Taxes Management Act 1970

PART XI U.K. MISCELLANEOUS AND SUPPLEMENTAL

Companies U.K.

108 Responsibility of company officers. [1966 Sch.VI 24; 1969 Sch.XX 23(3).] U.K.

(1) Everything to be done by a company under the Taxes Acts F1 shall be done by the company acting through the proper officer of the company, and service on a company of any document under or in pursuance of the Taxes Acts F1 may be effected by serving it on the proper officer.

This subsection is without prejudice to Part VIII of this Act (charges on non-residents) as it applies to corporation tax.

(2) Corporation tax or other tax chargeable under the Corporation Tax Acts F1 on a company which is not a body corporate, or which is a body corporate not incorporated under the [Companies Act 1985 F2 ] or any other enactment forming part of the law of the United Kingdom, or by Charter, may, at any time after the tax becomes due, and without prejudice to any other method of recovery, be recovered from the proper officer of the company, and that officer may retain out of any money coming into his hands on behalf of the company sufficient sums to pay that tax, and, so far as he is not so reimbursed, shall be entitled to be indemnified by the company in respect of the liability so imposed on him.

(3) For the purposes of this section—

(a) the proper officer of a company which is a body corporate shall be the secretary or person acting as secretary of the company, except that if a liquidator has been appointed for the company the liquidator shall be the proper officer,

(b) the proper officer of a company which is not a body corporate or for which there is no proper officer within paragraph (a) above, shall be the treasurer or the person acting as treasurer, of the company F3 .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4

Textual Amendments

F1 SeeOil Taxation Act 1975 s.1andSch.2 para.1(1)—Oil Taxation Acts—regarding modification in relation to petroleum revenue tax and supplementary petroleum duty.

F2 Companies Consolidation (Consequential Provisions) Act 1985 (c. 9) s. 30and Sch. 2with effect from 1 July 1985. Previously

“Companies Act 1948”.

F3 SeeFinance Act 1981 s.134andSch.17 para.18—application of this section to the special tax on banking deposits.

F4 A development land tax provision added byDevelopment Land Tax Act 1976 Sch.8 para.29. Development Land Tax Act 1976repealed byFinance Act 1985 s.98(6)andSch.27 Part X.

109 [Corporation tax on close company in connection with loans to participators etc. U.K.

(1) The provisions of [sections 419 and 420 F5 ] of the principal Act (charge of tax in connection with loans by close companies to participators etc.) directing that tax be assessed and recoverable as if it were an amount of corporation tax shall be taken as applying, subject to the provisions of the Taxes Acts, and to any necessary modifications, all enactments applying generally to corporation tax, including those relating to the assessing, collecting and receiving of corporation tax, those conferring or regulating a right of appeal and those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.

(2) Section 86 of this Act shall apply in relation to tax under the said [sections 419 and 420 F5 ] as if [the date given by the Table in subsection (4) of the said section 86 were the last day of the three months following the end of the financial year in which the loan or advance was made F6 ]. F7

(3) For the purposes of section 88 F7 of this Act as applied by subsection (1) above, the date when tax charged under the said [sections 419 and 420 F5 ] ought to have been paid shall be taken to be the first day of the [financial year F6 ] following that in which the loan or advance was made. F7

(3A)

F7 (4) Section 91 of this Act shall not apply in consequence of any discharge or repayment of tax under section [419(4) F5 ] of the principal Act.

(5) For the purposes of the said section 91, a relief from tax under the said [sections 419 and 420 F5 ] shall not be treated as affecting tax charged by any assessment unless the assessment is to tax under that section F8 .]

Textual Amendments

F5 Income and Corporation Taxes Act 1988 Sch. 29 para. 32.

F6 Words substituted byFinance (No.2) Act 1975 s.46(5)in relation to tax charged by assessments where notices issued after31July1975.

F7 See Finance (No. 2) Act 1987 s. 91for changes in respect of loans or advances made (or treated as made) in accounting periods ending after a day to be appointed. See also Income and Corporation Taxes Act 1988 Sch. 29 para. 10(8)(a)(b)for later changes.

F8 Finance Act 1972 s.111andSch.24 para.13in relation to times after5April1973 (subject tos.111(3)).

Valuation U.K.

110 Valuation of land: power of entry. [1963 s.30(2); 1969 Sch.XX 20(4).] U.K.

Any person authorised in that behalf by the Board may, on producing if so required evidence of his authority, at any reasonable time enter on and inspect, with a view to establishing its annual value, any land the annual value of which falls to be determined for purposes of income tax or corporation tax F9 .

Textual Amendments

F9 SeeInland Revenue Regulation Act 1890 (c. 21, SIF 63:1) s.11 (reproduced inPart II Vol.5)—fine for obstruction of officers.

