(1) Where in the opinion of the Board the liability of any person for a penalty arises by reason of the fraud of that person or any other person, proceedings for the penalty may be instituted before the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland.
(2) Proceedings under this section which are not instituted (in England, Wales or Northern Ireland) under the Crown Proceedings Act 1947 by and in the name of the Board as an authorised department for the purposes of that Act shall be instituted—
(a) in England and Wales, in the name of the Attorney General,
(b) in Scotland, in the name of the Lord Advocate, and
(c) in Northern Ireland, in the name of the Attorney General for Northern Ireland.
(3) Any proceedings under this section instituted in England and Wales shall be deemed to be civil proceedings by the Crown within the meaning of Part II of the Crown Proceedings Act 1947 and any such proceedings instituted in Northern Ireland shall be deemed to be civil proceedings within the meaning of that Part of that Act as for the time being in force in Northern Ireland.
(4) If in proceedings under this section the court does not find that fraud is proved but consider that the person concerned is nevertheless liable to a penalty, the court may determine a penalty notwithstanding that, but for the opinion of the Board as to fraud, the penalty would not have been a matter for the court.
101 Evidence for purposes of proceedings relating to penalties.
An assessment which can no longer be varied by the tribunal on an appeal notified to it or by order of any court is sufficient evidence, for the purposes of—
(a) the preceding provisions of this Part, and
(b) the provisions of Schedule 18 to the Finance Act 1998 relating to penalties,
that the amounts in respect of which tax is charged in the assessment arose or were received as stated in the assessment.
The Board may in their discretion mitigate any penalty, or stay or compound any proceedings for a penalty, and may also, after judgment, further mitigate or entirely remit the penalty.
(1) Subject to subsection (2) below, where the amount of a penalty is to be ascertained by reference to tax payable by a person for any period, the penalty may be determined by an officer of the Board, or proceedings for the penalty may be commenced before the tribunal or a Court—
(a) at any time within six years after the date on which the penalty was incurred, or
(b) at any later time within three years after the final determination of the amount of tax by reference to which the amount of the penalty is to be ascertained.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) A penalty to which subsection (1) does not apply may be so determined, or proceedings for such a penalty may be commenced before the tribunal or a court, at any time within six years after the date on which the penalty was incurred or began to be incurred.
103ZA Disapplication of sections 100 to 103 in the case of certain penalties
Sections 100 to 103 do not apply to a penalty under—
(a) Schedule 24 to FA 2007 (penalties for errors),
(b) Schedule 36 to FA 2008 (information and inspection powers),
(c) Schedule 41 to that Act (penalties for failure to notify and certain other wrongdoing),
(d) Schedule 55 to FA 2009 (penalties for failure to make returns etc), ...
(e) Schedule 56 to that Act (penalties for failure to make payments on time), ...
(f) Schedule 23 to FA 2011 (data-gathering powers), ...
(g) Schedule 38 to FA 2012 (tax advisers: sanctionable conduct), ...
(ga) section 212A of the Finance Act 2013 (general anti-abuse rule), ...
(h) Part 4 of the Finance Act 2014 (follower notices and accelerated payments) ...
(i) Part 5 of Schedule 18 to the Finance Act 2016 (serial tax avoidance), ...
(j) Schedule 22 to the Finance Act 2016 (asset-based penalty) ...
(k) paragraph 1 or 45 of Schedule 16 to the Finance (No. 2) Act 2017 (enablers of defeated tax avoidance etc) , ...
(l) Schedule 18 to the Finance Act 2017.
(m) Schedule 24 to the Finance Act 2021 (penalties for failure to make returns etc),
(n) Schedule 25 to that Act (penalties for deliberately withholding information), or
(o) Schedule 26 to that Act (penalties for failure to pay tax).
A penalty under any of the provisions of Part II, IV or VA or this Part of this Act ... , or Schedule 18 to the Finance Act 1998, shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date on which it becomes due and payable until payment.
105 Admissibility of evidence not affected by offer of settlement etc.
(1) Statements made or documents produced by or on behalf of a person shall not be inadmissable in any such proceedings as are mentioned in subsection (2) below by reason only that it has been drawn to his attention —
(a) that where serious tax fraud has been committed the Board may accept a money settlement and that the Board will accept such a settlement, and will not pursue a criminal prosecution, if he makes a full confession of all tax irregularities, or
(b) that the extent to which he is helpful and volunteers information is a factor that will be taken into account in determining the amount of any penalty,
and that he was or may have been induced thereby to make the statements or produce the documents.
(2) The proceedings mentioned in subsection (1) above are—
(a) any criminal proceedings against the person in question for any form of fraudulent conduct in connection with or in relation to tax, and
(b) any proceedings against him for the recovery of any tax due from him and
(c) any proceedings for a penalty or on appeal against the determination of a penalty.
106 Refusal to allow a deduction of income tax, and avoidance of agreements for payment without deduction.
(1) A person who refuses to allow a deduction of income tax authorised by the Taxes Acts to be made out of any payment shall incur a penalty of £50.
(2) Every agreement for payment of interest, rent or other annual payment in full without allowing any such deduction shall be void.
(1) A person commits an offence if that person is knowingly concerned in the fraudulent evasion of income tax by that or any other person.
(2) A person guilty of an offence under this section is liable—
(a) on summary conviction, to imprisonment for a term not exceeding 12 months the general limit in a magistrates’ court or a fine not exceeding the statutory maximum, or both, or
(b) on conviction on indictment, to imprisonment for a term not exceeding 14 years or a fine, or both.
(3) In the application of subsection (2)(a)—
(a) in England and Wales in relation to offences committed before 2 May 2022, and
(b) in Northern Ireland,
for “12 months the general limit in a magistrates’ court” substitute “6 months”.
(4) This section does not apply to things done or omitted before 1st January 2001.
