Taxes Management Act 1970

PART I U.K. ADMINISTRATION

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

(1) Income tax, corporation tax F1 . . . and capital gains tax shall be under the care and management of the Commissioners of Inland Revenue (in this Act referred to as “the Board”), and the definition of “inland revenue” in section 39 of the Inland Revenue Regulation Act 1890 shall have effect accordingly .

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

[F2 (2A) The Board may appoint a person to be an inspector or collector for general purposes or for such specific purposes as the Board think fit.

(2B) Where in accordance with the Board’s administrative practices a person is authorised to act as an inspector or collector for specific purposes, he shall be deemed to have been appointed to be an inspector or collector for those purposes.]

(3) Any legal proceedings or administrative act relating to any tax begun by one inspector or collector may be continued by another inspector or, as the case may be, another collector; and any inspector or collector may act for any division or other area.

Textual Amendments

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to development land tax added by Development Land Tax Act 1976 (c. 24) Sch. 8 para. 1; Development Land Tax Act 1976 repealed by Finance Act 1985 (c. 54) s. 98(6), Sch. 27 Pt.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

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

Modifications etc. (not altering text)

C1 S. 1 extended (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 15(3), 173(4), Sch. 2 para. 6(2) (with ss. 108(5), 116(3), 165)

C2 S. 1 applied (E.W.) (1.4.2000) by Education (Student Loans) (Repayment) Regulations 2000 (S.I. 2000/944), regs. 1(1), 4(1)

C3 S. 1 applied (N.I.) (1.4.2000) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2000 (S.R. 2000/121), regs. 1, 4(1)

C4 S. 1(3) applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

C5 S. 1(3) applied by Finance Act 1981 s. 134, Sch. 17 para. 18 (special tax on banking deposits).

2 General Commissioners U.K.

(1) For the purpose of exercising such powers relating to appeals and other matters as are conferred on them by the Taxes Acts [F3 or by Part II of the Social Security Contributions (Transfer of Functions, etc.) Act 1999] [F4 or 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 [F5 or for the separate areas in Northern Ireland defined by an order made by the Lord Chancellor] (in the Taxes Acts referred to as “divisions”).

(2) General Commissioners for divisions in England and Wales [F5 or Northern Ireland] shall be appointed by, and shall hold office during the pleasure of, the Lord Chancellor.

(3) General Commissioners for divisions in Scotland shall be appointed by, and shall hold office during the pleasure of, [F6 the Secretary of State], F7 ... .

(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.

[F8 (5) The Lord Chancellor or, in Scotland, the Secretary of State shall pay General Commissioners by way of travelling allowance or subsistence allowance sums of such amounts and in such circumstances as he may, with the approval of the Treasury, determine.]

(6) The Lord Chancellor or, in Scotland, the Secretary of State may by order create a new division or abolish an existing division or alter in any other respect the divisions or their boundaries; and any such order may contain such consequential and transitional provisions as the Lord Chancellor or the Secretary of State, as the case may be, thinks fit and may be revoked or varied by a subsequent order under this subsection.

F9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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.

[F10 (9) 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.]

Textual Amendments

F3 Words in s. 2(1) inserted (4.3.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 7 para. 1; S.I. 1999/527, art. 2(a)(b), Schs. 1, 2 (with arts. 3-6)

F4 Words in s. 2(1) inserted (26.3.1999 for specified purposes, 1.4.1999 in so far as not already in force) by The Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671), art. 1(3), Sch. 6 para. 1; S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (with arts. 3-6)

F5 Added by Finance Act 1988 s. 134(1)(4) from 3 April 1989; Commencement order S.I. 1989 No. 473.

F6 Finance Act 1975 s. 57(1) from 15May 1975.

F7 Words omitted repealed by Finance Act 1975 s. 59(5), Sch. 13 Part II.

