any incorrect information in a declaration under any of sections 858 to 861 of ITA 2007, the person shall be liable to a penalty not exceeding £3,000.
C97C180C366C375C515C518100F261Determination of penalties by officer of the Board.
1
Subject to subsection (2) below and except where proceedings for a penalty have been instituted under section 100D below F348... , 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, F214or
e
section 98B(2)(a) aboveF811, or
f
section 98C(1)(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
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.
C98C519C516100AF261 Provisions supplementary to section 100.
F9891
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C1812
A penalty determined under section 100 above shall be due and payable at the end of the period of thirty days beginning with the date of the issue of the notice of the determination.
C1813
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.
C99C520C517100BF261 Appeals against penalty determinations.
1
An appeal may be brought against the determination of a penalty under section 100 above and, subject to F320sections 93, 93A and 95A of this ActF407and 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
F321Subject 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.
C1873
Without prejudice to F349any right to have a case stated under regulation 22 of the General Commissioners Regulations or any right of appeal under section 56A of this Act, an appeal from a decision of the Commissioners against the amount of a penalty which has been determined under section 100 above or this section shall lie, at the instance of the person liable to the penalty, to the High Court or, in Scotland to the Court of Session as the Court of Exchequer in Scotland; and on that appeal the court shall have the like jurisdiction as is conferred on the Commissioners by virtue of this section.
C288C100C182C521C293100CF261 Penalty proceedings before Commissioners.
1
An officer of the Board authorised by the Board for the purposes of this section may commence proceedings before the General or Special Commissioners for any penalty to which subsection (1) of section 100 above does not apply by virtue of subsection (2) of that section.
F8121A
In its application to a penalty under section 98C(1)(a) above, subsection (1) above has effect with the omission of the words “General or”.
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.
C101C183C522C294C367C376100DF261 Penalty proceedings before court.
1
Where in the opinion of the Board the liability of any person for a penalty arises by reason of the fraud of that person or any other person, proceedings for the penalty may be instituted before the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland.
C2432
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.
C102F583101 Evidence for purposes of proceedings relating to penalties.
An assessment which can no longer be varied by any Commissioners on appeal or by order of any court is sufficient evidence, for the purposes of—
a
the preceding provisions of this Part, and
b
the provisions of Schedule 18 to the Finance Act 1998 relating to penalties,
that the amounts in respect of which tax is charged in the assessment arose or were received as stated in the assessment.
C363C364C184C295C326C435C433C504102 Mitigation of penalties.
The Board may in their discretion mitigate any penalty, or stay or compound any proceedings for F215a penalty, and may also, after judgment, further mitigate or entirely remit the penalty.
C289C363C364C185103F216Time limits for penalties.
1
Subject to subsection (2) below, where the amount of a penalty is to be ascertained by reference to tax payable by a person for any period, the penalty may be determined by an officer of the Board, or proceedings for the penalty may be commenced before the Commissioners or a Court—
a
at any time within six years after the date on which the penalty was incurred, or
b
at any later time within three years after the final determination of the amount of tax by reference to which the amount of the penalty is to be ascertained.
F9902
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C327C2963
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.
C327C2964
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.
C363C364C186C273C297C328C436C434103AF313Interest on penalties.
C103C104C363C364C329C298C368C377104 Saving for criminal proceedings.
The provisions of the Taxes Acts shall not, save so far as is otherwise provided, affect any criminal proceedings for any misdemeanour.
C105C189C299C330C364C369C378105F788Admissibility of evidence not affected by offer of settlement etc.
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 F787—
a
that where serious tax fraud has been committed the Board may accept a money settlement and that the Board will accept such a settlement, and will not pursue a criminal prosecution, if he makes a full confession of all tax irregularities, or
b
that the extent to which he is helpful and volunteers information is a factor that will be taken into account in determining the amount of any penalty,
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 F217fraudulent conduct in connection with or in relation to tax, and
c
any proceedings for a penalty or on appeal against the determination of a penalty.
106 Refusal to allow a deduction of income tax, and avoidance of agreements for payment without deduction.
1
A person who refuses to allow a deduction of income tax authorised by the Taxes Acts to be made out of any payment shall incur a penalty of £50.
2
Every agreement for payment of interest, rent or other annual payment in full without allowing any such deduction shall be void.
Scotland
107 Criminal liability for false statements made to obtain allowances.
1
This section applies only in Scotland.
2
If any person, for the purpose of obtaining any allowance, reduction, rebate or repayment in respect of tax, either for himself or for any other person, or, in any return made with reference to tax, knowingly makes any false statement or false representation, he shall be liable, on summary conviction, to imprisonment for a term not exceeding six months.