106B Offence of failing to give notice of being chargeable to tax
(1) A person who is required by section 7 to give notice of being chargeable to income tax or capital gains tax (or both) for a year of assessment and who has not given that notice by the end of the notification period commits an offence if—
(a) the tax in question is chargeable (wholly or in part) on or by reference to offshore income, assets or activities, and
(b) the total amount of income tax and capital gains tax that is chargeable for the year of assessment on or by reference to offshore income, assets or activities exceeds the threshold amount.
(2) It is a defence for a person accused of an offence under this section to prove that the person had a reasonable excuse for failing to give the notice required by section 7.
(3) In this section “the notification period” has the same meaning as in section 7 (see subsection (1C) of that section).
(1) A person who is required by a notice under section 8 to make and deliver a return for a year of assessment commits an offence if—
(a) the return is not delivered by the end of the withdrawal period,
(b) an accurate return would have disclosed liability to income tax or capital gains tax (or both) that is chargeable for the year of assessment on or by reference to offshore income, assets or activities, and
(c) the total amount of income tax and capital gains tax that is chargeable for the year of assessment on or by reference to offshore income, assets or activities exceeds the threshold amount.
(2) It is a defence for a person accused of an offence under this section to prove that the person had a reasonable excuse for failing to deliver the return.
(3) In this section “the withdrawal period” has the same meaning as in section 8B (see subsection (6) of that section).
(1) A person who is required by a notice under section 8 to make and deliver a return for a year of assessment commits an offence if, at the end of the amendment period—
(a) the return contains an inaccuracy the correction of which would result in an increase in the amount of income tax or capital gains tax (or both) that is chargeable for the year of assessment on or by reference to offshore income, assets or activities, and
(b) the amount of that increase exceeds the threshold amount.
(2) It is a defence for a person accused of an offence under this section to prove that the person took reasonable care to ensure that the return was accurate.
(3) In this section “the amendment period” means the period for amending the return under section 9ZA.
106E Exclusions from offences under sections 106B to 106D
(1) A person is not guilty of an offence under section 106B, 106C or 106D if the capacity in which the person is required to give the notice or make and deliver the return is—
(a) as a relevant trustee of a settlement, or
(b) as the executor or administrator of a deceased person.
(2) The Treasury may by regulations provide that a person is not guilty of an offence under section 106B, 106C or 106D if—
(a) conditions specified in the regulations are met, or
(b) circumstances so specified exist.
(3) The conditions may (in particular) include conditions in relation to the income, assets or activities on or by reference to which the tax in question is chargeable.
106F Offences under sections 106B to 106D: supplementary provision
(1) Where a period of time is extended under subsection (2) of section 118 by HMRC, the tribunal or an officer (but not where a period is otherwise extended under that subsection), any reference in section 106B, 106C or 106D to the end of the period is to be read as a reference to the end of the period as so extended.
(2) The Treasury may by regulations specify the amount (which must not be less than £25,000) that is to be the threshold amount for the purposes of sections 106B to 106D.
(3) The Treasury may by regulations make provision as to the calculation for the purposes of sections 106B to 106D of—
(a) the amount of tax that is chargeable on or by reference to offshore income, assets or activities, and
(b) the increase in the amount of tax that is so chargeable as a result of correcting an inaccuracy.
(4) In sections 106B to 106D and this section “offshore income, assets or activities” means—
(a) income arising from a source in a territory outside the United Kingdom,
(b) assets situated or held in a territory outside the United Kingdom, or
(c) activities carried on wholly or mainly in a territory outside the United Kingdom.
(5) In subsection (4), “assets” has the meaning given in section 21(1) of the 1992 Act, but also includes sterling.
106G Penalties for offences under sections 106B to 106D
(1) A person guilty of an offence under section 106B, 106C or 106D is liable on summary conviction—
(a) in England and Wales, to a fine or to imprisonment for a term not exceeding 51 weeks or to both, and
(b) in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale or to imprisonment for a term not exceeding 6 months or to both.
(2) In relation to an offence committed before the coming into force of section 281(5) of the Criminal Justice Act 2003, the reference in subsection (1)(a) to 51 weeks is to be read as a reference to 6 months.
(1) This section makes provision about regulations under sections 106E and 106F.
(2) If the regulations contain a reference to a document or any provision of a document and it appears to the Treasury that it is necessary or expedient for the reference to be construed as a reference to that document or that provision as amended from time to time, the regulations may make express provision to that effect.
(3) The regulations—
(a) may make different provision for different cases, and
(b) may include incidental, supplemental, consequential and transitional provision and savings.
(4) The regulations are to be made by statutory instrument.
(5) An instrument containing the regulations is subject to annulment in pursuance of a resolution of the House of Commons.
107 Criminal liability for false statements made to obtain allowances.
(1) This section applies only in Scotland.
(2) If any person, for the purpose of obtaining any allowance, reduction, rebate or repayment in respect of tax, either for himself or for any other person, or, in any return made with reference to tax, knowingly makes any false statement or false representation, he shall be liable, on summary conviction, to imprisonment for a term not exceeding six months.
(3) Notwithstanding anything in the Summary Jurisdiction (Scotland) Act 1954, proceedings for an offence under this section may be commenced at any time within three years from the time when the offence was committed.
(4) The expression “return” in this section shall be construed without regard to the definition in section 118(1) of this Act .
(1) Subject to the following provisions of this section, anything which for the purposes of this Act is done at any time by or in relation to any one or more of the relevant trustees of a settlement shall be treated for those purposes as done at that time by or in relation to the other or others of those trustees.