F8 S. 2(5) substituted (1.4.1994) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para. 2(1)(5)

F9 Words in s. 2(6) repealed (on or after 3.4.1989) by Finance Act 1988 (c. 39), s. 148, Sch. 14 Part IX; S.I. 1989/473

F10 S. 2(9)(10) inserted (1.4.2001 for E.W.N.I., 31.3.2003 for S.) by Access to Justice Act 1999 (c. 22), ss. 101, 108(1); S.I. 2001/916, art. 2(b)(ii); S.S.I. 2003/207, art. 2(a)

Modifications etc. (not altering text)

C6 S. 2(3) functions transferred (1.7.1999) by The Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750), arts. 1(1), 2, Sch. 1 (with art. 7)

C7 See Finance Act 1973 s. 41 (boundaries of divisions specified by order made or having effect as if made under s. 2(6) not to be affected by changes in local government areas in England and Wales on 1 April 1974 or in Scotland on 16 May 1975)

C8 S. 2(6) functions transferred (1.7.1999) by The Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750), arts. 1(1), 2, Sch. 1 (with art. 7)

[F11 2A General Commissioners: costs and expenses in legal proceedings. U.K.

(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.

(3) 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.]

Textual Amendments

F11 S. 2A inserted (1.4.2001 for E.W.N.I., 31.3.2003 for S.) by Access to Justice Act 1999 (c. 22), ss. 102, 108(1); S.I. 2001/916, art. 2(b)(ii); S.S.I. 2003/207, art. 2(b) (with art. 3)

Modifications etc. (not altering text)

C9 S. 2A excluded (28.2.2001) by The Access to Justice Act 1999 (Commencement No. 7, Transitional Provisions and Savings) Order 2001 (S.I. 2001/916), Sch. 1 para. 6

C10 S. 2A(3) restricted (1.4.2001) by The General Commissioners of Income Tax (Costs) Regulations 2001 (S.I. 2001/1304), regs. 1, 3

3 Clerk to General Commissioners. U.K.

(1) The General Commissioners for every division shall appoint a clerk and, if they think it necessary, an assistant clerk, and persons appointed under this subsection shall hold office during the pleasure of the Commissioners and act under their direction.

[F12 (2) The Lord Chancellor or, in Scotland, the Secretary of State shall pay a clerk such remuneration in respect of his services as the Lord Chancellor or Secretary of State may, with the approval of the Treasury, determine.]

(3) [F13 The Lord Chancellor or, in Scotland, the Secretary of State may, in such cases as he may in his discretion determine], pay to or in respect of any full-time clerk such pension [F14 allowance] or gratuity, or make such provision for the payment of pension [F14 allowance] or gratuity to or in respect of any full-time clerk, as [F15 he may, with the approval of the Treasury, determine].

In this subsection “full-time clerk” means a clerk as regards whom [F15 the Lord Chancellor or Secretary of State is satisfied] that he is required to devote substantially the whole of his time to the duties of his office .

(4) Without prejudice to the power of any General Commissioners to dismiss their clerk or assistant clerk, the Lord Chancellor or, in Scotland, the Secretary of State may, after consulting the General Commissioners for any division, dismiss their clerk or assistant clerk.

(5) A clerk or assistant clerk shall not continue in office after he has attained the age of seventy years unless the General Commissioners for whom he acts think it desirable in the public interest and extend his term of office; and the term shall not be extended beyond the age of seventy-five years.

Textual Amendments

F12 S. 3(2) substituted (1.4.1994) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para. 2(3)(5)

F13 Words in s. 3(3) substituted (1.4.1994) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para. 2(4)(a)(5)

F14 Words in s. 3(3) inserted by Superannuation Act 1972 (c.11), s. 26, Sch. 6 para. 77

F15 Words in s. 3(3) substituted (1.4.1994) by Finance (No. 2) Act 1992 (c. 48), s. 76, Sch. 16 para. 2(4)(b)(c)(5)

Modifications etc. (not altering text)

C11 See also Finance Act 1972 s. 130—compensation for loss of office etc. by clerks on reorganisation of divisions.

C12 S. 3(4) functions transferred (1.7.1999) by The Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750), arts. 1(1), 2, Sch. 1 (with art. 7)

[F16 3A General Commissioners and clerks: indemnity. U.K.

(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.]

Textual Amendments

F16 S. 3A inserted (1.4.2001 for E.W.N.I., 31.3.2003 for S.) by Access to Justice Act 1999 (c. 22), ss. 103, 108(1); S.I. 2001/916, art. 2(b)(ii); S.S.I. 2003/207, art. 2(c)

[F17 4 Special Commissioners. U.K.