3
Notwithstanding anything in the Summary Jurisdiction (Scotland) Act 1954, proceedings for an offence under this section may be commenced at any time within three years from the time when the offence was committed.
4
The expression “return” in this section shall be construed without regard to the definition in section 118(1) of this Act C106.
C205C263PART XI MISCELLANEOUS AND SUPPLEMENTAL
Pt. XI modified (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 18 para. 39(2)(a) (with Sch. 18 para. 59(2)); S.I. 1998/3173, art. 2
Pt. XI: power to apply conferred (with effect in accordance with s. 114(2) of the amending Act) by Finance Act 1999 (c. 16), Sch. 17 para. 17(b)
F410Settlements
S. 107A and cross-heading inserted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 103(5)
C274107A Relevant trustees.
1
Subject to the following provisions of this section, anything which for the purposes of this Act is done at any time by or in relation to any one or more of the relevant trustees of a settlement shall be treated for those purposes as done at that time by or in relation to the other or others of those trustees.
2
Subject to subsection (3) below, where the relevant trustees of a settlement are liable—
a
to a penalty under section 7, 12B, 93, 95 or 97AA of this Act or paragraph 2A of Schedule 1A to this Act, or to interest under section 103A of this Act on such a penalty;
b
to make a payment in accordance with an assessment under section 30 of this Act, or to make a payment under section 59A or 59B of this Act;
c
to a surcharge under section 59C of this Act, or to interest under that section on such a surcharge; or
d
to interest under section 86 of this Act,
the penalty, interest, payment or surcharge may be recovered (but only once) from any one or more of those trustees.
3
No amount may be recovered by virtue of subsection (2)(a) or (c) above from a person who did not become a relevant trustee until after the relevant time, that is to say—
a
in relation to so much of a penalty under section 93(3) or 97AA(1)(b) of this Act as is payable in respect of any day, or to interest under section 103A of this Act on so much of such a penalty as is so payable, the beginning of that day;
b
in relation to a penalty under any other provision of this Act mentioned in subsection (2)(a) above, or to interest under section 103A of this Act on such a penalty, the time when the relevant act or omission occurred; and
c
in relation to a surcharge under subsection (2) or (3) of section 59C of this Act, or to interest under that section on such a surcharge, the beginning of the day mentioned in that subsection;
and in paragraph (b) above “the relevant act or omission” means the act or omission which caused the penalty to become payable.
4
In a case where—
a
subsection (2)(a) above applies in relation to a penalty under section 93 of this Act, or
b
subsection (2)(c) above applies in relation to a surcharge under section 59C of this Act,
subsection (8) of section 93 or, as the case may be, subsection (9) of section 59C of this Act shall have effect as if the reference to the taxpayer were a reference to each of the relevant trustees.
Companies
C190C275108 Responsibility of company officers.
C3821
Everything to be done by a company under the Taxes Acts C109 shall be done by the company acting through the proper officer of the company F220or, 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 C109 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.
C1092
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 [F221Companies 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
C110b
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 .
F2224
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7914
For the purposes of subsection (3)(a), where two or more persons are appointed to act jointly or concurrently as the administrator of a company, the proper officer is—
a
such one of them as is specified in a notice given to the Board by those persons for the purposes of this section, or
b
where the Board is not so notified, such one or more of those persons as the Board may designate as the proper officer for those purposes.
109F225Corporation tax on close company in connection with loans to participators etc.
1
The provisions of F223sections 419 and 420 of the principal Act (charge of tax in connection with loans by close companies to participators etc.) directing that tax be assessed and recoverable as if it were an amount of corporation tax shall be taken as applying, subject to the provisions of the Taxes Acts, and to any necessary modifications, all enactments applying generally to corporation tax, including those relating to the assessing, collecting and receiving of corporation tax, those conferring or regulating a right of appeal and those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.
2
3
F2653A
If
F586a
b
there is such a release or writing off of the whole or any part of the debt in respect of a loan or advance as is referred to in that subsection,
4
Section 91 of this Act shall not apply in consequence of any discharge or repayment of tax under section F223419(4) of the principal Act.
5
For the purposes of the said section 91, a relief from tax under the said F223sections 419 and 420 shall not be treated as affecting tax charged by any assessment unless the assessment is to tax under that section.
Valuation
C111110 Valuation of land: power of entry.
Any person authorised in that behalf by the Board may, on producing if so required evidence of his authority, at any reasonable time enter on and inspect, with a view to establishing its annual value, any land the annual value of which falls to be determined for purposes of income tax or corporation tax .
111 Valuation of assets: power to inspect.
1
If for the purposes of F267the F2261992 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.
F2271A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F8642
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Documents
C191C276C331C300112 Loss, destruction or damage to assessments, returns, etc.