111 Valuation of assets: power to inspect. [1965 Sch.X 14.] U.K.

(1) If for the purposes of [the Capital Gains Tax Act 1979 F10 ] 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.

(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F11

(2) If any person wilfully delays or obstructs an inspector or other officer of the Board acting in pursuance of this section he shall be liable on summary conviction to a fine not exceeding £5 F12 .

Textual Amendments

F10 Capital Gains Tax Act 1979 (c. 14, SIF 63:2) s.157(2)andSch.7 para.8for1979—80et seq.

F11 A development land tax provision added byDevelopment Land Tax Act 1976 Sch.8 para.30. Development Land Tax Act 1976repealed byFinance Act 1985 s.98(6)andSch.27 Part X.

F12 Increased to£25by virtue of theCriminal Justice Act 1982 (c.48) ss.37, 38and54from11April1983by S.I. 1982 No.1857andS.I. 1983 No.24and to £50from 1 May 1984 by S.I. 1984 No. 447and S.I. 1984 No. 526 (s. 61).

Documents U.K.

112 Loss, destruction or damage to assessments, returns, etc. [1952 s.513; 1965 Sch.X 1(1); 1966 Sch.VI 13, 27(1).] U.K.

(1) Where any assessment to tax, or any duplicate of assessment to tax, or any return or other document relating to tax, has been lost or destroyed, or been so defaced or damaged as to be illegible or otherwise useless, the Commissioners, inspectors, collectors and other officers having powers in relation to tax may, notwithstanding anything in any enactment to the contrary, do all such acts and things as they might have done, and all acts and things done under or in pursuance of this section shall be as valid and effectual for all purposes as they would have been, if the assessment or duplicate of assessment had not been made, or the return or other document had not been made or furnished or required to be made or furnished F13 :

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.

(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F14

(2) In this section, “the Commissioners” means, as the case may require, either the Board or the General or Special Commissioners concerned F15 .

[(3) The references in subsection (1) above to assessments to tax include references to determinations of penalties; and in its application to such determinations the proviso to that subsection shall have effect with the appropriate modifications F16 .]

Textual Amendments

F13 SeeOil Taxation Act 1975 s.1andSch.2 para.1(1)—Oil Taxation Acts—regarding modifications relating to petroleum revenue tax and supplementary petroleum duty.

F14 A development land tax provision added byDevelopment Land Tax Act 1976 Sch.8 para.31. Development Land Tax Act 1976repealed byFinance Act 1985 s.98(6)andSch.27 Part X.

F15 SeeFinance Act 1981 s.134andSch.17 para.18—application of this provision to the special tax on banking deposits.

F16 Finance Act 1989 s. 168(6).

113 Form of returns and other documents. [1952 s.25; 1964(M) Sch.IV; 1966 Sch.VI 5(2)(3); 1969 Sch.XX 15.] U.K.

(1) Any returns under the Taxes Acts shall be in such form as the Board prescribe, and in prescribing income tax forms under this subsection the Board shall have regard to the desirability of securing, so far as may be possible, that no person shall be required to make more than one return annually of the sources of his income and the amounts derived therefrom.

[(1A) Any notice or direction requiring any return to be made under the Taxes Acts to an inspector or other officer of the Board may be issued or given in the name of that officer, or as the case may be in the name of the Board, by any officer of the Board, and so as to require the return to be made to the first-mentioned officer F17 .

(1B) Where the Board or an inspector or other officer of the Board have in accordance with section 29 of this Act, or any other provision of the Taxes Acts, decided to make an assessment to tax, and have taken all other decisions needed for arriving at the amount of the assessment, they may entrust to some other officer of the Board responsibility for completing the assessing procedure, whether by means involving the use of a computer or otherwise, including responsibility for serving notice of the assessment on the person liable for tax F18 .] F19

(1C) Where an officer of the Board has decided that an amount of tax carries interest under section 88 of this Act and has taken the decisions needed for arriving at the date when for the purposes of that section that tax ought to have been paid, he may entrust to any other officer of the Board responsibility for completing the determination procedure, whether by means involving the use of a computer of otherwise, including responsibility for serving notice of the determination on the person liable to the interest F20 .]

(1D) Where an officer of the Board has decided to impose a penalty under section 100 of this Act and has taken all other decisions needed for arriving at the amount of the penalty, he may entrust to any other officer of the Board responsibility for completing the determination procedure, whether by means involving the use of a computer or otherwise, including responsibility for serving notice of the determination on the person liable to the penalty F21 .]

M1 (2) Any return or assessment or other documentrelating to chargeable gains or tax on capital gains may be combined with one relating to income or income tax.

M2 (3) Every assessment, [determination of a penalty F22 ,] duplicate, warrant, notice ofassessment[, of determination F22 ] or of demand, or other document required to be used in assessing, charging, collecting and levying tax [or determining a penalty F22 ] 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 F19 F23 .

