Finance Act 2008

Part 6 U.K. Special cases

Supply of goods or services etc U.K.

34 (1) This paragraph applies to a taxpayer notice or third party notice that refers only to information or documents that form part of any person's statutory records and relate to— U.K.

(a) the supply of goods or services,

(b) the acquisition of goods from another member State, or

(c) the importation of goods from a place outside the member States in the course of carrying on a business.

(2) Paragraph 3(1) (requirement for consent to, or approval of, third party notice) does not apply to such a notice.

(3) Where a person is given such a notice, the person may not appeal F1 ... against the notice or any requirement in the notice.

(4) Sections 5, 11 and 15 of, and Schedule 4 to, VATA 1994, and any orders made under those provisions, apply for the purposes of this paragraph as if it were part of that Act.

Textual Amendments

F1 Words in Sch. 36 para. 34(3) omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 471(11)

Commencement Information

I1 Sch. 36 para. 34 in force at 1.4.2009 by S.I. 2009/404, art. 2

Groups of undertakings U.K.

35 (1) This paragraph applies where an undertaking is a parent undertaking in relation to another undertaking (a subsidiary undertaking). U.K.

(2) Where a third party notice is given to any person for the purpose of checking the tax position of the parent undertaking and any of its subsidiary undertakings,[F2 —

(a) paragraph 2(2)] only requires the notice to state this and name the parent undertaking [F3 , and

(b) the references in paragraph 3(5) to naming the taxpayer are to making that statement and naming the parent undertaking.]

(3) In relation to such a notice—

(a) in paragraphs 3 and 4 (approval etc of notices and copying third party notices to taxpayer), the references to the taxpayer have effect as if they were references to the parent undertaking, but

(b) in paragraph 30(2) (no appeal in relation to taxpayer's statutory records), the reference to the taxpayer has effect as if it were a reference to the parent undertaking and each of its subsidiary undertakings.

[F4 (4) Where a third party notice is given to the parent undertaking for the purpose of checking the tax position of more than one subsidiary undertaking—

(a) paragraph 2(2) only requires the notice to state this, and

(b) the references in paragraph 3(5) to naming the taxpayer are to making that statement.

(4A) In relation to such a notice—

(a) in paragraph 3 (approval etc of notices), sub-paragraphs (1) and (3)(e) do not apply,

(b) paragraph 4(1) (copying third party notices to taxpayer) does not apply,

(c) paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made return) applies as if the notice was a taxpayer notice or taxpayer notices given to each subsidiary undertaking (or, if the notice names the subsidiary undertakings to which it relates, to each of those undertakings),

(d) paragraph 30(1) (appeal) has effect as if it permitted an appeal on any grounds, and

(e) in paragraph 30(2) (no appeal in relation to taxpayer's statutory records), the reference to the taxpayer has effect as if it were a reference to the parent undertaking or any of its subsidiary undertakings.]

(5) Where a notice is given under paragraph 5 to the parent undertaking for the purpose of checking the tax position of one or more subsidiary undertakings whose identities are not known to the officer giving [F5 —

(a) sub-paragraphs (3) and (4) of that paragraph (approval of tribunal) have effect as if they permitted, but did not require, the officer to obtain the approval of the tribunal, and

(b) paragraph 31 (appeal) has effect as if it permitted an appeal on any grounds, but the parent undertaking may not appeal against a requirement in the notice to produce any document that forms part of the statutory records of the parent undertaking or any of its subsidiary undertakings.]

F6 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) In this paragraph “parent undertaking”, “subsidiary undertaking” and “undertaking” have the same meaning as in the Companies Acts (see sections 1161 and 1162 of, and Schedule 7 to, the Companies Act 2006 (c. 46)).

Textual Amendments

F2 Words in Sch. 36 para. 35(2) substituted (21.7.2009) by Finance Act 2009 (c. 10), Sch. 47 para. 10(2)(a)

F3 Sch. 36 para. 35(2)(b) and word inserted (21.7.2009) by Finance Act 2009 (c. 10), Sch. 47 para. 10(2)(b)

F4 Sch. 36 para. 35(4) (4A) substituted for Sch. 36 para. 35(4) (21.7.2009) by Finance Act 2009 (c. 10), Sch. 47 para. 10(3)

F5 Words in Sch. 36 para. 35(5) substituted (21.7.2009) by Finance Act 2009 (c. 10), Sch. 47 para. 10(4)

F6 Sch. 36 para. 35(6) omitted (21.7.2009) by virtue of Finance Act 2009 (c. 10), Sch. 47 para. 10(5)

Commencement Information

I2 Sch. 36 para. 35 in force at 1.4.2009 by S.I. 2009/404, art. 2

Change of ownership of companies U.K.

36 (1) Sub-paragraph (2) applies where it appears to the Commissioners that— U.K.

(a) there has been a change in the ownership of a company, and

(b) in connection with that change a person (“the seller”) may be or become liable to be assessed and charged to corporation tax under section 767A or 767AA of ICTA.

(2) Paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made tax return) does not apply in relation to a taxpayer notice given to the seller.

(3) Section 769 of ICTA applies for the purposes of determining when there has been a change in the ownership of a company.

Commencement Information

I3 Sch. 36 para. 36 in force at 1.4.2009 by S.I. 2009/404, art. 2

Partnerships U.K.

37 (1) This paragraph applies where a business is carried on by two or more persons in partnership. U.K.