(2) Subject to subsection (3) below, where the relevant trustees of a settlement are liable—
(a) to a penalty under section ... 12B ... ... of this Act or paragraph 2A of Schedule 1A to this Act or Schedule 24 to the Finance Act 2007 or Schedule 41 to the Finance Act 2008 or Schedule 55 to the Finance Act 2009 or Schedule 18 to the Finance Act 2017 or Schedule 22 to the Finance Act 2016 or Schedule 25 to the Finance Act 2021, or to interest under section 101 of the Finance Act 2009 on such a penalty;
(b) to make a payment in accordance with an assessment under section 30 of this Act, or to make a payment under section 59A ... or 59B of this Act or under Schedule 2 to the Finance Act 2019;
(c) to a penalty under Schedule 56 to the Finance Act 2009 or Schedule 26 to the Finance Act 2021, or to interest under section 101 of that Act the Finance Act 2009 on such a penalty;; or
(d) to interest under section 86 of this Act or section 101 of the Finance Act 2009,
the penalty, interest or payment may be recovered (but only once) from any one or more of those trustees.
(3) No amount may be recovered by virtue of subsection (2)(a) or (c) above from a person who did not become a relevant trustee until after the relevant time, that is to say—
(a) in relation to—
(i) a penalty under paragraph 4 of Schedule 55 to the Finance Act 2009 in respect of a return or other document falling within item 1, 2 or 3 of the Table in paragraph 1 of that Schedule, or
(ii) interest under section 101 of that Act on a penalty within sub-paragraph (i),
the beginning of the penalty date as defined in paragraph 1(4) of that Schedule;
(aa) in relation to a penalty under Schedule 22 to the Finance Act 2016, or to interest under section 101 of the Finance Act 2009 on such a penalty, the time when the relevant act or omission occurred;
(b) in relation to a penalty under any ... provision of this Act mentioned in subsection (2)(a) above, or to interest under section 101 of the Finance Act 2009 on such a penalty, the time when the relevant act or omission occurred; and
(c) in relation to—
(i) a penalty under Schedule 56 to the Finance Act 2009 in respect of an amount falling within item 1, 3C, 12, 18 or 19 3C of the Table in paragraph 1 of that Schedule, ...
(ii) a penalty under that Schedule in respect of an amount falling within item 17, 23 or 24 of that Table so far as the tax falls within item 1, or
(iii) interest under section 101 of that Act on a penalty within sub-paragraph (i) or (ii),
the beginning of the penalty date as defined in paragraph 1(4) of that Schedule;
(d) in relation to—
(i) a penalty under Schedule 18 to the Finance Act 2017, or
(ii) interest under section 101 of the Finance Act 2009 on a penalty within sub-paragraph (i),
the end of the RTC period (within the meaning of Schedule 18 to the Finance Act 2017);
(e) in relation to—
(i) a penalty under Schedule 26 to the Finance Act 2021 (penalties for failure to pay tax), or
(ii) interest under section 101 of the Finance Act 2009 on a penalty within sub-paragraph (i),
the end of the specified date as defined in paragraph 1 of Schedule 26 to the Finance Act 2021;
and in paragraph (aa) and (b) above “the relevant act or omission” means the act or omission which caused the penalty to become payable.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) Everything to be done by a company under the Taxes Acts shall be done by the company acting through the proper officer of the company or, except where a liquidator has been appointed for the company, through such other person as may for the time being have the express, implied or apparent authority of the company to act on its behalf for the purpose, and service on a company of any document under or in pursuance of the Taxes Acts may be effected by serving it on the proper officer.
This subsection is without prejudice to Part VIII of this Act (charges on non-residents) as it applies to corporation tax.
(2) Corporation tax or other tax chargeable under the Corporation Tax Acts on a company which is not a body corporate, or which is a body corporate not incorporated under any enactment forming part of the law of the United Kingdom, or by Charter, may, at any time after the tax becomes due, and without prejudice to any other method of recovery, be recovered from the proper officer of the company, and that officer may retain out of any money coming into his hands on behalf of the company sufficient sums to pay that tax, and, so far as he is not so reimbursed, shall be entitled to be indemnified by the company in respect of the liability so imposed on him.
(3) For the purposes of this section—
(a) the proper officer of a company which is a body corporate shall be the secretary or person acting as secretary of the company, except that if a liquidator or administrator has been appointed for the company the liquidator or, as the case may be, administrator shall be the proper officer,
(b) the proper officer of a company which is not a body corporate or for which there is no proper officer within paragraph (a) above, shall be the treasurer or the person acting as treasurer, of the company .
(4) For the purposes of subsection (3)(a), where two or more persons are appointed to act jointly or concurrently as the administrator of a company, the proper officer is—
(a) such one of them as is specified in a notice given to the Board by those persons for the purposes of this section, or
(b) where the Board is not so notified, such one or more of those persons as the Board may designate as the proper officer for those purposes.
109 Corporation tax on close company in connection with loans or benefits to participators etc.
(1) The provisions of sections 455 to 459 and 464A and 464B of CTA 2010 (charge of tax in connection with loans or benefits to participators etc.) directing that tax be assessed and recoverable as if it were an amount of corporation tax shall be taken as applying, subject to the provisions of the Taxes Acts, and to any necessary modifications, all enactments applying generally to corporation tax, including those relating to the assessing, collecting and receiving of corporation tax, those conferring or regulating a right of appeal and those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) For the purposes of section 87A of this Act as applied by subsection (1) above—
(a) the date when tax under section 455 of CTA 2010 became due and payable is that determined in accordance with subsection (3) of that section, and
(b) the date when tax under section 464A of CTA 2010 became due and payable is that determined in accordance with subsection (4) of that section.
(3A) If
(a) there is such a repayment of the whole or any part of a loan or advance as is referred to in subsection (2) of section 458 of CTA 2010, or
(b) there is such a release or writing off of the whole or any part of the debt in respect of a loan or advance as is referred to in that subsection,
interest under section 87A of this Act on so much of the tax under section 455 of CTA 2010 as is referable to the amount repaid, released or written off shall not be payable in respect of any period after the date on which the repayment was made or the release or writing off occurred.
