SCHEDULE 32 Stamp duty: abolition of fixed duty on certain instruments
Section 99
Part 1 Abolition of fixed duty
FA 1985
1 Part 3 of FA 1985 (stamp duty) is amended as follows.
2 In section 83 (transfers in connection with divorce, dissolution of civil partnership, etc), omit subsection (2) (fixed duty).
3 In section 84 (death: varying dispositions, and appropriations)—
(a) omit subsections (8) and (9) (fixed duty and adjudication), and
(b) in subsection (11) (commencement), omit the words from “and,” to “subsection (8) above”.
FA 1986
4 Part 3 of FA 1986 (stamp duty) is amended as follows.
5 In section 66 (company's purchase of own shares), omit subsection (2A) (fixed duty).
6 In section 67(9) (transfer of securities between depositary receipt systems), for “the stamp duty chargeable on the instrument is £5” substitute “ stamp duty is not chargeable on the instrument ”.
7 In section 70(9) (transfer of securities between clearance systems), for “the stamp duty chargeable on the instrument is £5” substitute “ stamp duty is not chargeable on the instrument ”.
8 In section 72A(1) (transfer of securities between depositary receipt system and clearance system), for paragraph (b) substitute—
(b) stamp duty is not chargeable on the instrument.
FA 1999
9 FA 1999 is amended as follows.
10 (1) Schedule 13 (instruments chargeable to stamp duty and rates of duty) is amended as follows.
(2) In paragraph 1(5) (treasury shares), for the words from “any instrument” to the end substitute “ sub-paragraph (1) does not apply to any instrument to which sub-paragraph (6) applies. ”
(3) In Part 3 (other instruments chargeable to stamp duty and rates of duty) omit—
(a) paragraph 16 (fixed duty on transfer otherwise than on sale) and the heading before it,
(b) paragraph 17 (fixed duty on declaration of use or trust) and the heading before it,
(c) paragraph 18(2) (fixed duty on disposition of certain property in Scotland),
(d) paragraph 19(1) (fixed duty on duplicate or counterpart),
(e) paragraph 21(3) (fixed duty on partition or division),
(f) paragraph 22 (fixed duty on release or renunciation) and the heading before it, and
(g) paragraph 23 (fixed duty on surrender) and the heading before it.
11 (1) Schedule 15 (stamp duty: bearer instruments) is amended as follows.
(2) Omit paragraph 6 (fixed duty on instrument given in substitution for a like instrument stamped ad valorem).
(3) At the beginning of Part 2 (exemptions) insert—
Substitute instruments
12A (1) Stamp duty is not chargeable on a substitute instrument.
(2) A substitute instrument is a bearer instrument given in substitution for a like instrument stamped ad valorem (whether under this Schedule or otherwise) (“the original instrument”).
(3) The substitute instrument shall not be treated as duly stamped unless it appears by some stamp impressed on it that the full and proper duty has been paid on the original instrument.
(4) In paragraph 20 (variation of original terms or conditions), for paragraph (b) substitute—
(b) has been stamped in accordance with paragraph 12A, or
.
(5) In paragraph 26 (instruments treated as duly stamped), omit paragraph (b) (and the “or” before it).
Part 2 Consequential provisions and saving
FA 1982
12 In section 129(1) of FA 1982 (exemption from duty on grants, transfers to charities etc), omit “, or paragraph 16,”.
FA 1986
13 Part 3 of FA 1986 (stamp duty) is amended as follows.
14 (1) Section 67 (stamp duty on certain transfers to depositary receipt systems) is amended as follows.
(2) In subsection (1), after “instrument” insert “ (other than a bearer instrument) ”.
(3) In subsection (3), for the words from the beginning to “then,” substitute
In any other case—
(a) stamp duty is chargeable on the instrument under this subsection, and
(b)
.
(4) After subsection (9) insert—
(9A) In this section “bearer instrument” has the meaning given in paragraph 3 of Schedule 15 to the Finance Act 1999.
15 (1) Section 70 (stamp duty on certain transfers to a clearance system) is amended as follows.
(2) In subsection (1), after “instrument” insert “ (other than a bearer instrument) ”.
(3) In subsection (3), for the words from the beginning to “then,” substitute
In any other case—
(a) stamp duty is chargeable on the instrument under this subsection, and
(b)
.
(4) After subsection (9) insert—
(9A) In this section “bearer instrument” has the meaning given in paragraph 3 of Schedule 15 to the Finance Act 1999.
FA 1987
16 Part 3 of FA 1987 (stamp duty and stamp duty reserve tax) is amended as follows.
17 In section 50(1) (warrants to purchase Government stock, etc), omit “, or paragraph 16”.
18 In section 55(1) (Crown exemption), omit “, or paragraph 16”.
FA 1990
19 In section 108(1) of FA 1990 (abolition of stamp duty on transfer of securities), insert at the end “ or section 67(3) or 70(3) of the Finance Act 1986 (stamp duty on certain transfers to depositary receipt systems and clearance systems) ”.
FA 1999
20 In Schedule 14 to FA 1999, omit paragraphs 10(b), 11(b), 12(3) and 13(3).
FA 2003
21 In Schedule 40 to FA 2003, omit paragraph 2(b).
Saving for certain land transactions
22 (1) The following provisions of this Schedule do not have effect in relation to an instrument effecting a land transaction or a duplicate or counterpart of such an instrument—
(a) paragraphs 1 to 3,
(b) paragraph 10,
(c) paragraph 12,
(d) paragraph 18, and
(e) the repeal of paragraphs 10(b) and 11(b) of Schedule 14 to FA 1999.
(2) In sub-paragraph (1) “land transaction” has the same meaning as in Part 4 of FA 2003, except that it does not include a transfer of an interest in a property-investment partnership (within the meaning of Schedule 15 of that Act).
Repeals on abolition day
23 If a day is appointed under section 111 of FA 1990 (abolition day), paragraphs 14 and 15 of this Schedule cease to have effect in accordance with section 108 of that Act.
SCHEDULE 33 PRT: elections for oil fields to become non-taxable
Section 107
Part 1 New Schedule 20A to FA 1993
1 This is Schedule 20A to be inserted before Schedule 21 to FA 1993—
SCHEDULE 20A
PRT: elections for oil fields to become non-taxable
Election by responsible person
1 (1) The responsible person for a taxable field may make an election that the field is to be non-taxable.
(2) An election is irrevocable.
(3) The responsible person may not make an election unless each person who is a participator at the time the election is made agrees to the election being made.
(4) If the responsible person makes an election, the Commissioners may assume that each participator agrees to the election being made (unless it appears to the Commissioners that a participator does not agree).
Decision by Commissioners
2 (1) If an election is made, the Commissioners must decide whether or not the field is no longer taxable.
(2) For the purposes of this paragraph, the field is no longer taxable if it appears to the Commissioners that one or other of the following conditions is met in relation to each future chargeable period.
(3) Condition A is that no assessable profit will accrue to any participator in the field in that period.
(4) Condition B is that the assessable profit accruing to each participator in the field in that period will be equal to, or smaller than, the cash equivalent of that participator's share of the oil allowance for the field in that period.
(5) The responsible person must give the Commissioners such information as the Commissioners may reasonably require in connection with their making a decision under sub-paragraph (1).
(6) The Commissioners may make such assumptions as they think appropriate for the purposes of making a decision under this paragraph (including assumptions about what, if any, participators there will be in the field in future chargeable periods).
(7) In this paragraph—
“assessable profit” means assessable profit before any reduction under section 7 of OTA 1975 (relief for allowable losses);
“future chargeable period”, in relation to a decision by the Commissioners under this paragraph, means a chargeable period that falls at any time after the chargeable period in which the Commissioners make that decision.
3 (1) The Commissioners must give the responsible person notice of their decision under paragraph 2(1).
(2) Within one month of being given notice by the Commissioners of their decision, the responsible person must give copies of the notice to each person who is a participator, or a former participator, at the time the Commissioners' notice is given.
(3) But the responsible person is not required to give notice to any person to whom it would be impracticable to give notice.
When election has effect
4 (1) An election does not have effect unless the Commissioners decide under paragraph 2(1) that the field is no longer taxable.
(2) In such a case, the election has effect from the start of the first chargeable period to begin after the Commissioners give notice under paragraph 3.
(3) The election then continues to have effect indefinitely (unless cancelled in accordance with paragraph 6).
No unrelievable field losses from field
5 For as long as the election has effect, no allowable loss that accrues from the oil field is an allowable unrelievable field loss for the purposes of petroleum revenue tax.
Cancellation of election by Commissioners
6 (1) The Commissioners may cancel an election if, within 3 years of their giving notice under paragraph 3, it appears to them that—
(a) information that the responsible person gave the Commissioners in connection with the election was inaccurate or incomplete at the time it was given, and
(b) if the information had not been inaccurate or incomplete, the Commissioners would not have made the decision that they made under paragraph 2.
(2) For the purposes of sub-paragraph (1) it does not matter whether or not the Commissioners required the information to be given.
7 (1) If the Commissioners cancel an election, they must give notice of the cancellation—
(a) to the person who made the election, or
(b) if it is impracticable to give notice to that person, to a person who is a participator at the time the election is cancelled, or
(c) if it is impracticable to give notice to any such person, to a person who is a former participator at the time the election is cancelled;
but the Commissioners are not required to give notice to a person falling within paragraph (c) if it would be impracticable to give notice to any such person.
(2) Within one month of being given notice by the Commissioners under sub-paragraph (1), the person must give copies of the notice to each person who is a participator, or a former participator, at the time the Commissioners' notice is given.
(3) But that person is not required to give notice to any person to whom it would be impracticable to give notice.
Effect of cancellation
8 (1) If the Commissioners cancel an election under paragraph 6, the election is to be treated as though it had never had effect.
(2) But that does not make a person liable for anything that the person did, or did not do, in consequence of the election having effect before its cancellation.
(3) If the Commissioners cancel an election, the enactments relating to petroleum revenue tax apply to the oil field subject to sub-paragraphs (4) to (7).
(4) The Commissioners may specify the periods within which PRT returns for the relevant chargeable periods must be delivered.
(5) If the Commissioners specify the period within which a PRT return must be delivered, the provisions of OTA 1975 set out in sub-paragraph (6) apply to the specified period as if it were a period for the delivery of a PRT return that has been extended under paragraph 2 or 5 of Schedule 2 to OTA 1975.
(6) The provisions of OTA 1975 referred to in sub-paragraph (5) are—
(a) paragraph 12A of Schedule 2, and
(b) paragraph 2(7) and (8) of Schedule 5 (including those provisions as applied to Schedule 6 to OTA 1975 by paragraph 2 of Schedule 6).
(7) For the purposes of paragraph 4 of Schedule 2 to OTA 1975, the “initial period” is the period of thirty days beginning with the date on which the Commissioners give notice in accordance with paragraph 6 of this Schedule.
(8) The Commissioners may by regulations make transitional provision (including provision modifying enactments) applicable to cases where elections are made and subsequently cancelled under this Schedule.
(9) Regulations under sub-paragraph (8)—
(a) are to be made by statutory instrument, and
(b) are subject to annulment in pursuance of a resolution of the House of Commons.
(10) In this paragraph—
“PRT return” means a return under paragraph 2 or 5 of Schedule 2 to OTA 1975;
“relevant chargeable periods”, in relation to a cancelled election, means the series of consecutive chargeable periods that—
begins with the chargeable period from the start of which the election had effect, and
ends with the chargeable period during which the election is cancelled.
Appeals
9 (1) The responsible person may appeal against a decision of the Commissioners under paragraph 2(1).
(2) Any such appeal must be made within 3 months of the Commissioners giving notice under paragraph 3 of their decision to the responsible person.
10 (1) A person who is a participator, or a former participator, at the time the Commissioners cancel an election under paragraph 6 may appeal against the cancellation.
(2) Any such appeal must be made within 3 months of the Commissioners giving notice under paragraph 7 of the cancellation (whether or not the notice was given to the person making the appeal).
11 (1) Any appeal under paragraph 9 or 10 must be made to the Commissioners—
(a) by notice in writing, or
(b) in any other form authorised by direction of the Commissioners.
(2) Any appeal under paragraph 9 or 10 is to be determined by the Special Commissioners.
Interpretation
12 (1) In this Schedule—
“Commissioners” means the Commissioners for Her Majesty's Revenue and Customs (except in the expression “Special Commissioners”);
“election” means an election in writing, or in any other form authorised by direction of the Commissioners, made to the Commissioners;
“former participator”, in relation to a particular time, means a person who—
is not a participator in the chargeable period which includes that time, but
was a participator in any earlier chargeable period;
“OTA 1975” means the Oil Taxation Act 1975;
“participator”, in relation to a particular time, means a person who is a participator in the chargeable period which includes that time.
(2) Expressions used in this Schedule and in Part 1 of OTA 1975 have the same meaning in this Schedule as in that Part of OTA 1975.
Part 2 Other amendments
OTA 1975
2 In section 6 of OTA 1975 (allowances of unrelievable loss from abandoned field), in subsection (1A), after “this Act” insert “ and paragraph 5 of Schedule 20A to the Finance Act 1993 ”.
FA 1980
3 In Schedule 17 to FA 1980 (transfers of interests in oil fields), in paragraph 15 (terminal losses), after sub-paragraph (9) insert—
(9A) This paragraph is subject to paragraph 5 of Schedule 20A to the Finance Act 1993.
Oil Taxation Act 1983
4 In section 9 of the Oil Taxation Act 1983 (c. 56) (tariff receipts allowance), in subsection (5)(a), for the words from “other than” to the end substitute
other than—
(i) the principal field, or
(ii) an oil field that is a non-taxable field by virtue of section 185(1) or (1A) of the Finance Act 1993.
Section 109
ICTA
1 In section 393A of ICTA (losses: set off against profits), in subsections (2C)(b) and (11)(a), for “abandonment expenditure” substitute “ general decommissioning expenditure ”.
CAA 2001
2 CAA 2001 is amended as follows.
3 In section 26 (demolition costs), in subsection (5), for “abandonment expenditure” substitute “ general decommissioning expenditure ”.
4 In section 57 (available qualifying expenditure), in the entry in subsection (2) relating to section 165(3) of CAA 2001, for “abandonment expenditure” substitute “ general decommissioning expenditure ”.
5 (1) Section 164 (abandonment expenditure incurred before cessation of ring fence trade) is amended as follows.
(2) In the heading, for “abandonment expenditure” substitute “ general decommissioning expenditure ”.
(3) In subsections (1), (2)(a), (3)(a), (4)(a) and (5), for “abandonment expenditure” substitute “ general decommissioning expenditure ”.
6 (1) Section 165 (abandonment expenditure within 3 years of ceasing ring fence trade) is amended as follows.
(2) In the heading, for “abandonment expenditure” substitute “ general decommissioning expenditure ”.
(3) In subsection (1)(b) and (c), for “abandonment expenditure” substitute “ general decommissioning expenditure ”.
(4) In subsection (3)—
(a) in paragraph (a), for “relevant abandonment cost” substitute “ relevant decommissioning cost ”, and
(b) in paragraph (b), for “abandonment expenditure” substitute “ general decommissioning expenditure ”.
(5) In subsection (4), in the definition of “the relevant abandonment cost”—
(a) for “relevant abandonment cost” substitute “ relevant decommissioning cost ”, and
(b) for “abandonment expenditure”, in each place, substitute “ general decommissioning expenditure ”.
Section 113
Part 1 Powers to obtain information and documents
Power to obtain information and documents from taxpayer
1 (1) An officer of Revenue and Customs may by notice in writing require a person (“the taxpayer”)—
(a) to provide information, or
(b) to produce a document,
if the information or document is reasonably required by the officer for the purpose of checking the taxpayer's tax position or for the purpose of collecting a tax debt of the taxpayer.
(2) In this Schedule, “taxpayer notice” means a notice under this paragraph.
Power to obtain information and documents from third party
2 (1) An officer of Revenue and Customs may by notice in writing require a person—
(a) to provide information, or
(b) to produce a document,
if the information or document is reasonably required by the officer for the purpose of checking the tax position of another person whose identity is known to the officer (“the taxpayer”) or for the purpose of collecting a tax debt of the taxpayer.
(2) A third party notice must name the taxpayer to whom it relates, unless the tribunal has approved the giving of the notice and disapplied this requirement under paragraph 3.
(3) In this Schedule, “third party notice” means a notice under this paragraph.
Approval etc of taxpayer notices and third party notices
3 (1) An officer of Revenue and Customs may not give a third party notice without—
(a) the agreement of the taxpayer, or
(b) the approval of the tribunal .
(2) An officer of Revenue and Customs may ask for the approval of the tribunal to the giving of any taxpayer notice or third party notice (and for the effect of obtaining such approval see paragraphs 29, 30 and 53 (appeals against notices and offence)).
(2A) An application for approval under this paragraph may be made without notice (except as required under sub-paragraph (3)).
(3) The tribunal may not approve the giving of a taxpayer notice or third party notice unless—
(a) an application for approval is made by, or with the agreement of, an authorised officer of Revenue and Customs,
(b) the tribunal is satisfied that, in the circumstances, the officer giving the notice is justified in doing so,
(c) the person to whom the notice is to be addressed has been told that the information or documents referred to in the notice are required and given a reasonable opportunity to make representations to an officer of Revenue and Customs,
(d) the tribunal has been given a summary of any representations made by that person, and
(e) in the case of a third party notice, the taxpayer has been given a summary of the reasons why an officer of Revenue and Customs requires the information and documents.
(4) Paragraphs (c) to (e) of sub-paragraph (3) do not apply to the extent that the tribunal is satisfied that taking the action specified in those paragraphs might prejudice the assessment or collection of tax.
(5) Where the tribunal approves the giving of a third party notice under this paragraph, it may also disapply the requirement to name the taxpayer in the notice if it is satisfied that the officer has reasonable grounds for believing that naming the taxpayer might seriously prejudice the assessment or collection of tax.
Copying third party notice to taxpayer
4 (1) An officer of Revenue and Customs who gives a third party notice must give a copy of the notice to the taxpayer to whom it relates, unless the tribunal has disapplied this requirement.
