1U.K.TMA 1970 is amended in accordance with paragraphs 2 to 5.
2(1)Section 7 (notice of liability to income tax and capital gains tax) is amended as follows.U.K.
(2)In subsection (1)—
(a)for paragraph (b) substitute—
“(b)falls within subsection (1A) or (1B),”, and
(b)for “six months from the end of that year” substitute “ the notification period ”.
(3)After subsection (1) insert—
“(1A)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(ii)the period of 30 days beginning with the day after the day on which the notice under section 8 was withdrawn,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.”
(4)In subsection (2), for the words from “shall have effect” to the end substitute “ and subsections (1A) to (1C) have effect as if references to a notice under section 8 were references to a notice under section 8A. ”
3U.K.After section 8A insert—
(1)This section applies to a person who is given a notice under section 8 or 8A.
(2)Before the end of the withdrawal period, the person may request HMRC to withdraw the notice.
(3)But no request may be made if—
(a)the person has made a return under section 8 or 8A in pursuance of the notice under that section, or
(b)the person has been served with notice of a determination under section 28C by virtue of the notice under section 8 or 8A having been given to the person.
(4)If, on receiving a request, HMRC decide to withdraw the notice under section 8 or 8A they must do so by giving the person a notice under this section.
(5)A notice under this section must specify the date on which the notice under section 8 or 8A is withdrawn.
(6)For the purposes of subsection (2) “the withdrawal period” means—
(a)the period of 2 years beginning with the end of the year of assessment to which the notice under section 8 or 8A relates, or
(b)in exceptional circumstances, such extended period as HMRC may agree with the person.
(7)Withdrawal of a notice given to a person under section 8 or 8A in relation to a year of assessment does not prevent HMRC from giving the person a further notice under that section in relation to that year.
(8)See paragraph 17A of Schedule 55 to FA 2009 as to the cancellation of liability to a penalty under any paragraph of that Schedule by including provision in a notice under this section.”
4U.K.After section 12AA insert—
(1)This section applies to a partner who is required by a notice under section 12AA to deliver a return.
(2)Before the end of the withdrawal period, the partner may request HMRC to withdraw the notice.
(3)But no request may be made if the partner has delivered a return under section 12AA in pursuance of the notice.
(4)If, on receiving a request, HMRC decide to withdraw the notice under section 12AA they must do so by giving the partner a notice under this section.
(5)A notice under this section must specify the date on which the notice under section 12AA is withdrawn.
(6)For the purposes of subsection (2) “the withdrawal period” means—
(a)in the case of a partnership which includes one or more companies, the period of 2 years beginning with the end of the period in respect of which the return under section 12AA was required by the notice under that section,
(b)in the case of any other partnership, the period of 2 years beginning with the end of the year of assessment to which the notice under section 12AA relates, or
(c)in the case of any partnership, such extended period as HMRC may agree with the partner in exceptional circumstances.
(7)Withdrawal of a notice under section 12AA in relation to the period in respect of which the return under that section was required or year of assessment (as the case may be) does not prevent HMRC from serving a further notice under section 12AA requiring a partner to deliver a return in relation to that period or year.
(8)References in subsections (2) to (6) to the partner include references to a successor of the partner (see section 12AA(11)).
(9)See paragraph 17B of Schedule 55 to FA 2009 as to the cancellation of liability to a penalty under any paragraph of that Schedule by including provision in a notice under this section.”
5U.K.In section 59B (payment of income and capital gains tax), after subsection (4) insert—
“(4ZA)In a case in which the notice required by section 7 was given following the receipt of a notice under section 8B, subsections (3) and (4) apply as if—
(a)the reference to the notice required by section 7 were a reference to the original notice required by that section, and
(b)the references to notice under section 8 or 8A were references to the original notice under that section.
(4ZB)In subsection (4ZA) the references to original notices are to notices given before the notice under section 8B.”