(3B) If there is a payment which for the purposes of section 464B of CTA 2010 is a return payment in respect of a benefit conferred, interest under section 87A of this Act on so much of the tax under section 464A of CTA 2010 as is referable to the return payment is not payable in respect of any period after the date on which the return payment was made.
(4) Section 91 of this Act shall not apply in consequence of any discharge or repayment of tax under section 458 or 464B of CTA 2010.
(5) For the purposes of the said section 91, a relief from tax under sections 455 to 459 or 464A and 464B of CTA 2010 shall not be treated as affecting tax charged by any assessment unless the assessment is to tax under that section.
Chapter 3 of Part 2 of CTA 2009 (rules for determining residence of companies) applies for the purposes of this Act as it applies for the purposes of the Corporation Tax Acts.
109B Provisions for securing payment by company of outstanding tax
(1) Each of conditions A to D must be met before a company ceases to be resident in the United Kingdom, subject to subsection (5A).
(2) Condition A is that the company gives to the Commissioners for Her Majesty's Revenue and Customs notice of its intention to cease to be resident in the United Kingdom.
(3) Condition B is that the notice specifies the time (“the migration time”) when the company intends to cease to be resident in the United Kingdom.
(4) Condition C is that the company gives to the Commissioners—
(a) a statement of the amount which, in its opinion, is the amount of the tax which is or will be payable by it in respect of periods beginning before the migration time, and
(b) particulars of the arrangements which it proposes to make for securing the payment of that tax (which may include a proposal to enter into a CT exit charge payment plan in accordance with Schedule 3ZB).
(5) Condition D is that—
(a) arrangements are made by the company for securing the payment of the tax which is or will be payable by it in respect of periods beginning before the migration time, and
(b) those arrangements, as made by the company, are approved for the purposes of this subsection by the Commissioners.
(5A) Condition D does not apply to the extent that payment of the tax is to be secured by the company entering into a CT exit charge payment plan in accordance with Schedule 3ZB.
(6) If any question arises as to the amount which, for the purposes of subsection (5), should be regarded as the amount of tax which is or will be payable by the company in respect of periods beginning before the migration time, that question is to be referred to the tribunal.
(7) A decision of the tribunal under subsection (6) is final, despite sections 11 and 13 of the TCEA 2007 (appeals from tribunal decisions).
(8) If any information furnished by the company for the purpose of securing the Commissioners' approval under subsection (5) does not fully and accurately disclose all facts and considerations material for the Commissioners' decision under that subsection, any resulting approval is void.
109C Penalty for company's failure to comply with section 109B
If a company ceases to be resident in the United Kingdom at a time before each of conditions A to D in section 109B is met, the company is liable to a penalty not exceeding the amount of tax—
(a) which is or will be payable by it in respect of periods beginning before that time, and
(b) which has not been paid at that time.
109D Penalty for other persons if company fails to comply with section 109B
(1) Subsection (5) applies if—
(a) condition E is met, and
(b) either of conditions F and G is met.
(2) Condition E is that in relation to a company (“the migrating company”) any person (“P”) does or is party to the doing of any act which to P's knowledge amounts to or results in, or forms part of a series of acts which together amount to or result in, or will amount to or result in, the migrating company ceasing to be resident in the United Kingdom at a time before each of conditions A to D in section 109B is met.
(3) Condition F is that P is—
(a) a director of the migrating company,
(b) a company which has control of the migrating company, or
(c) a director of a company which has control of the migrating company.
(4) Condition G is that the act mentioned in subsection (2) is a direction or instruction given—
(a) to persons within subsection (3), but
(b) otherwise than by way of advice given by a person acting in a professional capacity.
(5) If this subsection applies, P is liable to a penalty not exceeding the amount of tax—
(a) which is or will be payable by the migrating company in respect of periods beginning before the time mentioned in subsection (2), and
(b) which has not been paid at that time.
(6) Subsections (7) and (8) apply for the purposes of any proceedings against a person within subsection (3) for the recovery of a penalty under subsection (5).
(7) It is to be presumed that the person was party to every act of the migrating company unless the person proves that it was done without the person's consent or connivance.
(8) It is to be presumed, unless the contrary is proved, that any early-migration act was to the person's knowledge an early-migration act.
(9) In subsection (8) “early-migration act” means an act which in fact amounted to or resulted in, or formed part of a series of acts which together amounted to or resulted in, or would amount to or result in, the migrating company ceasing to be resident in the United Kingdom at a time before each of conditions A to D in section 109B is met.
(1) This section applies if—
(a) a company (“the migrating company”) ceases to be resident in the United Kingdom at any time, and
(b) any tax which is payable by the company in respect of periods beginning before that time is not paid within 6 months from the time when it becomes payable.
(1A) The reference in subsection (1)(b) to the time when tax becomes payable is a reference to—
(a) in a case where a CT exit charge payment plan has been entered into in accordance with Schedule 3ZB in respect of the tax, the time when the tax becomes payable under the plan, and
(b) in any other case, the time when the tax becomes payable in accordance with section 59D or 59E.
(2) The Commissioners for Her Majesty's Revenue and Customs may, at any time before the end of the period of 3 years beginning with the relevant time, serve on any person within subsection (3) a notice—
(a) stating particulars of the tax payable, the amount remaining unpaid and the date when it became payable, and
(b) requiring that person to pay that amount within 30 days of the service of the notice.
(2A) In subsection (2) the “relevant time” means—
(a) in a case where a CT exit charge payment plan has been entered into in accordance with Schedule 3ZB in respect of the tax, the later of—
(i) the first day after the period of 12 months beginning immediately after the migration accounting period (as defined in Part 1 or 2 of Schedule 3ZB, as the case may be), and
(ii) the date on which the tax is payable under the plan, and
(b) in any other case, the time when the amount of the tax is finally determined.