(2) The tribunal may not disapply that requirement unless—
(a) an application for approval is made by, or with the agreement of, an authorised officer of Revenue and Customs, and
(b) the tribunal is satisfied that the officer has reasonable grounds for believing that giving a copy of the notice to the taxpayer might prejudice the assessment or collection of tax.
Power to obtain information and documents from financial institutions
4A (1) An officer of Revenue and Customs may by notice in writing require a financial institution—
(a) to provide information, or
(b) to produce a document,
if conditions A and B are met.
(2) Condition A is that the information or document is, in the reasonable opinion of the officer giving the notice, of a kind that it would not be onerous for the institution to provide or produce.
(3) Condition B is that the information or document is reasonably required by the officer—
(a) for the purpose of checking the tax position of another person whose identity is known to the officer (“the taxpayer”), or
(b) for the purpose of collecting a tax debt of the taxpayer.
(4) In this Schedule, “financial institution notice” means a notice under this paragraph.
(5) A financial institution notice may be given by an officer of Revenue and Customs only if—
(a) the officer is an authorised officer of Revenue and Customs, or
(b) an authorised officer of Revenue and Customs has agreed to the giving of the notice.
(6) A financial institution notice must name the taxpayer to whom it relates.
(7) An officer of Revenue and Customs—
(a) must give a copy of a financial institution notice to the taxpayer to whom it relates, and
(b) must give the taxpayer a summary of the reasons why an officer of Revenue and Customs requires the information and documents.
(8) An application (without notice) may be made to the tribunal by, or with the agreement of, an authorised officer of Revenue and Customs to disapply any of the requirements under sub-paragraph (6) or (7).
(9) The tribunal must grant the application to disapply the requirement under sub-paragraph (6) if it is satisfied that the officer has reasonable grounds for believing that naming the taxpayer might seriously prejudice the assessment or collection of tax.
(10) The tribunal must grant the application to disapply a requirement under sub-paragraph (7) if it is satisfied that complying with the requirement might prejudice the assessment or collection of tax.
Power to obtain information and documents about persons whose identity is not known
5 (1) An authorised officer of Revenue and Customs may by notice in writing require a person—
(a) to provide information, or
(b) to produce a document,
if the condition in sub-paragraph (2) is met.
(2) That condition is that the information or document is reasonably required by the officer for the purpose of checking the ... tax position of or for the purpose of collecting a tax debt of—
(a) a person whose identity is not known to the officer, or
(b) a class of persons whose individual identities are not known to the officer.
(3) An officer of Revenue and Customs may not give a notice under this paragraph without the approval of the tribunal .
(3A) An application for approval under this paragraph may be made without notice.
(4) The tribunal may not approve the giving of a notice under this paragraph unless it is satisfied that—
(a) the notice would meet the condition in sub-paragraph (2),
(b) there are reasonable grounds for believing that the person or any of the class of persons to whom the notice relates may have failed or may fail to comply with any provision of the law (including the law of a territory outside the United Kingdom) relating to tax,
(c) any such failure is likely to have led or to lead to serious prejudice to the assessment or collection of ... tax, and
(d) the information or document to which the notice relates is not readily available from another source.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Power to obtain information about persons whose identity can be ascertained
5A (1) An authorised officer of Revenue and Customs may by notice in writing require a person to provide relevant information about another person (“the taxpayer”) if conditions A to D are met.
(2) Condition A is that the information is reasonably required by the officer for the purpose of checking the tax position of the taxpayer or for the purpose of collecting a tax debt of the taxpayer.
(3) Condition B is that—
(a) the taxpayer's identity is not known to the officer, but
(b) the officer holds information from which the taxpayer's identity can be ascertained.
(4) Condition C is that the officer has reason to believe that—
(a) the person will be able to ascertain the taxpayer's identity from the information held by the officer, and
(b) the person obtained relevant information about the taxpayer in the course of carrying on a business.
(5) Condition D is that the taxpayer's identity cannot readily be ascertained by other means from the information held by the officer.
(6) “Relevant information” means all or any of the following—
(a) name,
(b) last known address, and
(c) date of birth (in the case of an individual).
(7) This paragraph applies for the purpose of checking the tax position of , or for the purpose of collecting a tax debt of, a class of persons as for the purpose of checking the tax position of , or for the purpose of collecting a tax debt of, a single person (and references to “the taxpayer” are to be read accordingly).
Notices
6 (1) In this Schedule, “information notice” means a notice under paragraph 1, 2, 4A, , 5 or 5A.
(2) An information notice may specify or describe the information or documents to be provided or produced.
(3) If an information notice is given with the approval of the tribunal , it must state that it is given with that approval.
(4) A decision of the tribunal under paragraph 3, 4 , 4A or 5 is final (despite the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007).
Complying with notices
7 (1) Where a person is required by an information notice to provide information or produce a document, the person must do so—
(a) within such period, and
(b) at such time, by such means and in such form (if any),
as is reasonably specified or described in the notice.
(2) Where an information notice requires a person to produce a document, it must be produced for inspection—
(a) at a place agreed to by that person and an officer of Revenue and Customs, or
(b) at such place as an officer of Revenue and Customs may reasonably specify.
(3) An officer of Revenue and Customs must not specify a place that is used solely as a dwelling.
(4) The production of a document in compliance with an information notice is not to be regarded as breaking any lien claimed on the document.
Producing copies of documents
8 (1) Where an information notice requires a person to produce a document, the person may comply with the notice by producing a copy of the document, subject to any conditions or exceptions set out in regulations made by the Commissioners.
(2) Sub-paragraph (1) does not apply where—
(a) the notice requires the person to produce the original document, or
(b) an officer of Revenue and Customs subsequently makes a request in writing to the person for the original document.
(3) Where an officer of Revenue and Customs requests a document under sub-paragraph (2)(b), the person to whom the request is made must produce the document—
(a) within such period, and
(b) at such time and by such means (if any),
as is reasonably requested by the officer.
Restrictions and special cases
9 This Part of this Schedule has effect subject to Parts 4 and 6 of this Schedule.
Part 2 Powers to inspect PREMISES AND OTHER PROPERTY
Power to inspect business premises etc
10 (1) An officer of Revenue and Customs may enter a person's business premises and inspect—
(a) the premises,
(b) business assets that are on the premises, and
(c) business documents that are on the premises,
if the inspection is reasonably required for the purpose of checking that person's tax position.
(2) The powers under this paragraph do not include power to enter or inspect any part of the premises that is used solely as a dwelling.
(3) In this Schedule—
“business assets” means assets that an officer of Revenue and Customs has reason to believe are owned, leased or used in connection with the carrying on of a business by any person (but see sub-paragraph (4)),
“business documents” means documents (or copies of documents)—
that relate to the carrying on of a business by any person, and
that form part of any person's statutory records, and
“business premises”, in relation to a person, means premises (or any part of premises) that an officer of Revenue and Customs has reason to believe are (or is) used in connection with the carrying on of a business by or on behalf of the person.
(4) For the purposes of this Schedule, “business assets” does not include documents, other than—
(a) documents that are trading stock for the purposes of Chapter 11A of Part 2 of ITTOIA 2005 (see section 172A of that Act), and
(b) documents that are plant for the purposes of Part 2 of CAA 2001.
(5) In sub-paragraph (1), the reference to a person's tax position does not include a reference to a person's position as regards soft drinks industry levy.
Power to inspect business premises etc of involved third parties
10A (1) An officer of Revenue and Customs may enter business premises of an involved third party (see paragraph 61A) and inspect—
(a) the premises,
(b) business assets that are on the premises, and
(c) relevant documents that are on the premises,
if the inspection is reasonably required by the officer for the purpose of checking the position of any person or class of persons as regards a relevant tax.
(2) The powers under this paragraph may be exercised whether or not the identity of that person is, or the individual identities of those persons are, known to the officer.
(3) The powers under this paragraph do not include power to enter or inspect any part of the premises that is used solely as a dwelling.
(4) In relation to an involved third party, “relevant documents” and “relevant tax” are defined in paragraph 61A.
Power to inspect premises used in connection with taxable supplies etc
11 (1) This paragraph applies where an officer of Revenue and Customs has reason to believe that—
(a) premises are used in connection with the supply of goods under taxable supplies and goods to be so supplied or documents relating to such goods are on those premises,
(b) ... or
(c) premises are used as or in connection with a fiscal warehouse.
(2) An officer of Revenue and Customs may enter the premises and inspect—
(a) the premises,
(b) any goods that are on the premises, and
(c) any documents on the premises that appear to the officer to relate to the supply of goods under taxable supplies ... or fiscal warehousing.
(3) The powers under this paragraph do not include power to enter or inspect any part of the premises that is used solely as a dwelling.
(4) Terms used both in this paragraph and in VATA 1994 have the same meaning here as they have in that Act.
Carrying out inspections under paragraph 10, 10A or 11
12 (1) An inspection under paragraph 10, 10A or 11 may be carried out only—
(a) at a time agreed to by the occupier of the premises, or
(b) if sub-paragraph (2) is satisfied, at any reasonable time.
(2) This sub-paragraph is satisfied if—
(a) the occupier of the premises has been given at least 7 days' notice of the time of the inspection (whether in writing or otherwise), or
(b) the inspection is carried out by, or with the agreement of, an authorised officer of Revenue and Customs.
(3) An officer of Revenue and Customs seeking to carry out an inspection under sub-paragraph (2)(b) must provide a notice in writing as follows—
(a) if the occupier of the premises is present at the time the inspection is to begin, the notice must be provided to the occupier,
(b) if the occupier of the premises is not present but a person who appears to the officer to be in charge of the premises is present, the notice must be provided to that person, and
(c) in any other case, the notice must be left in a prominent place on the premises.
(4) The notice referred to in sub-paragraph (3) must state the possible consequences of obstructing the officer in the exercise of the power.
(5) If a notice referred to in sub-paragraph (3) is given in respect of an inspection approved by the tribunal (see paragraph 13), it must state that the inspection has been so approved.
Powers to inspect property for valuation etc
12A (1) An officer of Revenue and Customs may enter and inspect premises for the purpose of valuing the premises if the valuation is reasonably required for the purpose of checking any person's position as regards income tax or corporation tax.
(2) An officer of Revenue and Customs may enter premises and inspect—
(a) the premises, and
(b) any other property on the premises,
for the purpose of valuing, measuring or determining the character of the premises or property.
(3) Sub-paragraph (2) only applies if the valuation, measurement or determination is reasonably required for the purpose of checking any person's position as regards—
(a) capital gains tax,
(b) corporation tax in respect of chargeable gains,
(c) inheritance tax,
(d) stamp duty land tax, ...
(e) stamp duty reserve tax, or
(f) annual tax on enveloped dwellings.
(4) A person who the officer considers is needed to assist with the valuation, measurement or determination may enter and inspect the premises or property with the officer.
Carrying out inspections under paragraph 12A
12B (1) An inspection under paragraph 12A may be carried out only if condition A or B is satisfied.
(2) Condition A is that—
(a) the inspection is carried out at a time agreed to by a relevant person, and
(b) the relevant person has been given notice in writing of the agreed time of the inspection.
(3) “Relevant person” means—
(a) the occupier of the premises, or
(b) if the occupier cannot be identified or the premises are vacant, a person who controls the premises.
(4) Condition B is that—
(a) the inspection has been approved by the tribunal, and
(b) any relevant person specified by the tribunal has been given at least 7 days' notice in writing of the time of the inspection.
(5) A notice under sub-paragraph (4)(b) must state the possible consequences of obstructing the officer in the exercise of the power.
(6) If a notice is given under this paragraph in respect of an inspection approved by the tribunal (see paragraph 13), it must state that the inspection has been so approved.
(7) An officer of Revenue and Customs seeking to carry out an inspection under paragraph 12A must produce evidence of authority to carry out the inspection if asked to do so by—
(a) the occupier of the premises, or
(b) any other person who appears to the officer to be in charge of the premises or property.
Approval of tribunal
13 (1) An officer of Revenue and Customs may ask the tribunal to approve an inspection under this Part of this Schedule (and for the effect of obtaining such approval see paragraph 39 (penalties)).
(1A) An application for approval under this paragraph may be made without notice (except as required under sub-paragraph (2A)).
(2) The tribunal may not approve an inspection under paragraph 10, 10A or 11 unless—
(a) an application for approval is made by, or with the agreement of, an authorised officer of Revenue and Customs, and
(b) the tribunal is satisfied that, in the circumstances, the inspection is justified.
(2A) The tribunal may not approve an inspection under paragraph 12A unless—
(a) an application for approval is made by, or with the agreement of, an authorised officer of Revenue and Customs,
(b) the person whose tax position is the subject of the proposed inspection has been given a reasonable opportunity to make representations to the officer of Revenue and Customs about that inspection,
(c) the occupier of the premises has been given a reasonable opportunity to make such representations,
(d) the tribunal has been given a summary of any representations made, and
(e) the tribunal is satisfied that, in the circumstances, the inspection is justified.
(2B) Paragraph (c) of sub-paragraph (2A) does not apply if the tribunal is satisfied that the occupier of the premises cannot be identified.
(3) A decision of the tribunal under this paragraph is final (despite the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007).
Restrictions and special cases
14 This Part of this Schedule has effect subject to Parts 4 and 6 of this Schedule.
Part 3 Further powers
Power to copy documents
15 Where a document (or a copy of a document) is produced to, or inspected by, an officer of Revenue and Customs, such an officer may take copies of, or make extracts from, the document.
Power to remove documents
16 (1) Where a document is produced to, or inspected by, an officer of Revenue and Customs, such an officer may—
(a) remove the document at a reasonable time, and
(b) retain it for a reasonable period,
if it appears to the officer to be necessary to do so.
(2) Where a document is removed in accordance with sub-paragraph (1), the person who produced the document may request—
(a) a receipt for the document, and
(b) if the document is reasonably required for any purpose, a copy of the document,
and an officer of Revenue and Customs must comply with such a request without charge.
(3) The removal of a document under this paragraph is not to be regarded as breaking any lien claimed on the document.
(4) Where a document removed under this paragraph is lost or damaged, the Commissioners are liable to compensate the owner of the document for any expenses reasonably incurred in replacing or repairing the document.
(5) In this paragraph references to a document include a copy of a document.
Power to mark assets and to record information
17 The powers under Part 2 of this Schedule include—
(a) power to mark business assets, and anything containing business assets, for the purpose of indicating that they have been inspected, and
(b) power to obtain and record information (whether electronically or otherwise) relating to the premises, property, goods, assets and documents that have been inspected.
Part 4 Restrictions on powers
Documents not in person's possession or power
18 An information notice only requires a person to produce a document if it is in the person's possession or power.
Types of information
19 (1) An information notice does not require a person to provide or produce—
(a) information that relates to the conduct of a pending appeal relating to tax or any part of a document containing such information,
(aa) information that relates to the conduct of a pending appeal under the Savings (Government Contributions) Act 2017 or any part of a document containing such information, or
(b) journalistic material (as defined in section 13 of the Police and Criminal Evidence Act 1984 (c. 60)) or information contained in such material.
(2) An information notice does not require a person to provide or produce personal records (as defined in section 12 of the Police and Criminal Evidence Act 1984) or information contained in such records, subject to sub-paragraph (3).
(3) An information notice may require a person—
(a) to produce documents, or copies of documents, that are personal records, omitting any information whose inclusion (whether alone or with other information) makes the original documents personal records (“personal information”), and
(b) to provide any information contained in such records that is not personal information.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Old documents
20 An information notice may not require a person to produce a document if the whole of the document originates more than 6 years before the date of the notice, unless the notice is given by, or with the agreement of, an authorised officer.
Taxpayer notices following tax return
21 (1) Where a person has made a tax return in respect of a chargeable period under section 8, 8A or 12AA of TMA 1970 (returns for purpose of income tax and capital gains tax), a taxpayer notice may not be given for the purpose of checking that person's income tax position or capital gains tax position in relation to the chargeable period.
(2) Where a person has made a tax return in respect of a chargeable period under paragraph 3 of Schedule 18 to FA 1998 (company tax returns), a taxpayer notice may not be given for the purpose of checking that person's corporation tax position in relation to the chargeable period.
(3) Sub-paragraphs (1) and (2) do not apply where, or to the extent that, any of conditions A to E is met.
(4) Condition A is that a notice of enquiry has been given in respect of—
(a) the return, or
(b) a claim or election (or an amendment of a claim or election) made by the person in relation to the chargeable period in respect of the tax (or one of the taxes) to which the return relates (“relevant tax”),
and the enquiry has not been completed so far as relating to the matters to which the taxpayer notice relates.
(5) In sub-paragraph (4), “notice of enquiry” means a notice under—
(a) section 9A or 12AC of, or paragraph 5 of Schedule 1A to, TMA 1970, or
(b) paragraph 24 of Schedule 18 to FA 1998.
(6) Condition B is that , as regards the person, an officer of Revenue and Customs has reason to suspect that—
(a) an amount that ought to have been assessed to relevant tax for the chargeable period may not have been assessed,
(b) an assessment to relevant tax for the chargeable period may be or have become insufficient, or
(c) relief from relevant tax given for the chargeable period may be or have become excessive.
(7) Condition C is that the notice is given for the purpose of obtaining any information or document that is also required for the purpose of checking the person's position as regards any tax other than income tax, capital gains tax or corporation tax.
(8) Condition D is that the notice is given for the purpose of obtaining any information or document that is required (or also required) for the purpose of checking the person's position as regards any deductions or repayments of tax or withholding of income referred to in paragraph 64(2) or (2A) (PAYE etc).
(8A) Condition E is that the notice is given for the purpose of obtaining any specified relevant transfer pricing information or documents.
(8B) For the purposes of Condition E, information or documents are “specified relevant transfer pricing information or documents” if—
(a) they are relevant transfer pricing records specified, or of a description specified, in regulations under section 12B of TMA 1970 or paragraph 21 of Schedule 18 to FA 1998 (duties to keep and preserve records), and
(b) the relevant person is required to keep and preserve those records under either or both of those provisions.
