PART II RETURNS OF INCOME AND GAINS

Income tax

F17Notice 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)

In the case of F2persons who are chargeable as mentioned in subsection (1) above as F3the relevant trustees of a settlement, that subsection shall have effect as if the reference to a notice under section 8 of this Act were a reference to a notice under section 8A of this Act.

(3)

A person shall not be required to give notice under subsection (1) above in respect of a year of assessment if for that year his total income consists of income from sources falling within subsections (4) to (7) below and he has no chargeable gains.

(4)

A source of income falls within this subsection in relation to a year of assessment if—

(a)

all payments of, or on account of, income from it during that year, and

(b)

all income from it for that year which does not consist of payments,

have or has been taken into account in the making of deductions or repayments of tax under section 203 of the principal Act.

(5)

A source of income falls within this subsection in relation to any person and any year of assessment if all income from it for that year has been or will be taken into account—

(a)

in determining that person’s liability to tax, or

(b)

in the making of deductions or repayments of tax under section 203 of the principal Act.

(6)

A source of income falls within this subsection in relation to any person and any year of assessment if all income from it for that year is—

(a)

income from which income tax has been deducted;

(b)

income from or on which income tax is treated as having been deducted or paid; or

(c)

income chargeable under Schedule F,

and that person is not for that year liable to tax at a rate other than the basic rate or the lower rate.

(7)

A source of income falls within this subsection in relation to any person and any year of assessment if all income from it for that year is F4income 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.

F5(9)

For the purposes of this Act the relevant trustees of a settlement are—

(a)

in relation to income, the persons who are trustees when the income arises and any persons who subsequently become trustees; and

(b)

in relation to chargeable gains, the persons who are trustees in the year of assessment in which the chargeable gains accrue and any persons who subsequently become trustees.