(3) The persons within this subsection are—
(a) any company which is, or within the pre-migration year was, a member of the same group as the migrating company,
(b) any person who is, or within the pre-migration year was, a controlling director of the migrating company, and
(c) any person who is, or within the pre-migration year was, a controlling director of a company which has, or within the pre-migration year had, control over the migrating company.
(4) Any amount which a person is required to pay by a notice under this section may be recovered from the person as if it were tax due and duly demanded from the person.
(5) If a person (“P”) pays any amount which a notice under this section requires P to pay, P may recover the amount from the migrating company.
(6) A payment in pursuance of a notice under this section is not allowed as a deduction in calculating any income, profits or losses for any tax purposes.
(7) In this section—
“controlling director”, in relation to a company, means a director of the company who has control of the company,
“group” has the meaning which would be given by section 170 of the 1992 Act if in that section for references to 75 per cent subsidiaries there were substituted references to 51 per cent subsidiaries, and
“pre-migration year” means the period of 12 months ending with the time when the migrating company ceases to be resident in the United Kingdom.
(1) In sections 109B to 109E, any reference to the tax payable by a company includes a reference to—
(a) any amount which the company is liable to pay under section 77C (territorial extension of charge to tax),
(b) any amount of tax which the company is liable to pay under regulations made under section 684 of ITEPA 2003 (PAYE),
(c) any amount which the company is liable to pay under sections 61 and 62(1)(a) of the Finance Act 2004 (sub-contractors in the construction industry),
(d) any income tax which the company is liable to pay in respect of payments within section 946 of ITA 2007 (collection of tax: deposit-takers, building societies and certain companies), and
(e) any amount representing income tax which the company is liable to pay under section 966 of ITA 2007 (entertainers and sportsmen).
(2) In sections 109B to 109E read in accordance with subsection (1), any reference to the tax payable by a company in respect of periods beginning before any particular time includes a reference to any interest—
(a) on the tax so payable, or
(b) on tax paid by the company in respect of such periods,
which the company is liable to pay in respect of periods beginning before or after that time.
(3) In sections 109B to 109E “director”, in relation to a company, is to be read in accordance with the following provisions—
(a) section 67(1) and (2) of ITEPA 2003, and
(b) section 452 of CTA 2010.
(4) In sections 109B to 109E, any reference to a person having control of a company is to be read in accordance with sections 450 and 451 of CTA 2010.
112 Loss, destruction or damage to assessments, returns, etc.
(1) Where any assessment to tax, or any duplicate of assessment to tax, or any return or other document relating to tax, has been lost or destroyed, or been so defaced or damaged as to be illegible or otherwise useless, HMRC may, notwithstanding anything in any enactment to the contrary, do all such acts and things as they might have done, and all acts and things done under or in pursuance of this section shall be as valid and effectual for all purposes as they would have been, if the assessment or duplicate of assessment had not been made, or the return or other document had not been made or furnished or required to be made or furnished :
Provided that, where any person who is charged with tax in consequence or by virtue of any act or thing done under or in pursuance of this section proves to the satisfaction of the tribunal that he has already paid any tax for the same chargeable period in respect of the subject matter and on the account in respect of and on which he is so charged, relief shall be given to the extent to which the liability of that person has been discharged by the payment so made either by abatement from the charge or by repayment, as the case may require.
(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) The references in subsection (1) above to assessments to tax include references to determinations of penalties; and in its application to such determinations the proviso to that subsection shall have effect with the appropriate modifications.
(1) Any returns under the Taxes Acts shall be in such form as the Board prescribe, and in prescribing income tax forms under this subsection the Board shall have regard to the desirability of securing, so far as may be possible, that no person shall be required to make more than one return annually of the sources of his income and the amounts derived therefrom.
(1A) Any notice or direction requiring any return to be made under the Taxes Acts to an inspector or other officer of the Board may be issued or given in the name of that officer, or as the case may be in the name of the Board, by any officer of the Board, and so as to require the return to be made to the first-mentioned officer.
(1B) Where the Board or an inspector or other officer of the Board have in accordance with section 29 of this Act or paragraph 41 of Schedule 18 to the Finance Act 1998, or any other provision of the Taxes Acts, decided to make an assessment to tax, and have taken all other decisions needed for arriving at the amount of the assessment, they may entrust to some other officer of the Board responsibility for completing the assessing procedure, whether by means involving the use of a computer or otherwise, including responsibility for serving notice of the assessment on the person liable for tax.
(1C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1D) Where an officer of the Board has decided to impose a penalty under section 100 of this Act and has taken all other decisions needed for arriving at the amount of the penalty, he may entrust to any other officer of the Board responsibility for completing the determination procedure, whether by means involving the use of a computer or otherwise, including responsibility for serving notice of the determination on the person liable to the penalty.
(2) Any return or assessment or other document relating to chargeable gains or tax on capital gains may be combined with one relating to income or income tax.
(3) Every assessment, determination of a penalty, duplicate, warrant, notice of assessment , of determination or of demand, or other document required to be used in assessing, charging, collecting and levying tax or determining a penalty shall be in accordance with the forms prescribed from time to time in that behalf by the Board, and a document in the form prescribed and supplied or approved by them shall be valid and effectual .
114 Want of form or errors not to invalidate assessments, etc.
(1) An assessment or determination, warrant or other proceeding which purports to be made in pursuance of any provision of the Taxes Acts shall not be quashed, or deemed to be void or voidable, for want of form, or be affected by reason of a mistake, defect or omission therein, if the same is in substance and effect in conformity with or according to the intent and meaning of the Taxes Acts, and if the person or property charged or intended to be charged or affected thereby is designated therein according to common intent and understanding.