(8C) For the purposes of subsection (8B), the “relevant person” means—
(a) in the case of a tax return made in respect of a chargeable period under section 8A or 12AA of TMA 1970 (trustee’s and partnership returns)—
(i) the person, or
(ii) a person who was required by a notice under the section concerned to make and deliver the return;
(b) in any other case, the person.
(9) In this paragraph references to the person who made the return are only to that person in the capacity in which the return was made.
Application of paragraph 21 in case of returns under Schedule 2 to FA 2019
21ZA (1) For the purposes of paragraph 21 any reference to the making by a person of a return under section 8 or 8A of TMA 1970 includes the making by the person of a return under Schedule 2 to FA 2019.
(2) In the application of paragraph 21 in relation to a return under Schedule 2 to FA 2019, the return is to be treated as if it required a self-assessment of an amount of capital gains tax.
(3) For the purposes of paragraph 21, the definition of “the notice of enquiry” in its application to a return under Schedule 2 to FA 2019 needs to be read in the light of the provision made by paragraph 20 of that Schedule.
Taxpayer notices following land transaction return
21A (1) Where a person has delivered a land transaction return under section 76 of FA 2003 (returns for purposes of stamp duty land tax) in respect of a transaction, a taxpayer notice may not be given for the purpose of checking that person's stamp duty land tax position in relation to that transaction.
(2) Sub-paragraph (1) does not apply where, or to the extent that, any of conditions A to D is met.
(3) Condition A is that a notice of enquiry has been given in respect of—
(a) the return, or
(b) a claim (or an amendment of a claim) made by the person in connection with the transaction,
and the enquiry has not been completed.
(4) In sub-paragraph (3) “notice of enquiry” means a notice under paragraph 12 of Schedule 10, or paragraph 7 of Schedule 11A, to FA 2003.
(5) Condition B is that, as regards the person, an officer of Revenue and Customs has reason to suspect that—
(a) an amount that ought to have been assessed to stamp duty land tax in respect of the transaction may not have been assessed,
(b) an assessment to stamp duty land tax in respect of the transaction may be or have become insufficient, or
(c) relief from stamp duty land tax in respect of the transaction may be or have become excessive.
(6) Condition C is that the notice is given for the purpose of obtaining any information or document that is also required for the purpose of checking that person's position as regards a tax other than stamp duty land tax.
(7) Condition D is that relief from stamp duty land tax has been given in respect of the transaction and the notice is given for the purpose of checking whether—
(a) the relief is withdrawn to any extent under a provision mentioned in section 81 or 81ZA of FA 2003, or
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) Where condition D is met (and not any of conditions A to C), a taxpayer notice may not be given by virtue of this paragraph after the end of the period of 4 years beginning with the effective date of the transaction (but see sub-paragraph (9) in relation to PAIF seeding relief and COACS seeding relief).
(9) Where condition D is met because the notice is given for the purpose of checking whether the relief is withdrawn to any extent under a paragraph of Schedule 7A to FA 2003 (PAIF seeding relief and COACS seeding relief), the reference in sub-paragraph (8) to the effective date of the transaction is to be read as a reference to the first day of the control period within the meaning of that Schedule (see paragraph 21 of that Schedule).
(10) “Effective date” has the same meaning for the purposes of sub-paragraph (8) as for the purposes of Part 4 of FA 2003 (see section 119 of that Act).
Annual tax on enveloped dwellings: taxpayer notices following return
21B (1) Where a person has delivered, for a chargeable period with respect to a single-dwelling interest—
(a) an annual tax on enveloped dwellings return, or
(b) a return of the adjusted chargeable amount,
a taxpayer notice may not be given for the purpose of checking the person's annual tax on enveloped dwellings position as regards the matters dealt with in that return.
(2) Sub-paragraph (1) does not apply where, or to the extent that, any of conditions A to C is met.
(3) Condition A is that notice of enquiry has been given in respect of—
(a) the return, or
(b) a claim (or an amendment of a claim) made by the person in relation to the chargeable period,
and the enquiry has not been completed.
(4) In sub-paragraph (3) “notice of enquiry” means a notice under paragraph 8 of Schedule 33 to FA 2013 or paragraph 7 of Schedule 11A to FA 2003 (as applied by paragraphs 28(2) and 31(3) of Schedule 33 to FA 2013).
(5) Condition B is that, as regards the person, an officer of Revenue and Customs has reason to suspect that—
(a) an amount that ought to have been assessed to annual tax on enveloped dwellings for the chargeable period may not have been assessed,
(b) an assessment to annual tax on enveloped dwellings for the chargeable period may be or have become insufficient, or
(c) relief from annual tax on enveloped dwellings for the chargeable period may be or have become excessive.
(6) Condition C is that the notice is given for the purpose of obtaining any information or document that is also required for the purpose of checking that person's position as regards a tax other than annual tax on enveloped dwellings.
(7) In this Schedule references to a “single-dwelling interest” are to be read in accordance with section 108 of FA 2013.
Deceased persons
22 An information notice given for the purpose of checking the tax position of a person who has died may not be given more than 4 years after the person's death.
Privileged communications between professional legal advisers and clients
23 (1) An information notice does not require a person—
(a) to provide privileged information, or
(b) to produce any part of a document that is privileged.
(2) For the purpose of this Schedule, information or a document is privileged if it is information or a document in respect of which a claim to legal professional privilege, or (in Scotland) to confidentiality of communications as between client and professional legal adviser, could be maintained in legal proceedings.
(3) The Commissioners may by regulations make provision for the resolution by the tribunal of disputes as to whether any information or document is privileged.
(4) The regulations may, in particular, make provision as to—
(a) the custody of a document while its status is being decided, ...
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Auditors
24 (1) An information notice does not require a person who has been appointed as an auditor for the purpose of an enactment—
(a) to provide information held in connection with the performance of the person's functions under that enactment, or
(b) to produce documents which are that person's property and which were created by that person or on that person's behalf for or in connection with the performance of those functions.
(2) Sub-paragraph (1) has effect subject to paragraph 26.
Tax advisers
25 (1) An information notice does not require a tax adviser—
(a) to provide information about relevant communications, or
(b) to produce documents which are the tax adviser's property and consist of relevant communications.
(2) Sub-paragraph (1) has effect subject to paragraph 26.
(3) In this paragraph—
“relevant communications” means communications between the tax adviser and—
a person in relation to whose tax affairs he has been appointed, or
any other tax adviser of such a person,
the purpose of which is the giving or obtaining of advice about any of those tax affairs, and
“tax adviser” means a person appointed to give advice about the tax affairs of another person (whether appointed directly by that person or by another tax adviser of that person).
Auditors and tax advisers: supplementary
26 (1) Paragraphs 24(1) and 25(1) do not have effect in relation to—
(a) information explaining any information or document which the person to whom the notice is given has, as tax accountant, assisted any client in preparing for, or delivering to, HMRC, or
(b) a document which contains such information.
(2) In the case of a notice given under paragraph 5, paragraphs 24(1) and 25(1) do not have effect in relation to—
(a) any information giving the identity or address of a person to whom the notice relates or of a person who has acted on behalf of such a person, or
(b) a document which contains such information.
(3) Paragraphs 24(1) and 25(1) are not disapplied by sub-paragraph (1) or (2) if the information in question has already been provided, or a document containing the information in question has already been produced, to an officer of Revenue and Customs.
27 (1) This paragraph applies where paragraph 24(1) or 25(1) is disapplied in relation to a document by paragraph 26(1) or (2).
(2) An information notice that requires the document to be produced has effect as if it required any part or parts of the document containing the information mentioned in paragraph 26(1) or (2) to be produced.
Corresponding restrictions on inspection of ... documents
28 An officer of Revenue and Customs may not inspect a ... document under Part 2 of this Schedule if or to the extent that, by virtue of this Part of this Schedule, an information notice given at the time of the inspection to the occupier of the premises could not require the occupier to produce the document.
Part 5 Appeals against information notices
Right to appeal against taxpayer notice
29 (1) Where a taxpayer is given a taxpayer notice, the taxpayer may appeal ... against the notice or any requirement in the notice.
(2) Sub-paragraph (1) does not apply to a requirement in a taxpayer notice to provide any information, or produce any document, that forms part of the taxpayer's statutory records.
(3) Sub-paragraph (1) does not apply if the tribunal approved the giving of the notice in accordance with paragraph 3.
Right to appeal against third party notice
30 (1) Where a person is given a third party notice, the person may appeal ... against the notice or any requirement in the notice on the ground that it would be unduly onerous to comply with the notice or requirement.
(2) Sub-paragraph (1) does not apply to a requirement in a third party notice to provide any information, or produce any document, that forms part of the taxpayer's statutory records.
(3) Sub-paragraph (1) does not apply if the tribunal approved the giving of the notice in accordance with paragraph 3.
Right to appeal against notice given under paragraph 5 or 5A
31 Where a person is given a notice under paragraph 5 or 5A, the person may appeal ... against the notice or any requirement in the notice on the ground that it would be unduly onerous to comply with the notice or requirement.
Procedure
32 (1) Notice of an appeal under this Part of this Schedule must be given—
(a) in writing,
(b) before the end of the period of 30 days beginning with the date on which the information notice is given, and
(c) to the officer of Revenue and Customs by whom the information notice was given.
(2) Notice of an appeal under this Part of this Schedule must state the grounds of appeal.
(3) On an appeal that is notified to the tribunal, the tribunal may—
(a) confirm the information notice or a requirement in the information notice,
(b) vary the information notice or such a requirement, or
(c) set aside the information notice or such a requirement.
(4) Where the tribunal confirms or varies the information notice or a requirement, the person to whom the information notice was given must comply with the notice or requirement—
(a) within such period as is specified by the tribunal , or
(b) if the tribunal does not specify a period, within such period as is reasonably specified in writing by an officer of Revenue and Customs following the tribunal’s decision.
(5) Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007 a decision of the tribunal on an appeal under this Part of this Schedule is final.
(6) Subject to this paragraph, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to appeals under this Part of this Schedule as they have effect in relation to an appeal against an assessment to income tax.
Special cases
33 This Part of this Schedule has effect subject to Part 6 of this Schedule.
Part 6 Special cases
Supply of goods or services etc
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—
(a) the supply of goods or services,
(b) ... or
(c) the importation of goods ... 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 ... against the notice or any requirement in the notice.
(4) Sections 5 ... 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.
Involved third parties
34A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Registered pension schemes etc
34B (1) This paragraph applies to a third party notice or a notice under paragraph 5 if it refers only to information or documents that relate to any pensions matter.
(2) “Pensions matter” means any matter relating to—
(a) a registered pension scheme,
(b) an annuity purchased with sums or assets held for the purposes of a registered pension scheme or a pre-2006 pension scheme, ...
(c) an employer-financed retirement benefits scheme,
(d) a QROPS or former QROPS, or
(e) an annuity purchased with sums or assets held for the purposes of a QROPS or former QROPS.
(3) In relation to such a third party notice—
(a) paragraph 3(1) (approval etc of third party notices) does not apply,
(b) paragraph 4(1) (copying third party notices to taxpayer) does not apply, and
(c) paragraph 30(1) (appeal) has effect as if it permitted an appeal on any grounds.
(4) In relation to such a notice under paragraph 5—
(a) sub-paragraphs (3) and (4) of that paragraph (approval of tribunal) have effect as if they permitted, but did not require, an authorised officer of Revenue and Customs to obtain the approval of the tribunal, and
(b) paragraph 31 (appeal) has effect as if it permitted an appeal on any grounds.
(4A) In relation to a notice to which this paragraph applies that refers only to information or documents relating to a matter within sub-paragraph (2)(d) or (e), paragraph 20 (old documents) has effect as if the reference to 6 years were to 10 years.
(5) A person may not appeal against a requirement in the notice to provide any information, or produce any document, that forms part of any person's statutory records.
(6) Where the notice relates to a matter within sub-paragraph (2)(a) or (b), the officer of Revenue and Customs who gives the notice must give a copy of the notice to the scheme administrator in relation to the pension scheme.
(7) Where the notice relates to a matter within sub-paragraph (2)(c), the officer of Revenue and Customs who gives the notice must give a copy of the notice to the responsible person in relation to the employer-financed retirement benefits scheme.
(7A) Where the notice relates to a matter within sub-paragraph (2)(d) or (e), the officer of Revenue and Customs who gives the notice must give a copy of the notice to the scheme manager in relation to the pension scheme.
(8) Sub-paragraphs (6) to (7A) do not apply if the notice is given to a person who, in relation to the scheme or annuity to which the notice relates, is a prescribed description of person.
Registered pension schemes etc: interpretation
34C In paragraph 34B—
“employer-financed retirement benefits scheme” has the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see sections 393A and 393B of that Act);
“pension scheme” has the same meaning as in Part 4 of FA 2004;
“pre-2006 pension scheme” means a scheme that, at or in respect of any time before 6 April 2006, was—
a retirement benefits scheme approved for the purposes of Chapter 1 of Part 14 of ICTA,
a former approved superannuation fund (as defined in paragraph 1(3) of Schedule 36 to FA 2004),
a relevant statutory scheme (as defined in section 611A of ICTA) or a pension scheme treated as if it were such a scheme, or
a personal pension scheme approved under Chapter 4 of Part 14 of ICTA;
“prescribed” means prescribed by regulations made by the Commissioners;
“QROPS” and “former QROPS” have the meanings given by section 169(8) of FA 2004;
“registered pension scheme” means a pension scheme that is or has been a registered pension scheme within the meaning of Part 4 of FA 2004 or in relation to which an application for registration under that Part of that Act has been made;
“responsible person”, in relation to an employer-financed retirement benefits scheme, has the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see section 399A of that Act);
“scheme administrator”, in relation to a pension scheme, has the same meaning as in Part 4 of FA 2004 (see section 270 of that Act);
“scheme manager”, in relation to a pension scheme, has the meaning given by section 169(3) of FA 2004.
Groups of undertakings
35 (1) This paragraph applies where an undertaking is a parent undertaking in relation to another undertaking (a subsidiary undertaking).
(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,—
(a) paragraph 2(2) only requires the notice to state this and name the parent undertaking , 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.
(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) paragraphs 21 and 21A (restrictions on giving taxpayer notice where taxpayer has made return) apply 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 —
(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.
(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)).
Change of ownership of companies
36 (1) Sub-paragraph (2) applies where it appears to the Commissioners that—
(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 710 or 713 of CTA 2010.
(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) Chapter 7 of Part 14 of CTA 2010 applies for the purposes of determining when there has been a change in the ownership of a company.
Partnerships
37 (1) This paragraph applies where a business is carried on by two or more persons in partnership.
(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.
(2A) Where, in respect of a transaction entered into as purchaser by or on behalf of the members of the partnership, any of the partners has—
(a) delivered a land transaction return under Part 4 of FA 2003 (stamp duty land tax), or
(b) made a claim under that Part of that Act,
paragraph 21A (restrictions where taxpayer has delivered land transaction return) has effect as if that return had been delivered, or that claim had been made, by each of the partners.
(2B) Where, in respect of a single-dwelling interest (see paragraph 21B(7)) to which one or more companies are or were entitled as members of a partnership, any member of the partnership has—
(a) delivered an annual tax on enveloped dwellings return or a return of the adjusted chargeable amount under Part 3 of FA 2013, or
(b) made a claim under that Part of that Act,
paragraph 21B (restrictions where taxpayer has delivered return) has effect as if that return had been delivered, or that claim had been made, by each member of the partnership.
(3) Where a third party notice is given ... for the purpose of checking the tax position of more than one of the partners (in their capacity as such), —
(a) paragraph 2(2) only requires the notice to state this and give a name in which the partnership is registered for any purpose , 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 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 any of the partners in the partnership.
(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 —
(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.
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Information in connection with herd basis election
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—
(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
37B (1) This paragraph applies to a taxpayer notice given to a person if—
(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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) section 684 of ITA 2007 (person liable to counteraction of income tax advantage), or
(c) section 733 of CTA 2010 (company liable to counteraction of corporation tax advantage).
Specified relevant transfer pricing documents
37C (1) This paragraph applies to an information notice given to a relevant person in an MNE Group (“A”) to the extent that the notice refers to specified relevant transfer pricing documents.
(2) Paragraph 18 (documents not in person’s possession or power) does not apply in relation to a specified relevant transfer pricing document that—
(a) is not in A’s possession or power, but
(b) is in the power or possession of another relevant person in the MNE Group concerned (“B”),
(and accordingly the information notice may require A to produce the document).
(3) For the purposes of this paragraph—
(a) documents are “specified relevant transfer pricing documents” if—
(i) they are relevant transfer pricing records specified, or of a description specified, in regulations under section 12B of TMA 1970 or paragraph 21 of Schedule 18 to FA 1998 (duties to keep and preserve records), and
(ii) A is required to keep and preserve those records under either or both of those provisions;
(b) “MNE Group” has the same meaning as in the Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) Regulations 2016 (S.I. 2016/237) (see regulation 2(3) of those Regulations);
(c) “relevant person in an MNE Group” means—
(i) a company,
(ii) a trustee of a trust, or
(iii) a partner in a partnership,
where that company, the trustees or the partnership, together with one or more other enterprises, constitutes an MNE Group.
Application to the Crown
38 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)).
Part 7 Penalties
... penalties for failure to comply or obstruction
39 (1) This paragraph applies to a person who—
(a) fails to comply with an information notice, or
(b) deliberately obstructs an officer of Revenue and Customs in the course of an inspection under Part 2 of this Schedule that has been approved by the tribunal.
(2) The person is liable to a penalty of £300.
(3) The reference in this paragraph to a person who fails to comply with an information notice includes a person who conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document in breach of paragraph 42 or 43.
Daily default penalties
40 (1) This paragraph applies if the failure or obstruction mentioned in paragraph 39(1) continues after the date on which a penalty is imposed under that paragraph in respect of the failure or obstruction.
(2) The person is liable to a further penalty or penalties not exceeding £60 for each subsequent day on which the failure or obstruction continues.
Penalties for inaccurate information and documents
40A (1) This paragraph applies if—
(a) in complying with an information notice, a person provides inaccurate information or produces a document that contains an inaccuracy, and
(b) condition A, B or C is met.
