Taxes Management Act 1970

93 Failure to make return for income tax or capital gains tax. [1960 s.46(1), Sch.VI column 1; 1964(M) 7(8); 1965 Sch.X 1(1).] U.K.

(1) If any person has been required by a notice served under or for the purposes of section 8 or [8A or 9 of this Act or any F1 ] of those sections as extended by section 12 of this Actor section[284(4) F2 ] of the principal Act (husband and wifeF3 )) to deliver any return, and he fails to comply with the notice he shall be liable, subject to the provisions of this section—

[(a) to a penalty not exceeding £300, and

(b) if the failure continues after a penalty is imposed under paragraph (a) 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 (a) above was imposed (but excluding any day for which a penalty under this paragraph has already been imposed) F4 .] F5 .

[(2) If a failure by a person to comply with a notice such as is referred to in subsection (1) above continues after the end of the year of assessment following that during which it was served then, without prejudice to any penalty under subsection (1) above, he shall be liable to a penalty of an amount not exceeding so much of the tax with which he is charged (whether for one or for more than one year of assessment) in assessments—

(a) based wholly or partly on any income or chargeable gains that ought to have been included in the return required by the notice, and

(b) made after the end of the year next following the year of assessment in which the notice was served,

as is attributable to the income or chargeable gains that ought to have been so included F4 .] F5

M1 (3) Where in any year of assessment any amount was deducted from the said person’s emoluments under section [203 F2 ] of the principal Act (pay as you earn), and that amount exceeds the total amount (if any) charged in any assessments under Schedule E made on him for that year before the end of the year of assessment next following that in which the said notice was served, the amount of excess shall be treated, for the purposes of subsection (2) of this section, as reducing the amount of the tax charged in assessments under Schedule E made on him for the first-mentioned year after the end of the said following year.

M2 (4) [In relation to areturn required for the purposes of section 9 of this Act the reference in subsection (2) above to tax F6 ] does not include any tax not chargeable in the partnership name, and in relation to a person’s failure to deliver any other return it does not include tax assessed in the name of a partnership on so much of the profits or gains assessed as falls to be included in the total income of any other person.

[(5) No penalty shall be imposed under subsection (1) above in respect of a failure at any time after the failure has been remedied F7 .]

M3 (6) Where a person is liableto more than one penalty of an amount determined under subsection (2) above, any assessment taken into account for the purposes of one of those penalties shall be left out of account for the purposes of the other or others.

[(7) If the person on whom a notice is served proves that there was no income or chargeable gain to be included in the return, the penalty under this section shall not exceed £100 F8 .]

(8) references in this section[[1960 s.63(5); 1965 Sch.X 1(1).]] to the amount of tax with which a person is charged for any year of assessment and to assessments made on him include, in the case of a person who has died, references to any amount with which his personal representatives are charged for that year and to assessments made on them.

Textual Amendments

F1 Finance Act 1990 s. 90(3)where a notice to deliver a return was, or falls to be, given after 5 April 1990. Previously

“9 of this Act (or either”.

F2 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 32.

F3 Repealed by Finance Act 1988 (c. 39, SIF 63:1,2) s. 148and Sch. 14 Part VIIIfor 1990-91and subsequent years.

F4 Finance Act 1989 s. 162(2), (3)in relation to any failure to comply with a notice served on or after 6 April 1989. Previously

“(a) to a penalty not exceeding, except in the case mentioned in subsection (2) below, £50, and (b) if the failure continues after it has been declared by the court or Commissioners before whom proceedings for the penalty have been commenced, to a further penalty not exceeding £10 for each day on which the failure so continues”

in subs. (1)and

“(2) If the failure continues after the end of the year of assessment following that during which the notice was served, the penalty under subsection (1)(a) above shall be an amount not exceeding the aggregate of £50 and the total amount of the tax with which the said person is charged (whether for one or for more than one year of assessment) in assessments— (a) based wholly or partly on any income or chargeable gains that ought to have been included in the return required by the notice, and (b) made after the end of the year next following the year of assessment in which the said notice was served.”

in subs. (2).

F5 See Finance Act 1988 (c. 39, SIF 63:1,2) s. 35and Sch. 3 paras. 27and 28—married couples.

F6 Finance Act 1971 ss.37, 38andSch.6 para.89with effect for1973—74et seq.

F7 Finance Act 1989 s. 162(4)in relation to any failure to comply with a notice served on or after 6 April 1989. Previously

“(5) Except in the case mentioned in subsection (2) above, a person shall not be liable to any penalty incurred under this section for a failure to comply with any notice, if the failure is remedied before proceedings for the recovery of the penalty are commenced.”

F8 Finance Act 1989 s. 162(5)in relation to any failure to comply with a notice served on or after 6 April 1989. Previously

“(7) If the defendant (or, in Scotland, the defender) in proceedings under this section proves that there was no income and no chargeable gains to be included in the return, the penalty shall not exceed £5.”

Marginal Citations

M1 1960

s.46(3).

M2 1960 s.46(4).

M3 1960 s.46(6); 1965 Sch.X 1(1).