(2) An assessment or determination shall not be impeached or affected—
(a) by reason of a mistake therein as to—
(i) the name or surname of a person liable, or
(ii) the description of any profits or property, or
(iii) the amount of the tax charged, or
(b) by reason of any variance between the notice and the assessment or determination.
(1) A notice or form which is to be served under the Taxes Acts on a person may be either delivered to him or left at his usual or last known place of residence.
(2) Any notice or other document to be given, sent, served or delivered under the Taxes Acts may be served by post, and, if to be given, sent, served or delivered to or on any person by HMRC may be so served addressed to that person—
(a) at his usual or last known place of residence, or his place of business or employment, or
(b) in the case of a company, at any other prescribed place, and in the case of a liquidator of a company, at his address for the purposes of the liquidation or any other prescribed place.
(3) In subsection (2) above “prescribed” means prescribed by regulations made by the Board, and the power of making regulations for the purposes of that subsection shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule 3A to this Act (which makes provision with respect to the electronic lodgement of tax returns and documents required in connection with tax returns) shall have effect.
Unless other provision is made in that behalf by any enactment, an action of ejectment in Northern Ireland for non-payment of rent shall not be defeated on the ground that the person liable to pay the rent is entitled under the Income Tax Acts to a deduction which would reduce the amount due by him below a year’s rent.
(1) In this Act, unless the context otherwise requires—
“Act” includes an Act of the Parliament of Northern Ireland and “enactment” shall be construed accordingly,
“the Board” means the Commissioners of Inland Revenue,
“body of persons” means any body politic, corporate or collegiate, and any company, fraternity, fellowship and society of persons, whether corporate or not corporate,
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“chargeable gain” has the same meaning as in the 1992 Act,
“chargeable period” means a year of assessment or a company’s accounting period,
“collector” means any collector of taxes,
“company” has the meaning given by section 1121(1) of CTA 2010 (with section 617 of that Act) ... ,
“CTA 2009” means the Corporation Tax Act 2009,
“CTA 2010” means the Corporation Tax Act 2010,
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“HMRC” means Her Majesty’s Revenue and Customs;
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“inspector” means any inspector of taxes,
“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003,
“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005,
“ITA 2007” means the Income Tax Act 2007,
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“partner” is to be construed in accordance with section 12AA(10B) of this Act;
“partnership return” has the meaning given by section 12AA(10A) of this Act,
“the principal Act” means the Income and Corporation Taxes Act 1988,
“the relevant trustees”, in relation to a settlement, shall be construed in accordance with section 7(9) of this Act.
“return” includes any statement or declaration under the Taxes Acts,
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“successor”, in relation to a person who is required to make and deliver, or has made and delivered, a partnership return, and “predecessor” and “successor”, in relation to the successor of such a person, shall be construed in accordance with section 12AA(11) of this Act;
“tax”, where neither income tax nor capital gains tax nor corporation tax nor development land tax is specified, means any of those taxes ... ,
“the Taxes Acts” means this Act and—
the Tax Acts ... and
the Taxation of Chargeable Gains Act 1992 and all other enactments relating to capital gains tax,
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“the 1992 Act ” means the Taxation of Chargeable Gains Act 1992
“TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010,
“the TCEA 2007” means the Tribunals, Courts and Enforcement Act 2007;
“trade” includes every trade, manufacture, adventure or concern in the nature of trade .
“the tribunal” is to be read in accordance with section 47C;
(2) For the purposes of this Act, a person shall be deemed not to have failed to do anything required to be done within a limited time if he did it within such further time, if any, as the Board or the tribunal or officer concerned may have allowed; and where a person had a reasonable excuse for not doing anything required to be done he shall be deemed not to have failed to do it unless the excuse ceased and, after the excuse ceased, he shall be deemed not to have failed to do it if he did it without unreasonable delay after the excuse had ceased:
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(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) For the purposes of this Act, the amount of tax covered by any assessment shall not be deemed to be finally determined until that assessment can no longer be varied, whether by the tribunal on an appeal notified to it or by the order of any court.
(5) For the purposes of this Act a loss of tax or a situation is brought about carelessly by a person if the person fails to take reasonable care to avoid bringing about that loss or situation.
(6) Where—
(a) information is provided to Her Majesty's Revenue and Customs,
(b) the person who provided the information, or the person on whose behalf the information was provided, discovers some time later that the information was inaccurate, and
(c) that person fails to take reasonable steps to inform Her Majesty's Revenue and Customs,
any loss of tax or situation brought about by the inaccuracy shall be treated for the purposes of this Act as having been brought about carelessly by that person.
(7) In this Act references to a loss of tax or a situation brought about deliberately by a person include a loss of tax or a situation that arises as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.
(1) This Act shall come into force for all purposes on 6th April 1970 to the exclusion of the corresponding enactments repealed by the principal Act.
(2) This Act, and the repeals made by the principal Act, have effect subject to Schedule 4 to this Act.
(3) This Act, so far as it relates to income tax or corporation tax, shall be construed as one with the principal Act.
(4) This Act, so far as it relates to chargeable gains, shall be construed as one with the 1992 Act and ITEPA 2003.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 12C
PART 1 Introduction
Overview
A1 (1) This Schedule confers powers on the Commissioners to make regulations requiring or authorising certain persons and certain partnerships (“relevant persons” and “relevant partnerships”) to take certain steps relating to digital reporting and record-keeping.
(2) This Part of this Schedule contains introductory provision, in particular explaining what is meant by a “relevant person” and a “relevant partnership”.
(3) Part 2 of this Schedule contains the powers to make regulations and sets out the penalties for non-compliance with certain obligations which may be imposed by the regulations.
(4) Part 3 of this Schedule contains provision about exempting relevant persons or relevant partnerships from requirements imposed by the regulations.
(5) Part 4 of this Schedule contains supplementary provision.