(2) Condition A is that the inaccuracy is careless or deliberate.
(3) An inaccuracy is careless if it is due to a failure by the person to take reasonable care.
(3A) Condition B is that the person knows of the inaccuracy at the time the information is provided or the document produced but does not inform HMRC at that time.
(4) Condition C is that the person—
(a) discovers the inaccuracy some time later, and
(b) fails to take reasonable steps to inform HMRC.
(5) The person is liable to a penalty not exceeding £3,000.
(6) Where the information or document contains more than one inaccuracy, a penalty is payable for each inaccuracy.
Power to change amount of ... penalties
41 (1) If it appears to the Treasury that there has been a change in the value of money since the last relevant date, they may by regulations substitute for the sums for the time being specified in paragraphs 39(2) , 40(2) and 40A(5) such other sums as appear to them to be justified by the change.
(2) In sub-paragraph (1) , in relation to a specified sum, “relevant date” means—
(a) the date on which this Act is passed, and
(b) each date on which the power conferred by that sub-paragraph has been exercised in relation to that sum.
(3) Regulations under this paragraph do not apply to —
(a) any failure or obstruction which began before the date on which they come into force , or
(b) an inaccuracy in any information or document provided to HMRC before that date.
Concealing, destroying etc documents following information notice
42 (1) A person must not conceal, destroy or otherwise dispose of, or arrange for the concealment, destruction or disposal of, a document that is the subject of an information notice addressed to the person (subject to sub-paragraphs (2) and (3)).
(2) Sub-paragraph (1) does not apply if the person acts after the document has been produced to an officer of Revenue and Customs in accordance with the information notice, unless an officer of Revenue and Customs has notified the person in writing that the document must continue to be available for inspection (and has not withdrawn the notification).
(3) Sub-paragraph (1) does not apply, in a case to which paragraph 8(1) applies, if the person acts after the expiry of the period of 6 months beginning with the day on which a copy of the document was produced in accordance with that paragraph unless, before the expiry of that period, an officer of Revenue and Customs made a request for the original document under paragraph 8(2)(b).
Concealing, destroying etc documents following informal notification
43 (1) A person must not conceal, destroy or otherwise dispose of, or arrange for the concealment, destruction or disposal of, a document if an officer of Revenue and Customs has informed the person that the document is, or is likely, to be the subject of an information notice addressed to that person (subject to sub-paragraph (2)).
(2) Sub-paragraph (1) does not apply if the person acts after—
(a) at least 6 months has expired since the person was, or was last, so informed, or
(b) an information notice has been given to the person requiring the document to be produced.
Failure to comply with time limit
44 A failure by a person to do anything required to be done within a limited period of time does not give rise to liability to a penalty under paragraph 39 or 40 if the person did it within such further time, if any, as an officer of Revenue and Customs may have allowed.
Reasonable excuse
45 (1) Liability to a penalty under paragraph 39 or 40 does not arise if the person satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that there is a reasonable excuse for the failure or the obstruction of an officer of Revenue and Customs.
(2) For the purposes of this paragraph—
(a) an insufficiency of funds is not a reasonable excuse unless attributable to events outside the person's control,
(b) where the person relies on any other person to do anything, that is not a reasonable excuse unless the first person took reasonable care to avoid the failure or obstruction, and
(c) where the person had a reasonable excuse for the failure or obstruction but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied, or the obstruction stops, without unreasonable delay after the excuse ceased.
Assessment of ... penalty
46 (1) Where a person becomes liable for a penalty under paragraph 39 , 40 or 40A, ... —
(a) HMRC may assess the penalty, and
(b) if they do so, they must notify the person.
(2) An assessment of a penalty under paragraph 39 or 40 must be made within the period of 12 months beginning with the date on which the person became liable to the penalty, subject to sub-paragraph (3).
(3) In a case involving an information notice against which a person may appeal, an assessment of a penalty under paragraph 39 or 40 must be made within the period of 12 months beginning with the latest of the following—
(a) the date on which the person became liable to the penalty,
(b) the end of the period in which notice of an appeal against the information notice could have been given, and
(c) if notice of such an appeal is given, the date on which the appeal is determined or withdrawn.
(4) An assessment of a penalty under paragraph 40A must be made—
(a) within the period of 12 months beginning with the date on which the inaccuracy first came to the attention of an officer of Revenue and Customs, and
(b) within the period of 6 years beginning with the date on which the person became liable to the penalty.
Right to appeal against ... penalty
47 (1) A person may appeal ... against any of the following decisions of an officer of Revenue and Customs—
(a) a decision that a penalty is payable by that person under paragraph 39 , 40 or 40A, or
(b) a decision as to the amount of such a penalty.
(2) But sub-paragraph (1)(b) does not give a right of appeal against the amount of an increased daily penalty payable as a result of paragraph 49A.
Procedure on appeal against ... penalty
48 (1) Notice of an appeal under paragraph 47 must be given—
(a) in writing,
(b) before the end of the period of 30 days beginning with the date on which the notification under paragraph 46 was issued, and
(c) to HMRC.
(2) Notice of an appeal under paragraph 47 must state the grounds of appeal.
(3) On an appeal under paragraph 47(1)(a) that is notified to the tribunal, the tribunal may confirm or cancel the decision.
(4) On an appeal under paragraph 47(1)(b) that is notified to the tribunal, the tribunal may—
(a) confirm the decision, or
(b) substitute for the decision another decision that the officer of Revenue and Customs had power to make.
(5) Subject to this paragraph and paragraph 49, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to appeals under this Part of this Schedule as they have effect in relation to an appeal against an assessment to income tax.
Enforcement of ... penalty
49 (1) A penalty under paragraph 39 , 40 or 40A must be paid—
(a) before the end of the period of 30 days beginning with the date on which the notification under paragraph 46 was issued, or
(b) if a notice of an appeal against the penalty is given, before the end of the period of 30 days beginning with the date on which the appeal is determined or withdrawn.
(2) A penalty under paragraph 39 , 40 or 40A may be enforced as if it were income tax charged in an assessment and due and payable.
Increased daily default penalty
49A (1) This paragraph applies if—
(a) a penalty under paragraph 40 is assessed under paragraph 46 in respect of a person's failure to comply with a notice under paragraph 5,
(b) the failure continues for more than 30 days beginning with the date on which notification of that assessment was issued, and
(c) the person has been told that an application may be made under this paragraph for an increased daily penalty to be assessable.
(2) If this paragraph applies, an officer of Revenue and Customs may make an application to the tribunal for an increased daily penalty to be assessable on the person.
(3) If the tribunal decides that an increased daily penalty should be assessable—
(a) the tribunal must determine the day from which the increased daily penalty is to apply and the maximum amount of that penalty (“the new maximum amount”), and
(b) from that day, paragraph 40(2) has effect in the person's case as if the new maximum amount were substituted for the amount for the time being specified there.
(4) The new maximum amount may not be more than £1,000.
(5) But subject to that, in determining the new maximum amount the tribunal must have regard to—
(a) the likely cost to the person of complying with the notice,
(b) any benefits to the person of not complying with it, and
(c) any benefits to anyone else resulting from the person's non-compliance.
(6) Paragraph 41 applies in relation to the sum specified in sub-paragraph (4) as it applies in relation to the sums mentioned in paragraph 41(1) but as if the reference in paragraph 41(2)(a) to this Act were to FA 2021.
49B (1) If the tribunal makes a determination under paragraph 49A, HMRC must notify the person.
(2) The notification must specify the new maximum amount and the day from which it applies.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax-related penalty
50 (1) This paragraph applies where—
(a) a person becomes liable to a penalty under paragraph 39,
(b) the failure or obstruction continues after a penalty is imposed under that paragraph,
(c) an officer of Revenue and Customs has reason to believe that, as a result of the failure or obstruction, the amount of tax that the person has paid, or is likely to pay, is significantly less than it would otherwise have been,
(d) before the end of the period of 12 months beginning with the relevant date ..., an officer of Revenue and Customs makes an application to the Upper Tribunal for an additional penalty to be imposed on the person, and
(e) the Upper Tribunal decides that it is appropriate for an additional penalty to be imposed.
(2) The person is liable to a penalty of an amount decided by the Upper Tribunal.
(3) In deciding the amount of the penalty, the Upper Tribunal must have regard to the amount of tax which has not been, or is not likely to be, paid by the person.
(4) Where a person becomes liable to a penalty under this paragraph, HMRC must notify the person.
(5) Any penalty under this paragraph is in addition to the penalty or penalties under paragraph 39 or 40.
(6) In the application of the following provisions, no account shall be taken of a penalty under this paragraph—
(a) section 97A of TMA 1970 (multiple penalties),
(b) paragraph 12(2) of Schedule 24 to FA 2007 (interaction with other penalties), and
(c) paragraph 15(1) of Schedule 41 (interaction with other penalties).
(7) In sub-paragraph (1)(d) “the relevant date” means—
(a) in a case involving an information notice against which a person may appeal, the latest of—
(i) the date on which the person became liable to the penalty under paragraph 39,
(ii) the end of the period in which notice of an appeal against the information notice could have been given, and
(iii) if notice of such an appeal is given, the date on which the appeal is determined or withdrawn, and
(b) in any other case, the date on which the person became liable to the penalty under paragraph 39.
Enforcement of tax-related penalty
51 (1) A penalty under paragraph 50 must be paid before the end of the period of 30 days beginning with the date on which the notification of the penalty is issued.
(2) A penalty under paragraph 50 may be enforced as if it were income tax charged in an assessment and due and payable.
Disclosure of third party or financial institution notice
51A (1) This paragraph applies if—
(a) a person (“P”) is given a third party notice or financial institution notice (“the notice”), and
(b) the tribunal has disapplied the requirement in paragraph 4(1) or 4A(7)(a) (as the case may be) to give a copy of the notice to the taxpayer to whom it relates.
(2) The notice may include a requirement that P must not disclose the notice, or anything relating to it, to—
(a) the taxpayer to whom the notice relates, or
(b) any other person, except for a purpose relating to compliance with the notice.
(3) A requirement imposed under sub-paragraph (2) has effect for a period of 12 months beginning with the day on which P is given the notice unless, before the end of that period—
(a) the requirement is withdrawn in accordance with sub-paragraph (4), or
(b) the period is extended in accordance with sub-paragraph (5).
(4) An officer of Revenue and Customs may, by notice in writing to P, withdraw a requirement imposed under sub-paragraph (2).
(5) An officer of Revenue and Customs may—
(a) by notice in writing to P, extend the period for which a requirement imposed under sub-paragraph (2) has effect for a further period of 12 months (beginning with the day after the last day of the previous period), and
(b) do so on one or more occasions.
(6) An officer of Revenue and Customs may act under sub-paragraph (4) or (5) only if—
(a) the officer is an authorised officer of Revenue and Customs, or
(b) an authorised officer of Revenue and Customs has agreed to the withdrawal of the requirement or the extension of the period (as the case may be).
(7) An authorised officer of Revenue and Customs may only extend, or agree to the extension of, a period under sub-paragraph (5) if that officer has reasonable grounds for believing that not doing so might prejudice the assessment or collection of tax.
51B (1) A person who breaches a requirement imposed under paragraph 51A (not to disclose a notice or anything relating to it) is liable to a penalty of £1,000.
(2) If a person becomes liable for a penalty under sub-paragraph (1)—
(a) HMRC may assess the penalty, and
(b) if they do so, they must notify the person.
(3) The assessment must be made within the period of 12 months beginning with the date on which the breach of the requirement first came to the attention of an officer of Revenue and Customs.
(4) Paragraph 41 applies in relation to the sum specified in sub-paragraph (1) above as it applies in relation to the sums mentioned in paragraph 41(1) but as if—
(a) the reference in paragraph 41(2)(a) to this Act were to FA 2021, and
(b) paragraph 41(3) prevented the regulations from applying to any breach committed before the date on which the regulations come into force.
51C (1) A person may appeal a decision of an officer of Revenue and Customs that a penalty is payable by the person under paragraph 51B.
(2) Paragraph 48 (procedure on appeal against penalty) applies in relation to an appeal under this paragraph as it applies in relation to an appeal under paragraph 47(1)(a) but as if the reference to the notification under paragraph 46 were to the notification under paragraph 51B(2)(b).
(3) Paragraph 49 (enforcement of penalty) applies in relation to a penalty under paragraph 51B as it applies in relation to a penalty under paragraph 39 but as if the reference to the notification under paragraph 46 were to the notification under paragraph 51B(2)(b).
Double jeopardy
52 A person is not liable to a penalty under this Schedule in respect of anything in respect of which the person has been convicted of an offence.
Part 8 Offence
Concealing etc documents following information notice
53 (1) A person is guilty of an offence (subject to sub-paragraphs (2) and (3)) if—
(a) the person is required to produce a document by an information notice,
(b) the tribunal approved the giving of the notice in accordance with paragraph 3 or 5, and
(c) the person conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, that document.
(2) Sub-paragraph (1) does not apply if the person acts after the document has been produced to an officer of Revenue and Customs in accordance with the information notice, unless an officer of Revenue and Customs has notified the person in writing that the document must continue to be available for inspection (and has not withdrawn the notification).
(3) Sub-paragraph (1) does not apply, in a case to which paragraph 8(1) applies, if the person acts after the expiry of the period of 6 months beginning with the day on which a copy of the document was so produced unless, before the expiry of that period, an officer of Revenue and Customs made a request for the original document under paragraph 8(2)(b).
Concealing etc documents following informal notification
54 (1) A person is also guilty of an offence (subject to sub-paragraph (2)) if the person conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of a document after the person has been informed by an officer of Revenue and Customs in writing that—
(a) the document is, or is likely, to be the subject of an information notice addressed to that person, and
(b) an officer of Revenue and Customs intends to seek the approval of the tribunal to the giving of the notice under paragraph 3 or 5 in respect of the document.
(2) A person is not guilty of an offence under this paragraph if the person acts after—
(a) at least 6 months has expired since the person was, or was last, so informed, or
(b) an information notice has been given to the person requiring the document to be produced.
Fine or imprisonment
55 A person who is guilty of an offence under this Part of this Schedule is liable—
(a) on summary conviction, to a fine not exceeding the statutory maximum, and
(b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
Part 9 Miscellaneous provisions and interpretation
Application of provisions of TMA 1970
56 Subject to the provisions of this Schedule, the following provisions of TMA 1970 apply for the purposes of this Schedule as they apply for the purposes of the Taxes Acts—
(a) section 108 (responsibility of company officers),
(b) section 114 (want of form), and
(c) section 115 (delivery and service of documents).
Regulations under this Schedule
57 (1) Regulations made by the Commissioners or the Treasury under this Schedule are to be made by statutory instrument.
(2) A statutory instrument containing regulations under this Schedule is subject to annulment in pursuance of a resolution of the House of Commons.
General interpretation
58 In this Schedule—
“checking” includes carrying out an investigation or enquiry of any kind,
“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs,
“document” includes a part of a document (except where the context otherwise requires),
“enactment” includes subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)),
“HMRC” means Her Majesty's Revenue and Customs,
“premises” includes—
any building or structure,
any land, and
any means of transport,
“the Taxes Acts” means—
TMA 1970,
the Tax Acts, and
TCGA 1992 and all other enactments relating to capital gains tax, ...
“taxpayer”, in relation to a taxpayer notice or a third party notice, has the meaning given in paragraph 1(1) or 2(1) (as appropriate) , and .
“tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.
Authorised officer of Revenue and Customs
59 A reference in a provision of this Schedule to an authorised officer of Revenue and Customs is a reference to an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by the Commissioners for the purpose of that provision.
Business
60 (1) In this Schedule (subject to regulations under this paragraph), references to carrying on a business include—
(a) the letting of property,
(b) the activities of a charity, and
(c) the activities of a government department, a local authority, a local authority association and any other public authority.
(1A) A person who under section 41 of FA 1996 is liable to pay landfill tax charged on a taxable disposal is treated for the purposes of this Schedule (subject to regulations under this paragraph) as carrying on a business.
(2) In sub-paragraph (1)—
...
“local authority” has the meaning given in section 999 of ITA 2007, and
“local authority association” has the meaning given in section 1000 of that Act.
(3) The Commissioners may by regulations provide that for the purposes of this Schedule—
(a) the carrying on of an activity specified in the regulations, or
(b) the carrying on of such an activity (or any activity) by a person specified in the regulations,
is or is not to be treated as the carrying on of a business.
Chargeable period
61 In this Schedule “chargeable period” means—
(a) in relation to income tax or capital gains tax, a tax year, and
(b) in relation to corporation tax, an accounting period.
Financial institution
61ZA (1) In this Schedule “financial institution” means—
(a) a financial institution under the CRS other than one which is such an institution because (and only because) it is an investment entity within section VIII (A)(6)(b) of the CRS, or
(b) a person who issues credit cards.
(2) In this paragraph “the CRS” means the common reporting standard for automatic exchange of financial account information developed by the Organisation for Economic Co-operation and Development, as that standard has effect from time to time.
Involved third parties
61A (1) In this Schedule “involved third party” means a person described in the first column of the Table below.
(2) In this Schedule, in relation to an involved third party, ... “relevant document” and “relevant tax” have the meaning given in the corresponding entries in that Table.