[F7 (2) Where, in respect of a chargeable period, any of the partners has—

(a) made a tax return under section 12AA of TMA 1970 (partnership returns), or

(b) made a claim or election in accordance with section 42(6)(b) of TMA 1970 (partnership claims and elections),

paragraph 21 (restrictions where taxpayer has made tax return) has effect as if that return, claim or election had been made by each of the partners.]

(3) Where a third party notice is given F8 ... for the purpose of checking the tax position of more than one of the partners (in their capacity as such), [F9 —

(a) paragraph 2(2)] only requires the notice to state this and give a name in which the partnership is registered for any purpose [F10 , and

(b) the references in paragraph 3(5) to naming the taxpayer are to making that statement and naming the partnership.]

(4) In relation to such a notice [F11 given to a person other than one of the partners]—

(a) in paragraphs 3 and 4 (approval etc of notices and copying third party notices to taxpayer), the references to the taxpayer have effect as if they were references to at least one of the partners, and

(b) in paragraph 30(2) (no appeal in relation to taxpayer's statutory records), the reference to the taxpayer has effect as if it were a reference to [F12 any of the partners in the partnership].

[F13 (5) In relation to a third party notice given to one of the partners for the purpose of checking the tax position of one or more of the other partners (in their capacity as such)—

(a) in paragraph 3 (approval etc of notices), sub-paragraphs (1) and (3)(e) do not apply,

(b) paragraph 4(1) (copying third party notices to taxpayer) does not apply,

(c) paragraph 30(1) (appeal) has effect as if it permitted an appeal on any grounds, and

(d) in paragraph 30(2) (no appeal in relation to taxpayer's statutory records), the reference to the taxpayer has effect as if it were a reference to any of the partners in the partnership.]

(6) Where a notice is given under paragraph 5 to one of the partners for the purpose of checking the tax position of one or more of the other partners whose identities are not known to the officer giving the notice [F14 —

(a) sub-paragraphs (3) and (4) of that paragraph (approval of tribunal) have effect as if they permitted, but did not require, the officer to obtain the approval of the tribunal, and

(b) paragraph 31 (appeal) has effect as if it permitted an appeal on any grounds, but the partner to whom the notice is given may not appeal against a requirement in the notice to produce any document that forms part of that partner's statutory records.]

F15 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7 Sch. 36 para. 37(2) substituted (21.7.2009) by Finance Act 2009 (c. 10), Sch. 47 para. 11(2)

F8 Words in Sch. 36 para. 37(3) omitted (21.7.2009) by virtue of Finance Act 2009 (c. 10), Sch. 47 para. 11(3)(a)

F9 Words in Sch. 36 para. 37(3) substituted (21.7.2009) by Finance Act 2009 (c. 10), Sch. 47 para. 11(3)(b)

F10 Sch. 36 para. 37(3)(b) and word inserted (21.7.2009) by Finance Act 2009 (c. 10), Sch. 47 para. 11(3)(c)

F11 Words in Sch. 36 para. 37(4) inserted (21.7.2009) by Finance Act 2009 (c. 10), Sch. 47 para. 11(4)(a)

F12 Words in Sch. 36 para. 37(4)(b) substituted (21.7.2009) by Finance Act 2009 (c. 10), Sch. 47 para. 11(4)(b)

F13 Sch. 36 para. 37(5) substituted (21.7.2009) by Finance Act 2009 (c. 10), Sch. 47 para. 11(5)

F14 Sch. 36 para. 37(6)(a)(b) substituted for words (21.7.2009) by Finance Act 2009 (c. 10), Sch. 47 para. 11(6)

F15 Sch. 36 para. 37(7) omitted (21.7.2009) by virtue of Finance Act 2009 (c. 10), Sch. 47 para. 11(7)

Commencement Information

I4 Sch. 36 para. 37 in force at 1.4.2009 by S.I. 2009/404, art. 2

[F16 Information in connection with herd basis election U.K.

Textual Amendments

F16 Sch. 36 paras. 37A, 37B and cross-headings inserted (21.7.2009) by Finance Act 2009 (c. 10), Sch. 47 para. 12

37A (1) This paragraph applies to a taxpayer notice given to a person carrying on a trade in relation to which a herd basis election is made if the notice refers only to information or documents that relate to— U.K.

(a) the animals kept for the purposes of the trade, or

(b) the products of those animals.

(2) Paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made tax return) does not apply in relation to the notice.

(3) “Herd basis election” means an election under Chapter 8 of Part 2 of ITTOIA 2005 or Chapter 8 of Part 3 of CTA 2009.

Information from persons liable to counteraction of tax advantage U.K.

37B (1) This paragraph applies to a taxpayer notice given to a person if— U.K.

(a) it appears to an officer of Revenue and Customs that a counteraction provision may apply to the person by reason of one or more transactions, and

(b) the notice refers only to information or documents relating to the transaction (or, if there are two or more transactions, any of them).

(2) Paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made tax return) does not apply in relation to the notice.

(3) “Counteraction provision” means—

(a) section 703 of ICTA (company liable to counteraction of corporation tax advantage), or

(b) section 684 of ITA 2007 (person liable to counteraction of income tax advantage).]

Application to the Crown U.K.

38 U.K. This Schedule (other than Part 8) applies to the Crown, but not to Her Majesty in Her private capacity (within the meaning of the Crown Proceedings Act 1947 (c. 44)).

Commencement Information

I5 Sch. 36 para. 38 in force at 1.4.2009 by S.I. 2009/404, art. 2