Interpretation: relevant persons
1 (1) For the purposes of this Schedule a person is a “relevant person” if the person is carrying on or has carried on a relevant activity.
(2) A “relevant activity”, in relation to a person, means any activity which may give rise to profits or other income for which the person would be liable to income tax chargeable under Part 2 or Part 3 of ITTOIA 2005 if the person were UK resident.
(3) But the following activities are not relevant activities—
(a) any activity carried on in partnership;
(b) any activity carried on by the trustees of a charitable trust or the trustees of an exempt unauthorised unit trust (within the meaning of the Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I. 2013/2819));
(c) the underwriting business of a member of Lloyd's (within the meaning of section 184 of the Finance Act 1993);
(d) holding shares in respect of which a distribution may be made which is chargeable to income tax under Part 3 of ITTOIA 2005 by virtue of section 548(6) of CTA 2010 (distributions to shareholders in real estate investment trusts);
(e) participating in an open-ended investment company which may make distributions chargeable to income tax under Part 3 of ITTOIA 2005 by virtue of regulation 69Z18 of the Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964) (property income distributions).
Interpretation: relevant partnerships
2 (1) For the purposes of this Schedule a partnership is a “relevant partnership” if one or more of the partners is an individual, unless all of the activities of the partnership which may give rise to profits or income are activities falling within sub-paragraph (2).
(2) The following activities fall within this sub-paragraph—
(a) the underwriting business of a Lloyd's partnership (as defined in section 184(1) of the Finance Act 1993);
(b) holding shares in respect of which a distribution may be made which is chargeable to income tax under Part 3 of ITTOIA 2005 by virtue of section 548(6) of CTA 2010 (distributions to shareholders in real estate investment trusts);
(c) participating in an open-ended investment company which may make distributions chargeable to income tax under Part 3 of ITTOIA 2005 by virtue of regulation 69Z18 of the Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964) (property income distributions).
...
3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nominated partners
5 (1) Requirements imposed by regulations under this Schedule on a partnership are to be met by a nominated partner.
(2) A “nominated partner” is a partner nominated for the purposes of this Schedule—
(a) by the partners, or
(b) by the Commissioners.
(3) A nomination, or a revocation of a nomination, by the partners does not have effect until notice of the revocation or nomination is given to HMRC.
(4) The Commissioners may by regulations make provision about nominations and the revocation of nominations, including provision about the circumstances in which the Commissioners may nominate a partner.
(5) In this Act references to a nominated partner are to a partner nominated for the purposes of this Schedule.
PART 2 Digital reporting and record-keeping
Interpretation
6 In this Part of this Schedule “business”—
(a) in relation to a relevant person (see paragraph 1), means the relevant activity or activities that the person is carrying on or has carried on, and
(b) in relation to a relevant partnership (see paragraph 2), means the activity or activities of the partnership that may give rise to profits or income and do not fall within paragraph 2(2).
Periodic updates
7 (1) The Commissioners may by regulations require a relevant person or relevant partnership to provide to HMRC, by electronic communications, specified information about the business of the person or partnership.
(2) The information which may be specified includes any information (“financial information”) relevant to calculating profits, losses or income of the business, including information about receipts and expenses.
(3) The regulations may require information to be provided at or for specified intervals, times or periods.
(4) The regulations may not require financial information about the business to be provided more often than once every 3 months.
End of period statement
8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Personal or trustee return etc.
9 The Commissioners may by regulations require or authorise the use of electronic communications for the delivery by a relevant person of —
(a) a return required by section 8(1)(a) or 8A(1)(a) of this Act;
(b) any accounts, statements and documents required by section 8(1)(b) or 8A(1)(b) of this Act;
(c) a notice amending a return under section 9ZA of this Act.
Partnership return
10 (1) The Commissioners may by regulations require a relevant partnership to provide to HMRC, by electronic communications, a return containing specified information about the partnership's business in relation to each tax year.
(2) The information which may be specified includes any information which is or may be required to be included in a section 12AA partnership return, including information in respect of any partners within the charge to corporation tax.
(3) In particular, the information which may be specified includes the information required to be included in a section 12AA partnership return by section 12AB (partnership statements).
(4) Regulations under this paragraph may require the return to include a declaration to the effect that the information included in it is correct and complete.
(5) A Schedule A1 partnership return for a tax year must be provided to HMRC on or before 31 January following the tax year.
(6) In this Act—
(a) references to a Schedule A1 partnership return are to a return required by regulations under this paragraph, and
(b) references to a partnership statement, in relation to a Schedule A1 partnership return, are to information required to be included in the return by virtue of sub-paragraph (3).
(7) In the Taxes Acts, unless the contrary intention appears, a reference (whether general or specific) to a return under, or a return required under, this Act includes a reference to a Schedule A1 partnership return.
Record-keeping
11 (1) The Commissioners may by regulations require a relevant person or relevant partnership to—
(a) keep specified records relating to the business in electronic form, and
(b) preserve those records in electronic form for a specified period.
(2) The records which may be specified are any records the Commissioners consider relevant to ascertaining information required to be provided by regulations under this Part of this Schedule.
(3) A requirement imposed by regulations under this paragraph is in addition to, and not in place of, any other requirement that the person or partnership keep and preserve records (or keep and preserve records in a particular form).
(4) Paragraph 5(1) (requirements imposed on partnership to be met by nominated partner) does not apply to requirements imposed by regulations under this paragraph.
12 (1) This paragraph applies where requirements imposed by regulations under paragraph 11 for any period are not complied with.
(2) The person, or in the case of a partnership each relevant partner, is liable for a penalty.
(3) “Relevant partner” means any person who was a partner in the partnership at any time during the period in question.
(4) The amount of the penalty must not exceed £3,000.