Involved third party | Relevant ... documents | Relevant tax
1. | A body approved by an officer of Revenue and Customs for the purpose of paying donations within the meaning of Part 12 of ITEPA 2003 (donations to charity: payroll giving) (see section 714 of that Act) | Documents relating to the donations | Income tax
2. | A plan manager (see section 696 of ITTOIA 2005 (managers of individual investment plans)) | Documents relating to the plan, including investments which are or have been held under the plan | Income tax
3. | An account provider in relation to a child trust fund (as defined in section 3 of the Child Trust Funds Act 2004) | Documents relating to the fund, including investments which are or have been held under the fund | Income tax
4. | A person who is or has been registered as a managing agent at Lloyd's in relation to a syndicate of underwriting members of Lloyd's | Documents relating to, and to the activities of, the syndicate | Income tax Capital gains tax Corporation tax
5. | A person involved (in any capacity) in an insurance business (as defined for the purposes of Part 3 of FA 1994) | Documents relating to contracts of insurance entered into in the course of the business | Insurance premium tax
6. | A person who makes arrangements for persons to enter into contracts of insurance | Documents relating to the contracts | Insurance premium tax
7. | A person who— is concerned in a business that is not an insurance business (as defined for the purposes of Part 3 of FA 1994), and has been involved in the entry into a contract of insurance providing cover for any matter associated with that business | Documents relating to the contracts | Insurance premium tax
8. | A person who, in relation to a charge to stamp duty reserve tax on an agreement, transfer, issue, appropriation or surrender, is an accountable person (as defined in regulation 2 of the Stamp Duty Reserve Tax Regulations S.I. 1986/1711 (as amended from time to time)) | Documents relating to the agreement, transfer, issue, appropriation or surrender | Stamp duty reserve tax
9. | A responsible person in relation to an oil field (as defined for the purposes of Part 1 of OTA 1975) | Documents relating to the oil field | Petroleum revenue tax
10. | A person involved (in any capacity) in subjecting aggregate to exploitation in the United Kingdom (as defined for the purposes of Part 2 of FA 2001) or in connected activities | Documents relating to matters in which the person is or has been involved | Aggregates levy
11. | A person involved (in any capacity) in making or receiving supplies of taxable commodities (as defined for the purposes of Schedule 6 to FA 2000) or in connected activities | Documents relating to matters in which the person is or has been involved | Climate change levy
12. | A person involved (in any capacity) with any disposal of material (as defined for the purposes of Part 3 of FA 1996) | Documents relating to the disposal | Landfill tax
13. | A person involved (in any capacity) in the production, or importation to or exportation from the United Kingdom, of packaging components (within the meaning of section 48 of FA 2021) or in connected activities | Documents relating to matters in which the person is or has been involved | Plastic packaging tax
14. | A person involved (in any capacity) in the purchase or sale of plastic packaging components (within the meaning of section 48 of FA 2021) or of goods packaged in such components | Documents relating to matters in which the person is or has been involved | Plastic packaging tax
15. | A person involved (in any capacity) in the production, or importation to or exportation from the United Kingdom, of CBAM goods (within the meaning of section 2 of FA 2026) or in connected activities | Documents relating to matters in which the person is or has been involved | Carbon border adjustment mechanism
16. | A person involved (in any capacity) in the supply, storage purchase, sale or transportation of CBAM goods (within the meaning of section 2 of FA 2026) | Documents relating to matters in which the person is or has been involved | Carbon border adjustment mechanism
Statutory records
62 (1) For the purposes of this Schedule, information or a document forms part of a person's statutory records if it is information or a document which the person is required to keep and preserve under or by virtue of—
(a) the Taxes Acts, or
(b) any other enactment relating to a tax,
subject to the following provisions of this paragraph.
(2) To the extent that any information or document that is required to be kept and preserved under or by virtue of the Taxes Acts—
(a) does not relate to the carrying on of a business, and
(b) is not also required to be kept or preserved under or by virtue of any other enactment relating to a tax,
it only forms part of a person's statutory records to the extent that the chargeable period or periods to which it relates has or have ended.
(3) Information and documents cease to form part of a person's statutory records when the period for which they are required to be preserved by the enactments mentioned in sub-paragraph (1) has expired.
Tax
63 (1) In this Schedule, except where the context otherwise requires, “tax” means all or any of the following—
(a) income tax,
(b) capital gains tax,
(c) corporation tax,
(ca) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(cb) apprenticeship levy,
(cc) digital services tax,
(cd) multinational top-up tax;
(ce) domestic top-up tax;
(d) VAT,
(e) insurance premium tax,
(f) inheritance tax,
(g) stamp duty land tax,
(h) stamp duty reserve tax,
(ha) annual tax on enveloped dwellings,
(i) petroleum revenue tax,
(iza) plastic packaging tax,
(izb) economic crime (anti-money laundering) levy,
(ia) soft drinks industry levy,
(j) aggregates levy,
(k) climate change levy,
(ka) carbon border adjustment mechanism,
(l) landfill tax, and
(m) relevant foreign tax,
and references to “a tax” are to be interpreted accordingly.
(2) In this Schedule “corporation tax” includes any amount assessable or chargeable as if it were corporation tax.
(3) In this Schedule “VAT” means—
(a) value added tax charged in accordance with VATA 1994, ...
(b) ... and
(c) amounts listed in sub-paragraph (3A).
(3A) Those amounts are—
(a) any amount that is recoverable under paragraph 5(2) of Schedule 11 to VATA 1994 (amounts shown on invoices as VAT), and
(b) any amount that is treated as VAT by virtue of regulations under section 54 of VATA 1994 (farmers etc).
(4) In this Schedule “relevant foreign tax” means—
(a) a tax of a member State, other than the United Kingdom, which is covered by the provisions for the exchange of information under Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation (as amended from time to time), and
(b) any tax or duty which is imposed under the law of a territory in relation to which arrangements having effect by virtue of section 173 of FA 2006 (international tax enforcement arrangements) have been made and which is covered by the arrangements.
Tax debts: collection
63A (1) In this Schedule a reference to collecting a tax debt of a person is a reference to taking any steps for, or in connection with, the recovery of—
(a) an amount of tax due from the person, or
(b) any other amount due from the person in connection with any tax.
(2) It does not matter whether or not another person is, or has been, at any time liable to pay the tax or other amount.
Tax debts: extended meaning of “relevant foreign tax”
63B Where this Schedule applies for the purpose of collecting a tax debt of a person, “relevant foreign tax” is to be taken to include (in addition to what is mentioned in paragraph 63(4)) any tax or duty which is covered by the provisions for the exchange of information under Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures (as it had effect immediately before IP completion day).
Tax position
64 (1) In this Schedule, except as otherwise provided, “tax position”, in relation to a person, means the person's position as regards any tax, including the person's position as regards—
(a) past, present and future liability to pay any tax,
(b) penalties and other amounts that have been paid, or are or may be payable, by or to the person in connection with any tax, and
(c) claims, elections, applications and notices that have been or may be made or given in connection with the person's liability to pay any tax,
and references to a person's position as regards a particular tax (however expressed) are to be interpreted accordingly.
(2) References in this Schedule to a person's tax position include, where appropriate, a reference to the person's position as regards any deductions or repayments of tax, or of sums representing tax, that the person is required to make—
(a) under PAYE regulations,
(b) under Chapter 3 of Part 3 of FA 2004 or regulations made under that Chapter (construction industry scheme), or
(c) by or under any other provision of the Taxes Acts.
(2A) References in this Schedule to a person's tax position also include, where appropriate, a reference to the person's position as regards the withholding by the person of another person's PAYE income (as defined in section 683 of ITEPA 2003).
(3) References in this Schedule to the tax position of a person include the tax position of—
(a) a company that has ceased to exist, and
(b) an individual who has died.
(4) References in this Schedule to a person's tax position are to the person's tax position at any time or in relation to any period, unless otherwise stated.
Part 10 Consequential provisions
TMA 1970
65 TMA 1970 is amended as follows.
66 Omit section 19A (power to call for documents for purposes of enquiries).
67 Omit section 20 (power to call for documents of taxpayer and others).
68 (1) Section 20B (restrictions on powers to call for documents under ss20 and 20A) is amended as follows.
(2) In the heading, for “ss 20 and” substitute “ section ”.
(3) In subsection (1)—
(a) omit “under section 20(1), (3) or (8A), or”,
(b) omit “(or, in the case of section 20(3), to deliver or make available)”,
(c) omit “, or to furnish the particulars in question”, and
(d) omit “section 20(7) or (8A) or, as the case may be,”.
(4) Omit subsections (1A) and (1B).
(5) In subsection (2), omit from the beginning to “taxpayer; and”.
(6) In subsection (3)—
(a) omit “under section 20(1) or (3) or”, and
(b) omit “section 20(3) and (4) and”.
(7) In subsection (4)—
(a) omit “section 20(1) or”, and
(b) omit “, and as an alternative to delivering documents to comply with a notice under section 20(3) or (8A)”.
(8) Omit subsections (5), (6) and (7).
(9) In subsection (8), omit “section 20(3) or (8A) or”.
(10) Omit subsections (9) to (14).
69 (1) Section 20BB (falsification etc. of documents) is amended as follows.
(2) In subsection (1)(a), omit “20 or”.
(3) In subsection (2)(b), omit “or, in a case within section 20(3) or (8A) above, inspected”.
70 (1) Section 20D (interpretation) is amended as follows.
(2) In subsection (2), for “sections 20 and” substitute “ section ”.
(3) Omit subsection (3).
71 In section 29(6)(c) (assessment where loss of tax discovered), omit “, whether in pursuance of a notice under section 19A of this Act or otherwise”.
72 Omit section 97AA (failure to produce documents under section 19A).
73 In section 98 (penalties), in the Table—
(a) in the first column, omit the entry for section 767C of ICTA, and
(b) in the second column, omit the entry for section 28(2) of F(No.2)A 1992.
74 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75 (1) Section 107A (relevant trustees) is amended as follows.
(2) In subsection (2)(a), for “, 95 or 97AA” substitute “ or 95 ”.
(3) In subsection (3)(a), omit “or 97AA(1)(b)”.
76 In section 118 (interpretation), in the definition of “tax”, omit “20,”.
77 In Schedule 1A (claims etc. not included in returns), omit paragraphs 6 and 6A (power to call for documents for purposes of enquiries and power to appeal against notice to produce documents).
National Savings Bank Act 1971 (c. 29)
78 In section 12(3) (secrecy), for the words from “and of section 20(3)” to the end substitute “ and of Schedule 36 to the Finance Act 2008 (powers of officers of Revenue and Customs to obtain information and documents and inspect business premises) ”.
ICTA
79 ICTA is amended as follows.
80 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81 Omit section 767C (change in company ownership: information).
82 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FA 1990
83 In section 125 of FA 1990 (information for tax authorities in other member States)—
(a) omit subsections (1) and (2),
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social Security Administration Act 1992 (c. 5)
84 In section 110ZA of the Social Security Administration Act 1992 (Class 1, 1A, 1B or 2 contributions: powers to call for documents etc), for subsections (1) and (2) substitute—
(1) Schedule 36 to the Finance Act 2008 (information and inspection powers) applies for the purpose of checking a person's position as regards relevant contributions as it applies for the purpose of checking a person's tax position, subject to the modifications in subsection (2).
(2) That Schedule applies as if—
(a) references to any provision of the Taxes Acts were to any provision of this Act or the Contributions and Benefits Act relating to relevant contributions,
(b) references to prejudice to the assessment or collection of tax were to prejudice to the assessment of liability for, and payment of, relevant contributions,
(c) the reference to information relating to the conduct of a pending appeal relating to tax were a reference to information relating to the conduct of a pending appeal relating to relevant contributions, and
(d) paragraphs 21, 35(4)(b), 36 and 37(2) of that Schedule (restrictions on giving taxpayer notice where taxpayer has made tax return) were omitted.
Social Security Administration (Northern Ireland) Act 1992 (c. 8)
85 In section 104ZA of the Social Security Administration (Northern Ireland) Act 1992 (Class 1, 1A, 1B or 2 contributions: powers to call for documents etc), for subsections (1) and (2) substitute—
(1) Schedule 36 to the Finance Act 2008 (information and inspection powers) applies for the purpose of checking a person's position as regards relevant contributions as it applies for the purpose of checking a person's tax position, subject to the modifications in subsection (2).
(2) That Schedule applies as if—
(a) references to any provision of the Taxes Acts were to any provision of this Act or the Contributions and Benefits Act relating to relevant contributions,
(b) references to prejudice to the assessment or collection of tax were to prejudice to the assessment of liability for, and payment of, relevant contributions,
(c) the reference to information relating to the conduct of a pending appeal relating to tax were a reference to information relating to the conduct of a pending appeal relating to relevant contributions, and
(d) paragraphs 21, 35(4)(b), 36 and 37(2) of that Schedule (restrictions on giving taxpayer notice where taxpayer has made tax return) were omitted.
F(No.2)A 1992
86 Omit section 28(1) to (3) (powers of inspection).
VATA 1994
87 (1) Schedule 11 to VATA 1994 is amended as follows.
(2) In paragraph 7 (furnishing information and producing documents), omit sub-paragraphs (2) to (9).
(3) In paragraph 10 (entry and search of premises and persons), omit sub-paragraphs (1) to (2A).
FA 1998
88 In Schedule 18 to FA 1998 (company tax returns), omit paragraphs 27, 28 and 29 (notice to produce documents etc. for purposes of enquiry into company tax return, power to appeal against such notices and penalty for failure to produce documents etc).
FA 1999
89 In section 13(5) (gold), omit paragraph (c).
Tax Credits Act 2002 (c. 21)
90 In section 25 of the Tax Credits Act 2002 (payments of working tax credit by employers), omit subsections (3) and (4).
FA 2006
91 Omit section 174 of FA 2006 (international tax enforcement arrangements: information powers).
Other repeals
92 In consequence of the preceding provisions of this Part of this Schedule, omit the following—
(a) section 126 of FA 1988,
(b) sections 142(2), (3), (4), (6)(a), (7), (8) and (9) and 144(3), (5) and (7) of FA 1989,
(c) sections 187 and 255 of, and paragraph 29 of Schedule 19 to, FA 1994,
(d) paragraph 6 of Schedule 1 to the Civil Evidence Act 1995 (c. 38),
(e) paragraph 17 of Schedule 3, paragraph 3 of Schedule 19 and paragraph 2 of Schedule 22 to FA 1996,
(f) section 115 of, and paragraphs 36 and 42(6) and (7) of Schedule 19 to, FA 1998,
(g) section 15(3) of FA 1999,
(h) paragraphs 21 and 38(4) of Schedule 29 to FA 2001,
(i) section 20 of FA 2006, and
(j) paragraph 350 of Schedule 1 to ITA 2007.
Section 115
TMA 1970
1 TMA 1970 is amended as follows.
2 (1) Section 12B (records to be kept for purposes of income tax and capital gains tax returns) is amended as follows.
(2) In subsection (2)—
(a) in paragraph (b), for “in any other case” substitute “ otherwise ”, and
(b) after that paragraph insert— “ or (in either case) 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). ”
(3) In subsection (3), omit paragraph (b) and the “and” before it.
(4) After that subsection insert—
(3A) 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 section include, or do not include, records specified in the regulations, and
(b) provide that those records include supporting documents so specified.
(5) For subsection (4) substitute—
(4) The duty under subsection (1) or (2A) 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 subsection (4A) and any conditions or further exceptions specified in writing by the Commissioners for Her Majesty's Revenue and Customs.
(6) In subsection (4A), for “The records which fall within this subsection are” substitute “ Subsection (4)(b) does not apply in the case of the following kinds of records ”.
(7) After subsection (5B) insert—
(5C) Regulations under this section 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).
3 (1) Paragraph 2A of Schedule 1A (records to be kept for the purposes of claims) is amended as follows.
(2) After sub-paragraph (2) insert—
(2A) The Commissioners for Her Majesty's Revenue and Customs may by regulations—
(a) provide that the records required to be kept and preserved under sub-paragraph (1) include, or do not include, records specified in the regulations, and
(b) provide that those records include supporting documents so specified.
(3) For sub-paragraph (3) substitute—
(3) The duty under sub-paragraph (1) 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 sub-paragraph (3A) and any conditions or further exceptions specified in writing by the Commissioners for Her Majesty's Revenue and Customs.
(3A) Sub-paragraph (3)(b) does not apply in the case of records of the kinds specified in section 12B(4A) or paragraph 22(3) of Schedule 18 to the Finance Act 1998.
(4) Insert at the end—
(6) 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).
(7) In this paragraph “supporting documents” includes accounts, books, deeds, contracts, vouchers and receipts.
VATA 1994
4 Schedule 11 to VATA 1994 (administration, collection and enforcement) is amended as follows.
5 (1) Paragraph 6 (duty to keep records) is amended as follows.
(2) In sub-paragraph (3), for “require”, in the second place, substitute “ specify in writing (and different periods may be specified for different cases) ”.
(3) For sub-paragraphs (4) to (6) substitute—
(4) 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.
6 In paragraph 6A(7) (application of provisions of paragraph 6 where directions under paragraph 6A require records to be kept)—
(a) for “Sub-paragraphs (4) to (6) of paragraph 6 (preservation of information by means approved by the Commissioners) apply” substitute “ Sub-paragraph (4) of paragraph 6 (preservation of information) applies ”, and
(b) for “they apply” substitute “ it applies ”.
FA 1998
7 Schedule 18 to FA 1998 (company tax returns) is amended as follows.
8 (1) Paragraph 21 (duty to keep and preserve records) is amended as follows.
(2) In sub-paragraph (2), for the words from “for six years” to the end substitute “ until the end of the relevant day. ”
(3) After that sub-paragraph insert—
(2A) In this paragraph “relevant day” means—
(a) the sixth anniversary of the end of the period for which the company may be required to deliver a company tax return, or
(b) 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) In sub-paragraph (3), for “that six year period” substitute “ the relevant day ”.
(5) In sub-paragraph (4), for “that six year period” substitute “ the relevant day ”.
(6) After sub-paragraph (5) insert—
(5A) 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 so specified.
(5B) 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).
(7) In sub-paragraph (6), omit the first sentence.
9 (1) Paragraph 22 (preservation of information instead of original records) is amended as follows.
(2) For sub-paragraph (1) substitute—
(1) The duty under paragraph 21 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 sub-paragraph (3) and any conditions or exceptions specified in writing by the Commissioners for Her Majesty's Revenue and Customs.
(3) Omit sub-paragraph (2).
(4) In sub-paragraph (3), for “The records excluded from sub-paragraph (1) are” substitute “ Sub-paragraph (1)(b) does not apply in the case of the following kinds of records ”.
(5) Accordingly, in the heading before that paragraph, for “instead of original records” substitute “ etc ”.
Consequential provisions
10 In section 13(6) of FA 1999 (VAT and gold)—
(a) for “(6)” substitute “ (4) ”,
(b) after “above” insert “ , and to records kept in pursuance of such regulations, ”, and
(c) insert at the end “ and to records kept in pursuance of that paragraph ”.