Textual Amendments

F17 SeeFinance Act 1981 s.134andSch.17 para.18—application of this provision to the special tax on banking deposits.

F18 Finance Act 1970, s.18andSch.4, para.10.

F19 See—Finance Act 1981 s.134andSch.17 para.18—application of this provision to the special tax on banking deposits.Oil Taxation Act 1975 s.1andSch.2 para.1(1)—Oil Taxation Acts—ss.113and114applied with modifications in relation to petroleum revenue tax and supplementary petroleum duty.Income and Corporation Taxes Act 1988 Sch. 19 para. 13(7)—ss 113(1B)and (3)and 114(2)applied in relation to apportionment of close company's income.S.I. 1990 No. 627, regn. 8 (in Part III Vol. 5)—application of ss. 113(1B)and (3)to underwriters for 1987-88.

F20 Finance Act 1989 s. 160(4).

F21 Finance Act 1989 s. 168(7)(a).

F22 Finance Act 1989 s. 168(7)(b).

F23 See Income and Corporation Taxes Act 1988 Sch. 16 para. 13(7)—ss. 113(1B)and (3)applied in relation to apportionment of close company's income.

Marginal Citations

M1 1965

Sch. X 17.

M2 1952 s.514(1); 1965 Sch.X 1(1); 1966 Sch.VI 13.

114 Want of form or errors not to invalidate assessments, etc. [1952 s.514(2)(3); 1965 Sch.X 1(1); 1966 Sch.VI 13.] U.K.

(1) An assessment [or determination F24 ], warrant or other proceeding which purports to be made in pursuance of any provision of the Taxes Acts shall not be quashed, or deemed to be void or voidable, for want of form, or be affected by reason of a mistake, defect or omission therein, if the same is in substance and effect in conformity with or according to the intent and meaning of the Taxes Acts, and if the person or property charged or intended to be charged or affected thereby is designated therein according to common intent and understanding.

(2) An assessment [or determination F24 ] 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 [or determination F24 .] F25 .

Textual Amendments

F24 Finance Act 1989 (c. 26), s. 160(5).

F25 See Income and Corporation Taxes Act 1988 Sch. 16 para. 13(7)—ss. 114(2)applied in relation to apportionment of close company's income.

Modifications etc. (not altering text)

C1 S. 114 applied by See Finance Act 1981 (c. 35), s. 134, Sch.17 para.18 (special tax on banking deposits).

115 Delivery and service of documents. [1952 s.515(1); 1965 Sch.X 1(1); 1966 Sch.VI 13.] [1969 Sch.XX 16(1)(2).] U.K.

(1) A notice or form which is to be served under the Taxes Acts on a person may be either delivered to him or left at his usual or last known place or residence F26 .

(2) Any notice or other document to be given, sent, served or delivered under the Taxes Acts may be served by post F26 , and, if to be given, sent, served or delivered to or on any person by the Board, by any officer of the Board, or by or on behalf of any body of Commissioners, may be so served addressed to that person—

(a) at his usual or last known place of residence, or his place of business or employment, or

(b) in the case of a company, at any other prescribed place, and in the case of a liquidator of a company, at his address for the purposes of the liquidation or any other prescribed place .

(3) In subsection (2) above “prescribed” means prescribed by regulations made by the Board, and the power of making regulations for the purposes of that subsection shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons .

M3 (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 .

Textual Amendments

F26 See also the Interpretation Act 1978 (c. 30): “References to service by post.7. Where an Act authorises or requires any document to be served by post (whether the expression “serve” or the expression “give” or “send” or any other expression is used) then, unless the contrary intention appears, the service is deemed to be effected by properly addressing, pre-paying and posting a letter containing the document and, unless the contrary is proved, to have been effected at the time at which the letter would be delivered in the ordinary course of post.”

Modifications etc. (not altering text)

C2 S. 115(1)-(3) applied by Finance Act 1981 (c. 35), s. 134, Sch.17 para.18 (special tax on banking deposits).

C3 See Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1) (Oil Taxation Acts) regarding modification in relation to petroleum revenue tax and supplementary petroleum duty

Marginal Citations

M3 1952 s.515(5); 1965 Sch.X 1(1); 1966 Sch.VI 13.

116 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F27 U.K.

Textual Amendments

F27 (Receipts, etc. exempt from stamp duty.)Repealed byFinance Act 1970 s.36(8)andSch.8 Part V,as from1February1971.

Northern Ireland U.K.

117 Action of ejectment in Northern Ireland. [1952 Sch.XXIII 12.] U.K.

Unless other provision is made in that behalf by any enactment F28 , 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.

Textual Amendments

F28 See theNorthern Ireland Constitution Act 1973 (c.36), s.40andSch.5 para.1—includes, from appointed day, a Measure of the Northern Ireland Assembly.

Interpretation U.K.