(5) A person or relevant partner is not liable to a penalty under this paragraph in relation to a period if the person or relevant partner is liable to a penalty under section 12B(5) in relation to that period.
Electronic communications and records: supplementary powers
13 (1) This paragraph applies to regulations under paragraphs 7 ..., 9, 10 and 11.
(2) The regulations may (amongst other things) make provision—
(za) as to the means of electronic communication to be used for providing information;
(a) as to the electronic form to be taken by information provided and records kept or preserved,
(b) requiring persons to prepare and keep records of information provided by means of electronic communications,
(c) for the production of the contents of records kept or preserved in accordance with regulations under this Part of this Schedule,
(d) as to conditions that must be complied with in connection with the use of electronic communications or the keeping or preservation of electronic records,
(e) for treating information as not having been provided or records as not having been kept or preserved unless conditions are complied with,
(f) for determining the time at which and person by whom information is taken to have been delivered, and
(g) for authenticating information or records.
(3) The regulations may also make provision (which may include provision for the application of conclusive or other presumptions) about the manner of proving for any purpose—
(a) whether any use of electronic communications is to be taken as having resulted in the provision of information,
(b) the time at which information was provided,
(c) the person by whom information was provided,
(d) the contents of any information provided,
(e) the contents of any records, and
(f) any other matter for which provision may be made by the regulations.
(4) The regulations may allow or require use to be made of intermediaries in connection with—
(a) the provision of information by means of electronic communications, and
(b) the authentication or security of anything transmitted by any such means.
(5) The regulations may—
(a) allow any authorisation or requirement for which the regulations may provide to be given by means of a specific or general direction given by the Commissioners, and
(b) provide that the conditions of an authorisation or requirement are to be taken to be satisfied only where the Commissioners are satisfied as to specified matters.
(6) The regulations may provide—
(a) that information provided must meet standards of accuracy and completeness set by specific or general directions given by the Commissioners, and
(b) that failure to meet those standards may be treated as a failure to provide the information, or as a failure to comply with the requirements of the regulations.
PART 3 Exemptions
Exemption for the digitally excluded
14 (1) The Commissioners must by regulations make provision—
(a) for a person to be exempt from requirements imposed by regulations under paragraphs 7, 9 and 11 if the Commissioners are satisfied that the person is digitally excluded, and
(b) for a partnership to be exempt from requirements imposed by regulations under paragraphs 7, 10 and 11 if the Commissioners are satisfied that the partnership is digitally excluded.
(1A) The regulations may provide that where the Commissioners are satisfied that a person or partnership is digitally excluded, prior requirements imposed on the person or partnership are to be treated as never having been imposed.
(1B) In sub-paragraph (1A) “prior requirements” means requirements imposed by regulations under paragraphs 7, 9 and 11 which are required to be complied with before the date on which the Commissioners are satisfied that the person or partnership is digitally excluded.
(2) A person is digitally excluded if the digital exclusion condition is met in relation to the person.
(3) A partnership is digitally excluded if the digital exclusion condition is met in relation to each partner.
(4) The digital exclusion condition is met in relation to a person or partner if—
(a) the person or partner is a practising member of a religious society or order whose beliefs are incompatible with using electronic communications or keeping electronic records, or
(b) for any reason (including age, disability or location) it is not reasonably practicable for the person or partner to use electronic communications or to keep electronic records.
Further exemptions
15 (1) The Commissioners may by regulations make provision for further exemptions , including exemptions the conditions of which are to be taken to be satisfied only where the Commissioners are satisfied as to specified matters.
(2) The exemptions for which provision may be made include exemptions based on income or other financial criteria.
(3) The regulations may provide that where the conditions of a further exemption are met by a person or partnership, prior requirements imposed on the person or partnership are to be treated as never having been imposed.
(4) In sub-paragraph (3) “prior requirements”, in relation to a further exemption, means requirements imposed by regulations under paragraphs 7, 9 and 11 which are required to be complied with before the date on which the conditions of the further exemption are met.
(5) The regulations may allow any exemption for which the regulations may provide to be given by means of a specific or general direction given by the Commissioners.
PART 4 Supplementary provision
Appeals
16 (1) An appeal may be brought against any decision made by the Commissioners, or by an officer of Revenue and Customs, under regulations under this Schedule.
(2) Notice of an appeal under this paragraph must be given to HMRC within 30 days after the day on which notice of the decision is given.
(3) The notice of appeal must—
(a) be in writing, and
(b) specify the grounds of appeal.
Interpretation
17 (1) Any power in this Schedule to require the provision of information includes power to require the provision of accounts, statements and documents relating to that information.
(2) Where a partnership (“the reporting partnership”) includes a partner which is itself a partnership, references in this Schedule to a partner include an indirect partner in the reporting partnership.
Section 12AA(1C) (meaning of “indirect partner”) applies for the purposes of this sub-paragraph.
Regulations
18 (1) Regulations under this Schedule may—
(a) make provision which applies generally or only for specified cases or purposes;
(b) make different provision for different cases or purposes;
(c) include incidental, supplemental, consequential, saving, transitional or transitory provision;
(d) make provision for matters to be specified by the Commissioners in accordance with the regulations.
(2) Sub-paragraph (1)(d) does not apply to any interval, time or period specified by virtue of paragraph 7(3) (which may be specified only by the regulations).
(3) Regulations under this Schedule may make provision for a relevant person or relevant partnership, but who would not otherwise be subject to a requirement imposed by the regulations, to elect to be subject to that requirement.
(4) Regulations under this Schedule may provide that, for the purposes of any provision of this Schedule or of the regulations, a change in the accounting date of a business is to be disregarded (and its period of account determined accordingly).
(5) The power to make regulations under this Schedule is exercisable by statutory instrument.
(6) A statutory instrument containing regulations under this Schedule is subject to annulment in pursuance of a resolution of the House of Commons.