11 In consequence of the amendments made by paragraph 2 omit—
(a) section 105(4)(b) of FA 1995, and
(b) section 124(2) and (6) of FA 1996.
Section 116
Amendments of Part 7 of FA 2004
1 Part 7 of FA 2004 (disclosure of tax avoidance schemes) is amended as follows.
2 (1) Section 308 (duties of promoter) is amended as follows.
(2) In subsection (1)—
(a) for “The promoter” substitute “ A person who is a promoter in relation to a notifiable proposal ”, and
(b) for “any” substitute “ the ”.
(3) In subsection (2)(a), for “a” substitute “ the ”.
(4) In subsection (3)—
(a) for “The promoter” substitute “ A person who is a promoter in relation to notifiable arrangements ”, and
(b) for “any notifiable” substitute “ the notifiable ”.
(5) For subsection (4) substitute—
(4) Subsection (4A) applies where a person complies with subsection (1) in relation to a notifiable proposal for arrangements and another person is—
(a) also a promoter in relation to the notifiable proposal or is a promoter in relation to a notifiable proposal for arrangements which are substantially the same as the proposed arrangements (whether they relate to the same or different parties), or
(b) a promoter in relation to notifiable arrangements implementing the notifiable proposal or notifiable arrangements which are substantially the same as notifiable arrangements implementing the notifiable proposal (whether they relate to the same or different parties).
(4A) Any duty of the other person under subsection (1) or (3) in relation to the notifiable proposal or notifiable arrangements is discharged if—
(a) the person who complied with subsection (1) has notified the identity and address of the other person to HMRC or the other person holds the reference number allocated to the proposed notifiable arrangements under section 311, and
(b) the other person holds the information provided to HMRC in compliance with subsection (1).
(4B) Subsection (4C) applies where a person complies with subsection (3) in relation to notifiable arrangements and another person is—
(a) a promoter in relation to a notifiable proposal for arrangements which are substantially the same as the notifiable arrangements (whether they relate to the same or different parties), or
(b) also a promoter in relation to the notifiable arrangements or notifiable arrangements which are substantially the same (whether they relate to the same or different parties).
(4C) Any duty of the other person under subsection (1) or (3) in relation to the notifiable proposal or notifiable arrangements is discharged if—
(a) the person who complied with subsection (3) has notified the identity and address of the other person to HMRC or the other person holds the reference number allocated to the notifiable arrangements under section 311, and
(b) the other person holds the information provided to HMRC in compliance with subsection (3).
3 In section 311(1) (arrangements to be given reference number)—
(a) after “complies” insert “ or purports to comply ”,
(b) omit “may within 30 days”,
(c) before “allocate” insert “ may within 30 days ”, and
(d) for “notify the person of that number” substitute
must notify that number to the person and (where the person is one who has complied or purported to comply with section 308(1) or (3)) to any other person—
(i) who is a promoter in relation to the notifiable proposal (or arrangements implementing the notifiable proposal) or the notifiable arrangements (or proposal implemented by the notifiable arrangements), and
(ii) whose identity and address has been notified to HMRC by the person.
4 For section 312 substitute—
Duty of promoter to notify client of number
312 (1) This section applies where a person who is a promoter in relation to notifiable arrangements is providing (or has provided) services to any person (“the client”) in connection with the notifiable arrangements.
(2) The promoter must, within 30 days after the relevant date, provide the client with prescribed information relating to any reference number (or, if more than one, any one reference number) that has been notified to the promoter (whether by HMRC or any other person) in relation to—
(a) the notifiable arrangements, or
(b) any arrangements substantially the same as the notifiable arrangements (whether involving the same or different parties).
(3) In subsection (2) “the relevant date” means the later of—
(a) the date on which the promoter becomes aware of any transaction which forms part of the notifiable arrangements, and
(b) the date on which the reference number is notified to the promoter.
(4) But where the conditions in subsection (5) are met the duty imposed on the promoter under subsection (2) to provide the client with information in relation to notifiable arrangements is discharged.
(5) Those conditions are that —
(a) the promoter is also a promoter in relation to a notifiable proposal and provides services to the client in connection with them both,
(b) the notifiable proposal and the notifiable arrangements are substantially the same, and
(c) the promoter has provided to the client, in a form and manner specified by HMRC, prescribed information relating to the reference number that has been notified to the promoter in relation to the proposed notifiable arrangements.
(6) HMRC may give notice that, in relation to notifiable arrangements specified in the notice, promoters are not under the duty under subsection (2) after the date specified in the notice.
Duty of client to notify parties of number
312A (1) This section applies where a person (a “client”) to whom a person who is a promoter in relation to notifiable arrangements or a notifiable proposal is providing (or has provided) services in connection with the notifiable arrangements or notifiable proposal receives prescribed information relating to the reference number allocated to the notifiable arrangements or proposed notifiable arrangements.
(2) The client must, within the prescribed period, provide prescribed information relating to the reference number to any other person—
(a) who the client might reasonably be expected to know is or is likely to be a party to the arrangements or proposed arrangements, and
(b) who might reasonably be expected to gain a tax advantage in relation to any relevant tax by reason of the arrangements or proposed arrangements.
(3) For the purposes of subsection (1) a tax is a “relevant tax” in relation to arrangements or arrangements proposed in a proposal of any description if it is prescribed in relation to arrangements or proposals of that description by regulations under section 306.
(4) HMRC may give notice that, in relation to notifiable arrangements or a notifiable proposal specified in the notice, persons are not under the duty under subsection (2) after the date specified in the notice.
(5) The duty under subsection (2) does not apply in prescribed circumstances.
5 (1) Section 313 (duty of parties to notifiable arrangements to notify HMRC of number etc) is amended as follows.
(2) In subsection (1)(a), omit “under section 311 by the Board or under section 312 by the promoter”.
(3) In subsection (3)—
(a) for “under subsection (1)” substitute “ made by HMRC ”,
(b) in paragraph (a), for “number and other information” substitute “ information prescribed under subsection (1) ”, and
(c) in paragraph (b), for “number and other information” substitute “ information prescribed under subsection (1) and such other information as is prescribed ”.
(4) Insert at the end—
(5) HMRC may give notice that, in relation to notifiable arrangements specified in the notice, persons are not under the duty under subsection (1) after the date specified in the notice.
6 For section 316 substitute—
Information to be provided in form and manner specified by HMRC
316 (1) HMRC may specify the form and manner in which information required to be provided by any of the information provisions must be provided if the provision is to be complied with.
(2) The “information provisions” are sections 308(1) and (3), 309(1), 310, 312(2), 312A(2) and 313(1) and (3).
Amendments of TMA 1970
7 (1) Section 98C of TMA 1970 (penalties for failure to comply with duties under Part 7 of FA 2004) is amended as follows.
(2) In subsection (2)—
(a) in paragraph (d), for “312(1)” substitute “ 312(2) ”, and
(b) after that paragraph (but before the “and”) insert—
(da) section 312A(2) (duty of client to notify parties of reference number),
.
(3) In subsection (3)—
(a) for “section 313(1)” substitute “ subsection (1) of section 313 ”, and
(b) after “etc.)” insert “ or regulations under subsection (3) of that section ”.
(4) In subsection (4), for “313(1)” (in both places) substitute “ subsection (1) of section 313 or regulations under subsection (3) of that section ”.
SCHEDULE 39 Time limits for assessments, claims etc.
Section 118
TMA 1970
1 TMA 1970 is amended as follows.
2 In section 28C(5)(a) (time limit for determination of tax where no return delivered and self-assessment superseding determination), for “five years” substitute “ 3 years ”.
3 In section 29(4) (assessment where loss of tax discovered), for “is attributable to fraudulent or negligent conduct on the part of” substitute “ was brought about carelessly or deliberately by ”.
4 In section 30B(5) (amendment of partnership statement where loss of tax discovered), for “is attributable to fraudulent or negligent conduct on the part of” substitute “ was brought about carelessly or deliberately by ”.
5 In section 33(1) (claim for error or mistake), for “not later than five years after the 31st January next following” substitute “ not more than 4 years after the end of ”.
6 In section 33A(2) (error or mistake in partnership return), for “not later than 31st January of Year 6” substitute “ not more than 4 years after the end of the year of assessment in question, or in which the relevant period ends, ”.
7 (1) Section 34 (ordinary time limit for assessments) is amended as follows.
(2) In subsection (1), for “not later than five years after the 31st January next following” substitute “ not more than 4 years after the end of ”.
(3) Accordingly, in the heading, for “six years” substitute “ 4 years ”.
8 In section 35 (time limit: income received after year for which it is assessable), for “within six years after” substitute “ not more than 4 years after the end of ”.
9 (1) Section 36 (fraudulent or negligent conduct) is amended as follows.
(2) For subsection (1) substitute—
(1) An assessment on a person in a case involving a loss of income tax or capital gains tax brought about carelessly by the person may be made at any time not more than 6 years after the end of the year of assessment to which it relates (subject to subsection (1A) and any other provision of the Taxes Acts allowing a longer period).
(1A) An assessment on a person in a case involving a loss of income tax or capital gains tax —
(a) brought about deliberately by the person,
(b) attributable to a failure by the person to comply with an obligation under section 7, or
(c) attributable to arrangements in respect of which the person has failed to comply with an obligation under section 309, 310 or 313 of the Finance Act 2004 (obligation of parties to tax avoidance schemes to provide information to Her Majesty's Revenue and Customs),
may be made at any time not more than 20 years after the end of the year of assessment to which it relates (subject to any provision of the Taxes Acts allowing a longer period).
(1B) In subsections (1) and (1A) references to a loss brought about by the person who is the subject of the assessment include a loss brought about by another person acting on behalf of that person.
(3) In subsection (2)—
(a) for “Where the person in default” substitute “ Where the person mentioned in subsection (1) or (1A) (“the person in default”) ”, and
(b) for “subsection (1) above” substitute “ subsection (1A) or (1B) ”.
(4) In subsection (3), after “(1)” insert “ or (1A) ”.
(5) In subsection (4), for “subsection (1)” substitute “ subsections (1) and (1A) ”.
(6) Accordingly, for the heading substitute “ Loss of tax brought about carelessly or deliberately etc ”.
10 In section 37A (effect of assessment where allowances transferred), for the words from “for the purpose” to “conduct” substitute “ in a case falling within section 36(1) or (1A) ”.
11 (1) Section 40 (assessment on personal representatives) is amended as follows.
(2) In subsection (1), for “beyond the end of the period of three years beginning with the 31st January next following” substitute “ more than 4 years after the end of ”.
(3) In subsection (2)—
(a) for the words from the beginning to “died” substitute “ In a case involving a loss of tax brought about carelessly or deliberately by a person who has died (or another person acting on that person's behalf before that person's death) ”, and
(b) for “before the end of the period of three years beginning with the 31st January next following” substitute “ not more than 4 years after the end of ”.
12 In section 43(1) (time limit for making claims), for “five years after the 31st January next following” substitute “ 4 years after the end of ”.
13 In section 43A(1)(b) (further assessments: claims etc), for the words from “attributable” to the end substitute “ brought about carelessly or deliberately by that person or by someone acting on behalf of that person. ”
14 In section 43C(1)(b) (consequential claims etc), for “attributable to fraudulent or negligent conduct on the part of” substitute “ brought about carelessly or deliberately by ”.
15 In section 118 (interpretation) insert at the end—
(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.
ICTA
16 ICTA is amended as follows.
17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FA 1991
27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TCGA 1992
28 TCGA 1992 is amended as follows.
29 In section 203(2) (claims in respect of certain capital losses), for “6 years” substitute “ 4 years ”.
30 In section 253(4A) (claims for relief for loans to traders)—
(a) in paragraph (a), for “on or before the fifth anniversary of the 31st January next following” substitute “ not more than 4 years after the end of ”, and
(b) in paragraph (b), for “6 years” substitute “ 4 years ”.
31 In section 279(5) (claims in respect of delayed remittance of gain from disposal of foreign assets)—
(a) in paragraph (a), for “at any time after the fifth anniversary of the 31st January next following” substitute “ more than 4 years after the end of ”, and
(b) in paragraph (b), for “6 years” substitute “ 4 years ”.
VATA 1994
32 VATA 1994 is amended as follows.
33 In section 33A(4) (refunds of VAT to museums and galleries), for “3 years” substitute “ 4 years ”.
34 (1) Section 77 (assessments: time limits and supplementary assessments) is amended as follows.
(2) In subsection (1)(a) and (b), for “3 years” substitute “ 4 years ”.
(3) For subsection (4) substitute—
(4) In any case falling within subsection (4A), an assessment of a person (“P”), or of an amount payable by P, may be made at any time not more than 20 years after the end of the prescribed accounting period or the importation, acquisition or event giving rise to the penalty, as appropriate (subject to subsection (5)).
(4A) Those cases are—
(a) a case involving a loss of VAT brought about deliberately by P (or by another person acting on P's behalf),
(b) a case in which P has participated in a transaction knowing that it was part of arrangements of any kind (whether or not legally enforceable) intended to bring about a loss of VAT,
(c) a case involving a loss of VAT attributable to a failure by P to comply with a notification obligation, and
(d) a case involving a loss of VAT attributable to a scheme in respect of which P has failed to comply with an obligation under paragraph 6 of Schedule 11A.
(4B) In subsection (4A) the references to a loss of tax brought about deliberately by P or another person include a loss that arises as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by that person.
(4C) In subsection (4A)(c) “notification obligation” means an obligation under—
(a) paragraph 5, 6, 7 or 14(2) or (3) of Schedule 1,
(b) paragraph 3 of Schedule 2,
(c) paragraph 3 or 8(2) of Schedule 3,
(d) paragraph 3, 4 or 7(2) or (3) of Schedule 3A, or
(e) regulations under paragraph 2(4) of Schedule 11.
(4) In subsection (5)—
(a) in paragraph (a), for “3 years” substitute “ 4 years ”, and
(b) omit paragraph (b) and the “and” before it.
35 In section 78(11) (interest in certain cases of official error), for “three years” substitute “ 4 years ”.
36 In section 80(4) (credit for, or repayment of, overstated or overpaid VAT), for “3 years” substitute “ 4 years ”.
FA 1998
37 Schedule 18 to FA 1998 (company tax returns) is amended as follows.
38 In paragraph 36(5) (determination of tax payable if no return delivered), for “five years” substitute “ 3 years ”.
39 In paragraph 37(4) (determination of tax payable if notice complied with in part), for “five years” substitute “ 3 years ”.
40 In paragraph 40(3) (time limit for self-assessment superseding determination), for “five years” substitute “ 3 years ”.
41 (1) Paragraph 43 (fraudulent or negligent conduct) is amended as follows.
(2) For “is attributable to fraudulent or negligent conduct on the part of” substitute “ was brought about carelessly or deliberately by ”.
(3) Accordingly, for the heading before the paragraph substitute “ Loss of tax brought about carelessly or deliberately ”.
42 (1) Paragraph 46 (general time limits for assessments) is amended as follows.
(2) In sub-paragraph (1), for “six years” substitute “ 4 years ”.
(3) For sub-paragraph (2) substitute—
(2) An assessment in a case involving a loss of tax brought about carelessly by the company (or a related person) may be made at any time not more than 6 years after the end of the accounting period to which it relates (subject to sub-paragraph (2A) and to any other provision of the Taxes Acts allowing a longer period).
(2A) An assessment in a case involving a loss of tax—
(a) brought about deliberately by the company (or a related person),
(b) attributable to a failure by the company to comply with an obligation under paragraph 2, or
(c) attributable to arrangements in respect of which the company has failed to comply with an obligation under section 309, 310 or 313 of the Finance Act 2004 (obligation of parties to tax avoidance schemes to provide information to Her Majesty's Revenue and Customs),
may be made at any time not more than 20 years after the end of the accounting period to which it relates (subject to any provision of the Taxes Acts allowing a longer period).
(2B) In this paragraph “related person”, in relation to a company, means—
(a) a person acting on behalf of the company, or
(b) a person who was a partner of the company at the relevant time.
43 In paragraph 51(1)(c) (relief in case of mistake in return), for “six years” substitute “ 4 years ”.
44 (1) Paragraph 53 (time limit for recovery of excessive payments etc) is amended as follows.
(2) In sub-paragraph (1), for “six year” substitute “ 4 year ”.
(3) In sub-paragraph (2), for “paragraph 46(2) (time limit for assessment in case of fraud or negligence)” substitute “ paragraph 46(2) and (2A) (time limit for assessment in case of loss of tax brought about carelessly or deliberately) ”.
45 In paragraph 55 (general time limit for making claims), for “six years” substitute “ 4 years ”.
46 In paragraph 61(2) (consequential claims etc arising out of certain Revenue amendments or assessments), for “fraudulent or negligent conduct on the part of” substitute “ a loss of tax brought about carelessly or deliberately by ”.
47 (1) Paragraph 65 (consequential claims) is amended as follows.
(2) In sub-paragraph (1), for “fraudulent or negligent conduct on the part of” substitute “ a loss of tax brought about carelessly or deliberately by ”.
(3) Accordingly, in the heading before the paragraph, for “fraud or negligence” substitute “ loss of tax brought about carelessly or deliberately ”.
FA 2002
48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEPA 2003
49 In section 711(2) (notice requiring officer of Revenue and Customs to give notice requiring tax return), for “5 years” substitute “ 3 years ”.
ITTOIA 2005
50 ITTOIA 2005 is amended as follows.
51 In section 301(3) (claims for repayment of tax payable in connection with sale with right to reconveyance), for “6 years” substitute “ 4 years ”.
52 In section 302(3) (claims for repayment of tax payable in connection with sale and leaseback transactions), for “6 years” substitute “ 4 years ”.
53 In section 840A(1) (claims for relief for backdated pensions charged on arising basis) (inserted by Schedule 7 to this Act), for “on or before the fifth anniversary of the normal self-assessment filing date for” substitute “ not more than 4 years after the end of ”.