C1121
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.
F2281A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C1132
In this section, “the Commissioners” means, as the case may require, either the Board or the General or Special Commissioners concerned.
F2293
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.
C129C277C331C300113 Form of returns and other documents.
1
Any returns under the Taxes Acts shall be in such form as the Board prescribe, and in prescribing income tax forms under this subsection the Board shall have regard to the desirability of securing, so far as may be possible, that no person shall be required to make more than one return annually of the sources of his income and the amounts derived therefrom.
C114F2301A
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.
C115C116C130C4841B
Where the Board or an inspector or other officer of the Board have in accordance with section 29 of this Act F589or paragraph 41 of Schedule 18 to the Finance Act 1998, 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.
F4901C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2311D
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.
C115C192C4793
Every assessment, F232determination of a penalty, duplicate, warrant, notice of assessment F232, of determination or of demand, or other document required to be used in assessing, charging, collecting and levying tax F232or 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 .
C117C193C278C331C300114 Want of form or errors not to invalidate assessments, etc.
1
An assessment F233or 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.
C2812
An assessment F233or 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 F233or determination.
C119C194C331C300115 Delivery and service of documents.
C118C2791
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 .
C118C2792
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.
C1183
In subsection (2) above “prescribed” means prescribed by regulations made by the Board, and the power of making regulations for the purposes of that subsection shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.
4
Notices to be given or delivered to, or served on, the General Commissioners shall be valid and effectual if given or delivered to or served on their clerk .
C279F3505
Nothing in this section applies to any notice or other document required or authorised by the General Commissioners Regulations or the Special Commissioners Regulations to be sent or delivered to, or served on, any person.
C331C300115AF411Electronic lodgement of tax returns, etc.
Schedule 3A to this Act (which makes provision with respect to the electronic lodgement of tax returns and documents required in connection with tax returns) shall have effect.
F234116. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Northern Ireland
C120117 Action of ejectment in Northern Ireland.
Unless other provision is made in that behalf by any enactment, an action of ejectment in Northern Ireland for non-payment of rent shall not be defeated on the ground that the person liable to pay the rent is entitled under the Income Tax Acts to a deduction which would reduce the amount due by him below a year’s rent.
Interpretation
118 Interpretation.
C122C280C4421
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,
F792. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“chargeable gain” has the same meaning as in F268the F2351992 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 F951section 992(1) of ITA 2007 (with section 468 of the principal Act)F237... ,
F351“the General Commissioners Regulations” means the General Commissioners (Jurisdiction and Procedure) Regulations 1994,
“incapacitated person” means any infant, person of unsound mind, lunatic, idiot or insane person,
F245“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,
F772“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003,
F856“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005,
F952“ITA 2007” means the Income Tax Act 2007,
F269. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F711“partnership return” has the meaning given by section 12AA(10A) of this Act,
“the principal Act” means the Income and Corporation Taxes Act F2361988,
F409“the relevant trustees”, in relation to a settlement, shall be construed in accordance with section 7(9) of this Act.
“return” includes any statement or declaration under the Taxes Acts,
F352“the Special Commissioners Regulations” means the Special Commissioners (Jurisdiction and Procedure) Regulations 1994,
F491“successor”, in relation to a person who is required to make and deliver, or has made and delivered, F712a partnership return, and “predecessor” and “successor”, in relation to the successor of such a person, shall be construed in accordance with section 12AA(11) of this Act;
“tax”, where neither income tax nor capital gains tax nor corporation tax F238nor development land tax is specified, means any of those taxes F239except that in sections 20, 20A, 20B F983... and 20D it does not include development land tax,
C121“the Taxes Acts” means this Act and—
F242“the 1992 Act ” means the Taxation of Chargeable Gains Act 1992
C122“trade” includes every trade, manufacture, adventure or concern in the nature of trade .
C122C195C301C332C395C392C470C4692
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 F243not 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:
F244. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3223
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C1954
For the purposes of this Act, the amount of tax covered by any assessment shall not be deemed to be finally determined until that assessment can no longer be varied, whether by any Commissioners on appeal or by the order of any court.
PART XII GENERAL
119 Commencement and construction.
1
This Act shall come into force for all purposes on 6th April 1970 to the exclusion of the corresponding enactments repealed by the principal Act.
2
This Act, and the repeals made by the principal Act, have effect subject to Schedule 4 to this Act.
3
This Act, so far as it relates to income tax or corporation tax, shall be construed as one with the principal Act.
4
F2475
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
120 Short title.
This Act may be cited as the Taxes Management Act 1970.
Pt. 1 modified (10.7.2003) by Finance Act 2003 (c. 14), Sch. 17 para. 1