PART II RETURNS OF INCOME AND GAINS

Income tax

C1C2C37F1Notice 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

F17b

falls within subsection (1A) or (1B),

shall, subject to subsection (3) below, within F18the notification period, give notice to an officer of the Board that he is so chargeable.

F191A

A person falls within this subsection if the person has not received a notice under section 8 requiring a return for the year of assessment of the person's total income and chargeable gains.

1B

A person falls within this subsection if the person—

a

has received a notice under section 8 requiring a return for the year of assessment of the person's total income and chargeable gains, and

b

has received a notice under section 8B withdrawing the notice under section 8.

1C

In subsection (1) “the notification period” means—

a

in the case of a person who falls within subsection (1A), the period of 6 months from the end of the year of assessment, or

b

in the case of a person who falls within subsection (1B)—

i

the period of 6 months from the end of the year of assessment, or

ii

the period of 30 days beginning with the day after the day on which the notice under section 8 was withdrawn,

whichever ends later.

2

In the case of F2persons who are chargeable as mentioned in subsection (1) above as F3the relevant trustees of a settlement, that subsection F20and subsections (1A) to (1C) have effect as if references to a notice under section 8 were references to a notice under section 8A.

3

A person shall not be required to give notice under subsection (1) above in respect of a year of assessment if for that yearF16—

a

the person's total income consists of income from sources falling within subsections (4) to (7) below,

b

the person has no chargeable gains, and

c

the person is not liable to a high income child benefit charge.

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 F9PAYE 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 F9PAYE 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 F10Chapter 3 of Part 4 of ITTOIA 2005 (dividends etc. from UK resident companies etc.),

and that person is not for that year liable to tax at a rate other than the basic rateF6, the F11dividend ordinary rateF14or the starting rate for savings.

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 F5income 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.

F158

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

F49

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

a

in relation to income F7(other than gains treated as arising under F12Chapter 9 of Part 4 of ITTOIA 2005), the persons who are trustees when the income arises and any persons who subsequently become trustees; and

F8aa

in relation to gains treated as arising under F13Chapter 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.