ITA 2007
54 ITA 2007 is amended as follows.
55 In section 40(1)(a) (election for transfer of blind person's allowance), for “on or before the fifth anniversary of the normal self-assessment filing date for” substitute “ not more than 4 years after the end of ”.
56 In section 46(6)(b) (marriages and civil partnerships on or after 5 December 2005: election specifying person entitled to relief), for “on or before the fifth anniversary of the normal self-assessment filing date for” substitute “ not more than 4 years after the end of ”.
57 In section 53(4)(a) (notice in respect of transfer of unused relief), for “on or before the fifth anniversary of the normal self-assessment filing date for” substitute “ not more than 4 years after the end of ”.
58 In section 155 (claim for loss relief against miscellaneous income), in each of subsections (1) and (2), for “on or before the fifth anniversary of the normal self-assessment filing date for” substitute “ not more than 4 years after the end of ”.
59 (1) Section 237 (EIS relief: time limits for assessments) is amended as follows.
(2) In subsection (1)—
(a) omit “not”, and
(b) for “more than” substitute “ at any time not more than ”.
(3) In subsection (3)—
(a) for “36” substitute “ 36(1A) ”, and
(b) for “(fraudulent or negligent conduct)” substitute “ (loss of tax brought about deliberately etc) ”.
60 In section 372 (withdrawal or reduction of community investment tax relief), insert at the end—
(4) An assessment under this paragraph may be made at any time not more than 6 years after the end of the tax year for which the relief was obtained.
(5) Subsection (4) is without prejudice to section 36(1A) of TMA 1970 (loss of tax brought about deliberately etc).
61 In section 668(7) (claim for relief for unremittable transfer proceeds), for “on or before the fifth anniversary of the normal self-assessment filing date for” substitute “ not more than 4 years after the end of ”.
62 In section 669(4) (claim for relief for unremittable transfer proceeds: section 630 profits), for “on or before the fifth anniversary of the normal self-assessment filing date for” substitute “ not more than 4 years after the end of ”.
Consequential amendments
63 In section 178(3) of FA 1993 (stop-loss and quota share insurance)—
(a) in paragraph (a), for “six years” substitute “ 4 years ”, and
(b) in paragraph (b), for “fraudulent or negligent conduct” substitute “ loss of tax brought about carelessly or deliberately ”.
64 In section 225(3)(b) of FA 1994 (stop-loss and quota share insurance), for “fraudulent or negligent conduct” substitute “ loss of tax brought about carelessly or deliberately ”.
65 In consequence of the preceding provisions of this Schedule, omit—
(a) section 149(4)(a)(i) and (ii) of FA 1989,
(b) paragraphs 4 and 6 of Schedule 21 to FA 1996,
(c) section 47(10) of FA 1997,
(d) paragraph 18 of Schedule 19 to FA 1998, and
(e) section 91(6)(b) of FA 2007.
Saving
66 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SCHEDULE 40 Penalties: amendments of Schedule 24 to FA 2007
Section 122
1 Schedule 24 to FA 2007 (penalties for errors) is amended as follows.
2 (1) Paragraph 1 (error in taxpayer's document) is amended as follows.
(2) In sub-paragraph (2)—
(a) for “P's” substitute “ a ”, and
(b) omit “by P”.
(3) In sub-paragraph (3), for “careless or deliberate (within the meaning of paragraph 3)” substitute “ careless (within the meaning of paragraph 3) or deliberate on P's part ”.
(4) In the Table, after the entry relating to income tax and capital gains tax: accounts in connection with a partnership return insert—
Income tax | Return under section 254 of FA 2004.
(5) In the Table, after the entries relating to VAT insert—
Insurance premium tax | Return under regulations under section 54 of FA 1994.
Insurance premium tax | Return, statement or declaration in connection with a claim.
Inheritance tax | Account under section 216 or 217 of IHTA 1984.
Inheritance tax | Information or document under regulations under section 256 of IHTA 1984.
Inheritance tax | Statement or declaration in connection with a deduction, exemption or relief.
Stamp duty land tax | Return under section 76 of FA 2003.
Stamp duty reserve tax | Return under regulations under section 98 of FA 1986.
Petroleum revenue tax | Return under paragraph 2 of Schedule 2 to the Oil Taxation Act 1975.
Petroleum revenue tax | Statement or declaration in connection with a claim under Schedule 5, 6, 7 or 8 to the Oil Taxation Act 1975.
Petroleum revenue tax | Statement under section 1(1)(a) of the Petroleum Revenue Tax Act 1980.
Aggregates levy | Return under regulations under section 25 of FA 2001.
Climate change levy | Return under regulations under paragraph 41 of Schedule 6 to FA 2000.
Landfill tax | Return under regulations under section 49 of FA 1996.
Air passenger duty | Return under section 38 of FA 1994.
Alcoholic liquor duties | Return under regulations under section 13, 49, 56 or 62 of the Alcoholic Liquor Duties Act 1979.
Alcoholic liquor duties | Statement or declaration in connection with a claim for repayment of duty under section 4(4) of FA 1995.
Tobacco products duty | Return under regulations under section 7 of the Tobacco Products Duties Act 1979.
Hydrocarbon oil duties | Return under regulations under section 21 of the Hydrocarbon Oil Duties Act 1979.
Excise duties | Return under regulations under section 93 of CEMA 1979.
Excise duties | Return under regulations under section 100G or 100H of CEMA 1979.
Excise duties | Statement or declaration in connection with a claim.
General betting duty | Return under regulations under paragraph 2 of Schedule 1 to BGDA 1981.
Pool betting duty | Return under regulations under paragraph 2A of Schedule 1 to BGDA 1981.
Bingo duty | Return under regulations under paragraph 9 of Schedule 3 to BGDA 1981.
Lottery duty | Return under regulations under section 28(2) of FA 1993.
Gaming duty | Return under directions under paragraph 10 of Schedule 1 to FA 1997.
Remote gaming duty | Return under regulations under section 26K of BGDA 1981.
(6) In the Table, in the last entry, in column 1, for “Income tax, capital gains tax, corporation tax or VAT” substitute “ Any of the taxes mentioned above ”.
(7) Insert at the end—
(5) In relation to a return under paragraph 2 of Schedule 2 to the Oil Taxation Act 1975, references in this Schedule to P include any person who, after the giving of the return for a taxable field (within the meaning of that Act), becomes the responsible person for the field (within the meaning of that Act).
3 After that paragraph insert—
Error in taxpayer's document attributable to another person
1A (1) A penalty is payable by a person (T) where—
(a) another person (P) gives HMRC a document of a kind listed in the Table in paragraph 1,
(b) the document contains a relevant inaccuracy, and
(c) the inaccuracy was attributable to T deliberately supplying false information to P (whether directly or indirectly), or to T deliberately withholding information from P, with the intention of the document containing the inaccuracy.
(2) A “relevant inaccuracy” is an inaccuracy which amounts to, or leads to—
(a) an understatement of a liability to tax,
(b) a false or inflated statement of a loss, or
(c) a false or inflated claim to repayment of tax.
(3) A penalty is payable under this paragraph in respect of an inaccuracy whether or not P is liable to a penalty under paragraph 1 in respect of the same inaccuracy.
4 (1) Paragraph 2 (under-assessment by HMRC) is amended as follows.
(2) In sub-paragraph (1), for “tax” substitute “ a relevant tax ”.
(3) For sub-paragraph (3) substitute—
(3) In sub-paragraph (1) “relevant tax” means any tax mentioned in the Table in paragraph 1.
5 (1) Paragraph 3 (degrees of culpability) is amended as follows
(2) In sub-paragraph (1)—
(a) for “Inaccuracy in” substitute “ For the purposes of a penalty under paragraph 1, inaccuracy in ”, and
(b) after “is deliberate” (in both places) insert “ on P's part ”.
(3) In sub-paragraph (2), after “deliberate” insert “ on P's part ”.
6 In paragraph 4 (standard amount), after sub-paragraph (1) insert—
(1A) The penalty payable under paragraph 1A is 100% of the potential lost revenue.
7 In paragraph 5(1) (potential lost revenue: normal rule), after “document” insert “ (including an inaccuracy attributable to a supply of false information or withholding of information) ”.
8 (1) Paragraph 6 (potential lost revenue: multiple errors) is amended as follows.
(2) In sub-paragraphs (1) and (2), after “penalty” insert “ under paragraph 1 ”.
(3) In sub-paragraph (5), after “calculating” insert “ for the purposes of a penalty under paragraph 1 ”.
9 (1) Paragraph 9 (reductions for disclosure) is amended as follows.
(2) Before sub-paragraph (1) insert—
(A1) Paragraph 10 provides for reductions in penalties under paragraphs 1, 1A and 2 where a person discloses an inaccuracy, a supply of false information or withholding of information, or a failure to disclose an under-assessment.
(3) In sub-paragraph (1)—
(a) after “an inaccuracy” insert “ , a supply of false information or withholding of information, ”, and
(b) in paragraphs (b) and (c), for “or” substitute “ , the inaccuracy attributable to the supply or false information or withholding of information, or the ”.
(4) In sub-paragraph (2)(a), for “or under-assessment” substitute “ , the supply of false information or withholding of information, or the under-assessment ”.
10 In paragraph 11(1) (special reduction), after “1” insert “ , 1A ”.
11 (1) Paragraph 12 (interaction with other penalties) is amended as follows.
(2) In sub-paragraph (2), for the words after “other penalty” substitute “ incurred by P, or any surcharge for late payment of tax imposed on P, if the amount of the penalty or surcharge is determined by reference to the same tax liability. ”
(3) After sub-paragraph (3) insert—
(4) Where penalties are imposed under paragraphs 1 and 1A in respect of the same inaccuracy, the aggregate of the amounts of the penalties must not exceed 100% of the potential lost revenue.
(4) In the heading before paragraph 12, insert at the end “ and late payment surcharges ”.
12 (1) Paragraph 13 (assessment) is amended as follows.
(2) In sub-paragraph (1)—
(a) for “Where P” substitute “ Where a person ”,
(b) after “1” insert “ , 1A ”, and
(c) for “notify P” substitute “ notify the person ”.
(3) After that sub-paragraph insert—
(1A) A penalty under paragraph 1, 1A or 2 must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued.
(4) In sub-paragraph (3)—
(a) after “1” insert “ or 1A ”,
(b) for “within the” substitute “ before the end of the ”, and
(c) after “no assessment” insert “ to the tax concerned ”.
(5) In sub-paragraph (4), for the words after “made” substitute
before the end of the period of 12 months beginning with—
(a) the end of the appeal period for the assessment of tax which corrected the understatement, or
(b) if there is no assessment within paragraph (a), the date on which the understatement is corrected.
13 In paragraph 15 (right of appeal)—
(a) for “P may” (in each place) substitute “ A person may ”, and
(b) for “by P” (in each place) substitute “ by the person ”.
14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15 In paragraph 18(3) (agency), after “penalty” insert “ under paragraph 1 or 2 ”.
16 (1) Paragraph 19 (companies: officers' liability) is amended as follows.
(2) In sub-paragraph (1), for the words from “of the company” to “as they” substitute “ of the company, the officer is liable to pay such portion of the penalty (which may be 100%) as HMRC ”.
(3) For sub-paragraph (5) substitute—
(5) Where HMRC have specified a portion of a penalty in a notice given to an officer under sub-paragraph (1)—
(a) paragraph 11 applies to the specified portion as to a penalty,
(b) the officer must pay the specified portion before the end of the period of 30 days beginning with the day on which the notice is given,
(c) paragraph 13(2), (3) and (5) apply as if the notice were an assessment of a penalty,
(d) a further notice may be given in respect of a portion of any additional amount assessed in a supplementary assessment in respect of the penalty under paragraph 13(6),
(e) paragraphs 15(1) and (2), 16 and 17(1) to (3) and (6) apply as if HMRC had decided that a penalty of the amount of the specified portion is payable by the officer, and
(f) paragraph 21 applies as if the officer were liable to a penalty.
17 In paragraph 21 (double jeopardy)—
(a) for “P is” substitute “ A person is ”,
(b) after “1” insert “ , 1A ”, and
(c) for “P has” substitute “ the person has ”.
18 In paragraph 22 (interpretation: introduction), for “26” substitute “ 27 ”.
19 After paragraph 23 insert—
23A “Tax”, without more, includes duty.
20 (1) Paragraph 28 (interpretation) is amended as follows.
(2) In paragraph (c) (meaning of “direct tax”), omit “and” after paragraph (ii) and after paragraph (iii) insert
and
(iv) petroleum revenue tax,
.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) In paragraph (f), insert at the end “ against tax or to a payment of a corporation tax credit ”.
(5) After that paragraph insert—
(fa) “corporation tax credit” means—
(i) an R&D tax credit under Schedule 20 to FA 2000,
(ii) a land remediation tax credit or life assurance company tax credit under Schedule 22 to FA 2001,
(iii) a tax credit under Schedule 13 to FA 2002 (vaccine research etc),
(iv) a film tax credit under Schedule 5 to FA 2006, or
(v) a first-year tax credit under Schedule A1 to CAA 2001,
.
21 In consequence of this Schedule the following provisions are omitted—
(a) paragraphs 8 and 9 of Schedule 2 to OTA 1975,
(b) in section 1(3B) of the Petroleum Revenue Tax Act 1980, “, 8 and 9”,
(c) in IHTA 1984—
(i) section 247(1) and (2),
(ii) in section 248, in subsection (1), “account,” and “delivered,” (in both places) and, in subsection (2), “under section 247 above”, and
(iii) section 250(2),
(d) in FA 1994—
(i) section 8, and
(ii) paragraphs 12 and 13 of Schedule 7,
(e) paragraphs 18 to 20 of Schedule 5 to FA 1996,
(f) paragraphs 83ZA(4) and (5), 83F, 83L, 83R and 83X of Schedule 18 to FA 1998,
(g) section 108(2)(a) of FA 1999,
(h) paragraphs 98 to 100 of Schedule 6 to FA 2000,
(i) in Schedule 6 to FA 2001, paragraphs 7 to 9, and in paragraph 9A(5), paragraph (b) and the “or” before it,
(j) section 133(2) to (4) of FA 2002,
(k) in FA 2003—
(i) section 192(8), and
(ii) paragraph 8 of Schedule 10 to FA 2003, and
(l) section 295(4)(a) of FA 2004.
SCHEDULE 41 Penalties: failure to notify and certain VAT and excise wrongdoing
Section 123
Failure to notify etc
1 A penalty is payable by a person (P) where P fails to comply with an obligation specified in the Table below (a “relevant obligation”).
Tax to which obligation relates | Obligation
Income tax and capital gains tax | Obligation under section 7 of TMA 1970 (obligation to give notice of liability to income tax or capital gains tax).
Corporation tax | Obligation under paragraph 2 of Schedule 18 to FA 1998 (obligation to give notice of chargeability to corporation tax).
. . . | . . .
Digital services tax | Obligation under section 54 of FA 2020 (obligation to notify HMRC when threshold conditions for digital services tax are met).
Multinational top-up tax | Obligation of a filing member of a multinational group under Part 3 of Schedule 14 to FA 2023.
Domestic top-up tax | Obligation of a filing member to register under paragraph 6 of Schedule 14 to F(No.2)A 2023, as applied by paragraph 3 of Schedule 18 to F(No.2)A 2023
Value added tax | Obligations under paragraphs 5, 6, 7 and 14(2) and (3) of Schedule 1 to VATA 1994 (obligations to notify liability to register and notify material change in nature of supplies made by person exempted from registration).
Value added tax | Obligations under paragraphs 5, 6 and 13(3) of Schedule 1A to VATA 1994 (obligations to notify liability to register and notify material change in nature of supplies made by person exempted from registration).
. . . | . . .
. . . | . . .
Value added tax | Obligations under paragraphs 3, 4 and 7(2) and (3) of Schedule 3A to VATA 1994 (obligations to notify liability to register and notify relevant change in supplies made by person exempted from registration).
. . . | . . .
Insurance premium tax | Obligations under section 53(1) and (2) of FA 1994 (obligations to register in respect of receipt of premiums in course of taxable business and notify intended receipt of premiums in course of taxable business).
Insurance premium tax | Obligations under section 53AA(1) and (3) of FA 1994 (obligations to register as taxable intermediary and notify intention to charge taxable intermediary's fees).
Plastic packaging tax | Obligation under section 56 of FA 2021 (obligation to give notice of liability to be registered).
Soft drinks industry levy | Obligation under section 44 of FA 2017 (obligation to give notice of liability to be registered).
Aggregates levy | Obligations under section 24(2) of, and paragraph 1 of Schedule 4 to, FA 2001 (obligations to register in respect of carrying out of taxable activities and notify intention of carrying out such activities).
Climate change levy | Obligations under paragraphs 53 and 55 of Schedule 6 to FA 2000 (obligations to register in respect of taxable supplies and notify intention to make, or have made, taxable supply).
Carbon border adjustment mechanism | Obligation of a person under paragraph 2 of Schedule 17 to FA 2026.
Landfill tax | Obligations under section 47(2), (3) and (3A) of FA 1996 (obligations to register in respect of carrying out of taxable activities and notify intention of carrying out such activities).
Air passenger duty | Obligation under section 33(4) or 33A(4) of FA 1994 (obligation to give notice of liability to register to operate chargeable aircraft).
Alcohol duty | Obligations under section 82 of F(No. 2)A 2023 (approval requirement: producers).
Alcohol duty | Obligations under section 91 of F(No. 2)A 2023 (licence to manufacture and deal wholesale in denatured alcohol).
. . . | ...
. . . | . . .
. . . | . . .
Tobacco products duty | Obligation to manufacture tobacco products only on premises registered under regulations under section 7 of TPDA 1979 (management of tobacco products duty).
Vaping products duty | Obligation not to produce vaping products unless approved or registered (in regulations under section 45 of TCTA 2018).
Vaping products duty | Obligation to produce vaping products only on approved or registered premises (in regulations under section 45 of TCTA 2018).
Vaping products duty | Obligation to be approved under section 122 of FA 2026 (approved stamp holders).
Hydrocarbon oil duties | Obligation to make entry of premises intended to be used for production of oil under regulations under section 21 of HODA 1979 (administration and enforcement).