(1) The Lord Chancellor shall, after consultation with the Lord Advocate, appoint such persons as he thinks fit as “Commissioners for the special purposes of the Income Tax Acts” (in the Taxes Acts referred to as “Special Commissioners”) and shall designate one of the Special Commissioners as the Presiding Special Commissioner .

(2) No person shall be appointed under subsection (1) above unless—

[F18 (a) he has a 10 year general qualification, within the meaning of section 71 of the Courts and Legal Services Act 1990;

(b) he is an advocate or solicitor in Scotland of at least 10 years’ standing; or

(c) he is a member of the Bar of Northern Ireland or solicitor of the Supreme Court of Northern Ireland of at least 10 years’ standing ]

(3) If the Presiding Special Commissioner is temporarily absent or unable to act or there is a vacancy in his office, the Lord Chancellor may designate another Special Commissioner to act as deputy Presiding Special Commissioner and the Commissioner so designated shall, when so acting, have all the functions of the Presiding Special Commissioner.

[F19 (3A) A Special Commissioner—

(a) may resign his office at any time; and

(b) shall vacate his office on the day on which he attains the age of seventy years;

but paragraph (b) above is subject to section 26(4) to (6) of the Judicial Pensions and Retirement Act 1993 (power to authorise continuance in office up to the age of 75).]

(4) The Lord Chancellor may, if he thinks fit, and after consultation with the Lord Advocate, remove a Special Commissioner from office on the grounds of incapacity or misbehaviour.

(5) By virtue of their appointment the Special Commissioners shall have authority to execute such powers, and to perform such duties, as are assigned to them by any enactment.

(6) Such sums shall be allowed to Special Commissioners in respect of salary and incidental expenses and such pensions (including allowances and gratuities) shall be paid to, or in respect of, them as the Lord Chancellor may, with the approval of the Treasury, determine.

[F20 (6A) Subsection (6) above, so far as relating to pensions (including allowances and gratuities), shall not have effect in relation to a person to whom Part I of the Judicial Pensions and Retirement Act 1993 applies, except to the extent provided by or under that Act.]

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

Textual Amendments

F17 Ss. 4. 4A substituted (1.1.1985) by Finance Act 1984 (c. 43), s. 127, Sch. 22 para. 1; S.I. 1984/1836 (c. 45) (but not to affect the appointment of any person, who, immediately before the passing of Finance Act 1984, held office as a Special Commissioner)

F18 Courts and Legal Services Act 1990 (c. 41), s. 71(2), Sch. 10 para. 30

F19 S. 4(3A) inserted (31.3.1995) by Judicial Pensions and Retirement Act 1993 (c. 8), s. 31(2), Sch. 6 para. 36(1) (with Sch. 7); S.I. 1995/631, art. 2

F20 S. 4(6A) inserted (31.3.1995) by Judicial Pensions and Retirement Act 1993 (c. 8), s. 31(2), Sch. 8 para. 8; S.I. 1995/631, art. 2

Modifications etc. (not altering text)

C13 S. 4 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

S. 4 applied by Finance Act 1981 s. 134, Sch. 17 para. 18 (special tax on banking deposits).

C14 S. 4 functions transferred (19.5.1999) by The Transfer of Functions (Lord Advocate and Secretary of State) Order 1999 (S.I. 1999/678), arts. 1, 2(1), Sch.

C15 S. 4: certain functions made exercisable (30.6.1999) by The Scotland Act 1998 (Functions Exercisable in or as Regards Scotland) Order 1999 (S.I. 1999/1748), arts. 1, 3, Sch. 1 para. 4

C16 S. 4(1) functions transferred (1.7.1999) by The Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750), arts. 1(1), 2, Sch. 1 (with art. 7)

C17 S. 4(4) functions transferred (1.7.1999) by The Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750), arts. 1(1), 2, Sch. 1 (with art. 7)

Marginal Citations

M1 1971 c.23.

[F17 4A Deputy Special Commissioners. U.K.

(1) If it appears to the Lord Chancellor expedient to do so in order to facilitate the performance of any functions of the Special Commissioners, he may, after consultation with the Lord Advocate, appoint a person to be a deputy Special Commissioner during such period or on such occasions as the Lord Chancellor thinks fit.

(2) A person shall not be qualified for appointment as a deputy Special Commissioner unless he is qualified for appointment as a Special Commissioner [F21 (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.

