Finance Act 2022

Duty to preserve records U.K.

22 (1) A person liable to tax must—

(a) keep such records as may be needed to enable the person to deliver a correct and complete return in respect of the tax, and

(b) preserve those records in accordance with this paragraph.

(2) The records must be preserved until the end of the relevant day.

(3) In this paragraph “relevant day” means–

(a) in relation to a person liable to tax as a result of paragraph 1, the later of—

(i) the sixth anniversary of the day on which the person became liable to tax,

(ii) the day on which any enquiry into a return made and delivered by the person is completed, and

(iii) the day on which an officer of Revenue and Customs no longer has power to enquire into such a return,

(b) in relation to a person liable to tax as a result of paragraph 4 or 5, the later of—

(i) the sixth anniversary of the day on which the person was given a notice under paragraph 9(1),

(ii) the day on which an officer of Revenue and Customs no longer has power to give such a notice (see paragraph 10(1)),

(iii) the day on which any enquiry into a return made and delivered by the person is completed, and

(iv) the day on which an officer of Revenue and Customs no longer has power to enquire into such a return, and

(c) such earlier day as may be specified in writing by the Commissioners for Her Majesty’s Revenue and Customs (and different days may be specified for different cases).

(4) The Commissioners for Her Majesty’s Revenue and Customs may by regulations—

(a) provide that the records required to be kept and preserved under this paragraph include, or do not include, records specified in the regulations, and

(b) provide that those records include supporting documents (including accounts, books, deeds, contracts, vouchers and receipts) so specified.

(5) Regulations under this paragraph may—

(a) make different provision for different cases, and

(b) make provision by reference to things specified in a notice published by the Commissioners for Her Majesty’s Revenue and Customs in accordance with the regulations (and not withdrawn by a subsequent notice).

(6) The duty under this paragraph to preserve records may be discharged—

(a) by preserving them in any form and by any means, or

(b) by preserving the information contained in them in any form and by any means,

subject to any conditions or exceptions specified in writing by the Commissioners for Her Majesty’s Revenue and Customs.

(7) A person who fails to comply with this paragraph is liable to a penalty not exceeding £3,000.

(8) But no penalty is incurred if the records which the person fails to keep or preserve are records which might have been needed only for the purposes of a claim under this Schedule.

(9) Sections 100 to 103 of TMA 1970 apply to a penalty under this paragraph as they apply to a penalty under a provision of the Taxes Acts to which those sections apply.