118 Interpretation. [1952 s.526(1).] U.K.

(1) In this Act, unless the context otherwise requires—

• “Act” includes an Act of the Parliament of Northern Ireland F29 and “enactment” shall be construed accordingly,

• “the Board” means the Commissioners of Inland Revenue,

• “body of persons” means any body politic, corporate or collegiate, and any company, fraternity, fellowship and society of persons, whether corporate or not corporate,

• “branch or agency” means any factorship, agency, receivership, branch or management, and “branch or agent” shall be construed accordingly F30 ,

• “chargeable gain” has the same meaning as in [the Capital Gains Tax Act 1979 F31 ],

• “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 [sections 419 and 420 F32 ] of the principal Act (with section 468 F32 ] of that Act) . . . F33 ,

• “incapacitated person” means any infant, person of unsound mind, lunatic, idiot or insane person,

• “inspector” means any inspector of taxes,

• “neglect”means negligence or a failure to give any notice, make any return or to produce or furnish any document or other information required by or under the Taxes Acts F34 ,

• “the principal Act” means the Income and Corporation Taxes Act [1988 F32 ],

• “return” includes any statement or declaration under the Taxes Acts,

• “tax”, where neither income tax nor capital gains tax nor corporation tax [nor development land tax F35 ] is specified, means any of those taxes [except that in sections 20, 20A, 20B, 20C and 20D it does not include development land tax F36 ],

• “the Taxes Acts” F37 means this Act and—

(a) the Tax Acts . . . [Repealed by Income and Corporation Taxes Act 1988 s. 844and Sch. 31.See 1987edition for text] and

(b) [The Capital Gains Tax Act 1979 F31 ] and all other enactments relating to capital gains tax,

(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F38

• “trade” includes every trade, manufacture, adventure or concern in the nature of trade F39 .

M4 (2) For the purposes of this Act, a person shall be deemed not to have failed to do anything required to be done within a limited time if he did it within such further time, if any, as the Board or the Commissioners or officer concerned may have allowed; and where a person had a reasonable excuse for not doing anything required to be done he shall be deemed [not to have failed to do it unless the excuse ceased and, after the excuse ceased, he shall be deemed F40 ] not to have failed to do it if he did it without unreasonable delay after the excuse had ceased:

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F41

F39 M5 (3) For the purposes of [section 36 F42 ] and Part X of this Act, an assessment made in the partnership name and the tax charged in such an assessment shall, according to the law in Scotland as well as according to the law elsewhere in the United Kingdom, be deemed to be respectively an assessment made on the partners and tax charged on and payable by them F39 .

M6 (4) For the purposes of this Act, the amount of tax covered by any assessment shall not be deemed to be finally determined until that assessment can no longer be varied, whether by any Commissioners on appeal or by the order of any court.

Textual Amendments

F29 See theNorthern Ireland Constitution Act 1973 (c.36), s.40andSch.5 para.1—includes, from appointed day, a Measure of the Northern Ireland Assembly.

F30 See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) ss. 606and 612 (administration of retirement benefits schemes)—definition applied.

F31 Capital Gains Tax Act 1979 (c. 14, SIF 63:2) s.157(2)andSch.7 para.8for1979—80et seq.

F32 Income and Corporation Taxes Act 1988 Sch. 29 para. 32.

F33 Words omitted related to development land tax. Development Land Tax Act 1976repealed byFinance Act 1985 s.98(6)andSch.27 Part X.

F34 See Finance Act 1988 (c. 39, SIF 63:1,2) s. 127—production of computer records. Definition repealed by Finance Act 1989 s. 187and Sch. 17 Part VIIIbut does not affect the making of assessments for years before 1983-84or accounting periods ending before 1 April 1983.

F35 Development Land Tax Act 1976 s.41andSch.8 para.32.Repealed byFinance Act 1985 s.98(6)andSch.27 Part Xin respect of disposals taking place on or after19March1985.

F36 Finance Act 1976 s.57(2).

F37 See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) s. 754(9)—application to s. 754 (controlled foreign companies.).

F38 A development land tax provision added byDevelopment Land Tax Act 1976 Sch.8 para.32. Development Land Tax Act 1976repealed byFinance Act 1985 s.98(6)andSch.27 Part X.

F39 SeeFinance Act 1981 s.134andSch.17 para.18—application of this provision to the special tax on banking deposits.

F40 Finance (No. 2) Act 1987 s. 94.

F41 Proviso repealed byFinance Act 1970 s.36(8)andSch.8 Part VII.

F42 Finance Act 1989 s. 149(3)(b)but not to affect the making of assessments before 1983-84or for accounting periods ending before 1 April 1983. Previously

“sections 37 to 39”.

Marginal Citations

M4 1960

s. 63(2).

M5 1960

s. 63(3).

M6 [1952 s. 501(1); 1960 s.63(4).]