F22 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) The Lord Chancellor may pay to any person appointed under this section such remuneration and allowances as he may, with the approval of the Treasury, determine.]

Textual Amendments

F17 Ss. 4. 4A substituted (1.1.1985) by Finance Act 1984 (c. 43), s. 127, Sch. 22 para. 1; S.I. 1984/1836 (c. 45) (but not to affect the appointment of any person, who, immediately before the passing of Finance Act 1984, held office as a Special Commissioner)

F21 Words in s. 4A(2) added (31.3.1995) by Judicial Pensions and Retirement Act 1993 (c. 8), s. 31(2), Sch. 6 para. 36(2) (with Sch. 7); S.I. 1995/631, art. 2

F22 S. 4A(5) repealed (31.3.1995) by Judicial Pensions and Retirement Act 1993 (c. 8), s. 31(2), Sch. 9; S.I. 1995/631, art. 2

Modifications etc. (not altering text)

C18 S. 4A: functions transferred (19.5.1999) by The Transfer of Functions (Lord Advocate and Secretary of State) Order 1999 (S.I. 1999/678), arts. 1, 2(1), Sch.

C19 S. 4A: certain functions made exercisable (30.6.1999) by The Scotland Act 1998 (Functions Exercisable in or as Regards Scotland) Order 1999 (S.I. 1999/1748), arts. 1, 3, Sch. 1 para. 4

C20 S. 4A(1) functions transferred (1.7.1999) by The Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750), arts. 1(1), 2, Sch. 1 (with art. 7)

5 General and Special Commissioners. U.K.

(1) No General Commissioner or Special Commissioner shall act as such in relation to any matter in which he has a personal interest, or is interested on behalf of another person, except with the express consent of the parties to the proceedings.

F23 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F23 S. 5(2) repealed (E.W.) (30.3.1974) by Criminal Justice Act 1972 (c. 71) s. 64(2), Sch. 6 Pt. I; S.I. 1973 No. 1472 r. 2, Sch. 2; s. 5(2) repealed (S.) (22.12.1980) by Law Reform (Miscellaneous Provisions) (Scotland) Act 1980 (c. 55), s. 28(2), Sch. 3; S.I. 1980 No. 1726 (C. 74) (S. 148)

6 Declarations on taking office. U.K.

(1) Every person who is appointed to be—

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

F24 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) a member of the tribunal established under section [F25 706] of the principal Act (cancellation of tax advantages),

shall make a declaration in the form set out in Part I of Schedule 1 to this Act before another person holding the same office, or before a General Commissioner.

(2) Every person who is appointed to be a clerk or assistant clerk to the General Commissioners for any division, or who assists any such clerk, shall make a declaration in the form set out in Part I of Schedule 1 to this Act.

A clerk or assistant clerk shall make the declaration before a General Commissioner for the division, and a person who assists any such clerk shall make the declaration before such a General Commissioner or the clerk.

(3) Every person who is appointed to be a member of the Board shall make a declaration in the form set out in Part II of Schedule 1 to this Act before another member of the Board.

(4) Every person who is appointed an inspector or collector, or who is appointed by the Board to serve in any other capacity, shall make a declaration in the form set out in Part III of Schedule 1 to this Act before such person as the Board may direct.

(5) A declaration under this section shall be made as soon as may be after first appointment to the office in question.

Textual Amendments

F24 S. 6(1)(b) repealed by Finance Act 1982 s. 157, Sch. 22 Part X.

F25 Words in s. 6(1) substituted by Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para 32.

Modifications etc. (not altering text)

C21 See—Finance Act 1989 (c. 26), s. 182—disclosure of information.

C22 S. 6 modified (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), ss. 3(5), 28(3); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

C23 S. 6 extended (9.7.2002) by Tax Credits Act 2002 (c. 21), ss. 2(6), 61; S.I. 2002/1727, art. 2

C24 S. 6 modified (8.12.2002) by Employment Act 2002 (c. 22), ss. 5(3), 55(2); S.I. 2002/2866, art. 2(2), Sch. 1 Pt. 2

C25 S. 6 modified (26.2.2003 for specified purposes, 1.4.2003 for specified purposes, 7.4.2003 in so far as not already in force) by Tax Credits Act 2002 (c. 21), ss. 53(5), 61; S.I. 2003/392, art. 2