Excise duties | Obligation to receive, deposit or hold duty suspended excise goods only in premises approved under regulations under section 92 of CEMA 1979 (approval of warehouses).
Excise duties | Obligation to receive duty suspended excise goods only if approved or registered (or approved and registered) as a Registered Consignee under regulations under section 100G or 100H of CEMA 1979 (registered excise dealers and shippers etc).
Excise duties | Obligation to receive, deposit or hold duty suspended excise goods only if approved or registered (or approved and registered) as a registered owner, a duty representative, a registered mobile operator or a fiscal representative of a registered mobile operator or an authorised warehousekeeper under regulations under section 100G or 100H of CEMA 1979 (registered excise dealers and shippers etc).
Excise duties | Obligation to dispatch excise goods under duty suspension arrangements upon a declaration for the free-circulation procedure or an authorised use procedure being accepted in accordance with Part 1 of the Taxation (Cross-border Trade) Act 2018 only if approved and registered (or approved and registered) as a Registered Consignor under regulations under section 100G or 100H of CEMA 1979 (registered excise dealers and shippers etc).
General betting duty | Obligation to register under section 164(2) of FA 2014 (registration of persons liable etc for general betting duty).
Pool betting duty | Obligation to register under section 164(2) of FA 2014 (registration of persons liable etc for pool betting duty).
. . . | . . .
Lottery duty | Obligation under section 29(1) of FA 1993 (obligation to register in respect of promotion of lotteries).
Gaming duty | Obligations under paragraphs 3 and 6 of Schedule 1 to FA 1997 (obligations to register in respect of gaming and to notify premises).
Remote gaming duty | Obligation to register under section 164(2) of FA 2014 (registration of persons liable etc for remote gaming duty).
Machine games duty | Obligation under paragraph 20(3) of Schedule 24 to FA 2012 (obligation to register in respect of premises).
. . . | . . .
Issue of invoice showing VAT by unauthorised person
2 (1) A penalty is payable by a person (P) where P makes an unauthorised issue of an invoice showing VAT.
(2) P makes an unauthorised issue of an invoice showing VAT if P—
(a) is an unauthorised person, and
(b) issues an invoice showing an amount as being value added tax or as including an amount attributable to value added tax.
(3) In sub-paragraph (2)(a) “an unauthorised person” means anyone other than—
(a) a person registered under VATA 1994,
(b) a body corporate treated for the purposes of section 43 of that Act as a member of a group,
(c) a person treated as a taxable person under regulations under section 46(4) of that Act,
(d) a person authorised to issue an invoice under regulations under paragraph 2(12) of Schedule 11 to that Act, or
(e) a person acting on behalf of the Crown.
(4) This paragraph has effect in relation to any invoice which—
(a) for the purposes of any provision made under subsection (3) of section 54 of VATA 1994 shows an amount as included in the consideration for any supply, and
(b) either fails to comply with the requirements of any regulations under that section or is issued by a person who is not for the time being authorised to do so for the purposes of that section,
as if the person issuing the invoice were an unauthorised person and that amount were shown on the invoice as an amount attributable to value added tax.
Putting product to use that attracts higher duty
3 (1) A penalty is payable by a person (“P”) where P does an act which enables HMRC to assess an amount as duty due from P under any of the provisions in the Table below (a “relevant excise provision”).
Provision under which assessment may be made | Subject-matter of provision
Part 2 of F(No. 2)A 2023 (alcohol duty), section 53(2) | Unauthorised repackaging of qualifying draught products.
Part 2 of F(No. 2)A 2023 (alcohol duty), section 78(8) | Spirits: authorised use for certain purposes.
Part 2 of F(No. 2)A 2023 (alcohol duty), section 79(2) | Spirits: imported goods not for human consumption.
HODA 1979 section 10(3) | Duty-free oil.
HODA 1979 section 13(1A) | Rebated heavy oil.
HODA 1979 section 13AB(1)(a) or (2)(a) | Kerosene.
HODA 1979 section 13AD(2) | Kerosene.
HODA 1979 section 13ZB(1) | Heating oil etc.
HODA 1979 section 14(4) | Light oil for use as furnace oil.
HODA 1979 section 14D(1) | Rebated biodiesel or bioblend.
HODA 1979 section 14F(2) HODA 1979 section 14F(8) | Rebated heavy oil or bioblend. Rebated heavy oil, biodiesel or bioblend
HODA 1979 section 20AAD(5) | Mixtures containing aqua methanol.
HODA 1979 section 23(1B) | Road fuel gas on which no duty paid.
HODA 1979 section 24(4A) | Duty-free and rebated oil.
(2) A penalty is payable by a person (“P”) where P supplies a product knowing that it will be used in a way which enables HMRC to assess an amount as duty due from another person under a relevant excise provision.
Involvement in landfill disposal by unregistered person
3A A penalty is payable by a person (“P”) where P does an act which enables HMRC to assess an amount as landfill tax due from P under section 50A of FA 1996.
Handling goods subject to unpaid excise duty etc
4 (1) A penalty is payable by a person (P) where—
(a) after the excise duty point for any goods which are chargeable with a duty of excise, P acquires possession of the goods or is concerned in carrying, removing, depositing, keeping or otherwise dealing with the goods, and
(b) at the time when P acquires possession of the goods or is so concerned, a payment of duty on the goods is outstanding and has not been deferred.
(1A) A penalty is payable by a person (P) where—
(a) after a charge to soft drinks industry levy has arisen in respect of chargeable soft drinks, P acquires possession of them or is concerned with carrying, removing, depositing, keeping or otherwise dealing with them, and
(b) at the time when P acquires possession of the chargeable soft drinks or is so concerned, a payment of soft drinks industry levy in respect of the chargeable soft drinks is due or payable and has not been paid.
(2) In this paragraph—
“excise duty point” has the meaning given by section 1 of F(No.2)A 1992 (and includes any excise duty point created or deemed to be created as a result of provision in regulations under section 45 of the Taxation (Cross-border Trade) Act 2018 (general regulation making power for excise duty purposes etc)), and
“goods” has the meaning given by section 1(1) of CEMA 1979.
“chargeable soft drinks” has the same meaning as in Part 2 of FA 2017.
Degrees of culpability
5 (1) A failure by P to comply with a relevant obligation is—
(a) “deliberate and concealed” if the failure is deliberate and P makes arrangements to conceal the situation giving rise to the obligation, and
(b) “deliberate but not concealed” if the failure is deliberate but P does not make arrangements to conceal the situation giving rise to the obligation.
(2) The making by P of an unauthorised issue of an invoice showing VAT is—
(a) “deliberate and concealed” if it is done deliberately and P makes arrangements to conceal it, and
(b) “deliberate but not concealed” if it is done deliberately but P does not make arrangements to conceal it.
(3) The doing by P of an act which enables HMRC to assess an amount of duty as due from P under a relevant excise provision , or to assess an amount of landfill tax as due from P under section 50A of FA 1996, is—
(a) “deliberate and concealed” if it is done deliberately and P makes arrangements to conceal it, and
(b) “deliberate but not concealed” if it is done deliberately but P does not make arrangements to conceal it.
(4) P's acquiring possession of, or being concerned in dealing with, goods on which a payment of duty is outstanding and has not been deferred or (as the case may be) chargeable soft drinks in respect of which a payment of soft drinks industry levy is due and payable and has not been paid is—
(a) “deliberate and concealed” if it is done deliberately and P makes arrangements to conceal it, and
(b) “deliberate but not concealed” if it is done deliberately but P does not make arrangements to conceal it.
Amount of penalty: standard amount
6 (1) This paragraph sets out the penalty payable under paragraph 1.
(2) If the failure is in category 1, the penalty is—
(a) for a deliberate and concealed failure, 100% of the potential lost revenue,
(b) for a deliberate but not concealed failure, 70% of the potential lost revenue, and
(c) for any other case, 30% of the potential lost revenue.
(3) If the failure is in category 2, the penalty is—
(a) for a deliberate and concealed failure, 150% of the potential lost revenue,
(b) for a deliberate but not concealed failure, 105% of the potential lost revenue, and
(c) for any other case, 45% of the potential lost revenue.
(4) If the failure is in category 3, the penalty is—
(a) for a deliberate and concealed failure, 200% of the potential lost revenue,
(b) for a deliberate but not concealed failure, 140% of the potential lost revenue, and
(c) for any other case, 60% of the potential lost revenue.
(5) Paragraph 6A explains the 3 categories of failure.
6A (1) A failure is in category 1 if—
(a) it involves a domestic matter, or
(b) it involves an offshore matter and—
(i) the territory in question is a category 1 territory, or
(ii) the tax at stake is a tax other than income tax or capital gains tax.
(2) A failure is in category 2 if—
(a) it involves an offshore matter or an offshore transfer,
(b) the territory in question is a category 2 territory, and
(c) the tax at stake is income tax or capital gains tax.
(3) A failure is in category 3 if—
(a) it involves an offshore matter or an offshore transfer,
(b) the territory in question is a category 3 territory, and
(c) the tax at stake is income tax or capital gains tax.
(4) A failure “involves an offshore matter” if it results in a potential loss of revenue that is charged on or by reference to—
(a) income arising from a source in a territory outside the UK,
(b) assets situated or held in a territory outside the UK,
(c) activities carried on wholly or mainly in a territory outside the UK, or
(d) anything having effect as if it were income, assets or activities of a kind described above.
(4A) A failure “involves an offshore transfer” if—
(a) it does not involve an offshore matter,
(b) it is deliberate (whether or not concealed) and results in a potential loss of revenue,
(c) the tax at stake is income tax or capital gains tax, and
(d) the applicable condition in paragraph 6AA is satisfied.
(5) A failure “involves a domestic matter” if it results in a potential loss of revenue and does not involve either an offshore matter or an offshore transfer.
(6) If a single failure is in more than one category (each referred to as a “relevant category”)—
(a) it is to be treated for the purposes of this Schedule as if it were separate failures, one in each relevant category according to the matters or transfers that it involves, and
(b) the potential lost revenue in respect of each separate failure is taken to be such share of the potential lost revenue in respect of the single failure (see paragraphs 7 and 11) as is just and reasonable.
(7) For the purposes of this Schedule—
(a) paragraph 21A of Schedule 24 to FA 2007 (classification of territories) has effect, but
(b) an order under that paragraph does not apply to relevant obligations that are to be complied with by a date before the date on which the order comes into force.
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) In this paragraph and paragraph 6AA—
“assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling;
“UK” means the United Kingdom, including the territorial sea of the United Kingdom.
6AA (1) This paragraph makes provision in relation to offshore transfers.
(2) Where the tax at stake is income tax, the applicable condition is satisfied if the income on or by reference to which the tax is charged, or any part of the income—
(a) is received in a territory outside the UK, or
(b) is transferred before the calculation date to a territory outside the UK.
(3) Where the tax at stake is capital gains tax, the applicable condition is satisfied if the proceeds of the disposal on or by reference to which the tax is charged, or any part of the proceeds—
(a) are received in a territory outside the UK, or
(b) are transferred before the calculation date to a territory outside the UK.
(4) In the case of a transfer falling within sub-paragraph (2)(b) or (3)(b), references to the income or proceeds transferred are to be read as including references to any assets derived from or representing the income or proceeds.
(5) In relation to an offshore transfer, the territory in question for the purposes of paragraph 6A is the highest category of territory by virtue of which the failure involves an offshore transfer.
(6) In this paragraph “calculation date” means the date by reference to which the potential lost revenue is to be calculated (see paragraph 7).
6AB Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets etc) apply for the purposes of paragraphs 6A and 6AA of this Schedule as they apply for the purposes of paragraphs 4A and 4AA of that Schedule.
6B The penalty payable under any of paragraphs 2, 3(1) and 4 is—
(a) for a deliberate and concealed act or failure, 100% of the potential lost revenue,
(b) for a deliberate but not concealed act or failure, 70% of the potential lost revenue, and
(c) for any other case, 30% of the potential lost revenue.
6C The penalty payable under paragraph 3(2) is 100% of the potential lost revenue.
6CA (1) The penalty payable under paragraph 3A is—
(a) for a deliberate and concealed act or failure, 100% of the potential lost revenue, and
(b) for a deliberate but not concealed act or failure, 70% of the potential lost revenue.
(2) No penalty is payable under paragraph 3A in any other case.
6D Paragraphs 7 to 11 define “potential lost revenue”.
Potential lost revenue
7 (1) “The potential lost revenue” in respect of a failure to comply with a relevant obligation is as follows.
(1A) In the case of an obligation under section 7 of TMA 1970 which arises by virtue of subsection (1B) of that section, the potential lost revenue is so much of any income tax or capital gains tax to which P is liable in respect of the tax year in question as is, by reason of the failure to comply with the obligation—
(a) where the period specified in subsection (1C)(b)(ii) of that section applies and ends after the relevant date, unpaid at the end of that period, or
(b) in any other case, unpaid on the relevant date.
(1B) For the purposes of sub-paragraph (1A) the relevant date is—
(a) 31 January following the tax year, or
(b) if, after that date, HMRC refund a payment on account in respect of the tax year to P, the day after the refund is issued.
(2) In the case of a relevant obligation relating to income tax or capital gains tax and a tax year (not falling within sub-paragraph (1A)), the potential lost revenue is so much of any income tax or capital gains tax to which P is liable in respect of the tax year as by reason of the failure is unpaid on 31 January following the tax year.
(3) In the case of a relevant obligation relating to corporation tax and an accounting period, the potential lost revenue is (subject to sub-paragraph (4)) so much of any corporation tax to which P is liable in respect of the accounting period as by reason of the failure is unpaid 12 months after the end of the accounting period.
(4) In computing the amount of that tax no account shall be taken of any relief under section 458 of CTA 2010 (relief in respect of repayment etc of loan) which is deferred under subsection (5) of that section.
(4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4B) In the case of a relevant obligation relating to digital services tax and an accounting period, the potential lost revenue is so much of any digital services tax payable by members of the group for the accounting period as by reason of the failure is unpaid 12 months after the end of the accounting period.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) In the case of a relevant obligation relating to value added tax, the potential lost revenue is the amount of the value added tax (if any) for which P is, or but for any exemption from registration would be, liable for the relevant period (see sub-paragraph (7)) ....
(7) “The relevant period” is—
(a) in relation to a failure to comply with paragraph 14(2) or (3) of Schedule 1 to VATA 1994 ... or paragraph 7(2) or (3) of Schedule 3A to that Act, the period beginning on the date of the change or alteration concerned and ending on the date on which HMRC received notification of, or otherwise became fully aware of, that change or alteration, and
(b) in relation to a failure to comply with an obligation under any other provision, the period beginning on the date with effect from which P is required in accordance with that provision to be registered and ending on the date on which HMRC received notification of, or otherwise became fully aware of, P's liability to be registered.
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8A) In the case of a relevant obligation under section 47 of FA 1996 (which relates to landfill tax), the potential lost revenue is the amount of tax (if any) for which P is liable for the period—
(a) beginning with the date with effect from which P is required in accordance with that section to be registered or (as the case may be) from which the Commissioners may register P under that section, and
(b) ending with the day on which HMRC received notification of, or otherwise became fully aware of, P's liability to be registered or (as the case may be) the Commissioners' power to register P.
(9) In the case of a relevant obligation under any provision relating to insurance premium tax, plastic packaging tax, aggregates levy, climate change levy ... or air passenger duty, the potential lost revenue is the amount of the tax (if any) for which P is liable for the period—
(a) beginning on the date with effect from which P is required in accordance with that provision to be registered, and
(b) ending on the date on which HMRC received notification of, or otherwise became fully aware of, P's liability to be registered.
(10) In the case of a relevant obligation under paragraph 2 of Schedule 17 to FA 2026 (which relates to the carbon border adjustment mechanism), the potential lost revenue is the amount of the tax (if any) for which P is liable for the period—
(a) beginning with the end of the period specified in paragraph 2(4) of Schedule 17 of FA 2026, and
(b) ending with the day on which P registers under paragraph 2 of Schedule 17 to FA 2026 or HMRC otherwise becomes fully aware of P’s obligation to register.
(10) In the case of a failure to comply with a relevant obligation relating to any other tax, the potential lost revenue is the amount of any tax which is unpaid by reason of the failure.
8 In the case of the making of an unauthorised issue of an invoice showing VAT, the potential lost revenue is the amount shown on the invoice as value added tax or the amount to be taken as representing value added tax.
9 In the case of—
(a) the doing of an act which enables HMRC to assess an amount of duty as due under a relevant excise provision, or
(b) supplying a product knowing that it will be used in a way which enables HMRC to assess an amount as duty due from another person under a relevant excise provision,
the potential lost revenue is the amount of the duty which may be assessed as due.
9A In the case of the doing of an act which enables HMRC to assess an amount of landfill tax as due under section 50A of FA 1996, the potential lost revenue is the amount of the tax which may be assessed as due.
10 In the case of acquiring possession of, or being concerned in dealing with, goods the payment of duty on which is outstanding and has not been deferred or (as the case may be) chargeable soft drinks in respect of which a payment of soft drinks industry levy is due and payable and has not been paid, the potential lost revenue is an amount equal to the amount of duty due on the goods.
11 (1) In calculating potential lost revenue in respect of a relevant act or failure on the part of P no account is to be taken of the fact that a potential loss of revenue from P is or may be balanced by a potential over-payment by another person (except to the extent that an enactment requires or permits a person's tax liability to be adjusted by reference to P's).
(2) In this Schedule “a relevant act or failure” means—
(a) a failure to comply with a relevant obligation,
(b) the making of an unauthorised issue of an invoice showing VAT,
(c) the doing of an act which enables HMRC to assess an amount of duty as due under a relevant excise provision or supplying a product knowing that it will be used in a way which enables HMRC to assess an amount as duty due from another person under a relevant excise provision, or
(d) acquiring possession of, or being concerned in dealing with, goods the payment of duty on which is outstanding and has not been deferred or (as the case may be) chargeable soft drinks in respect of which a payment of soft drinks industry levy is due and payable and has not been paid.
Reductions for disclosure
12 (1) Paragraph 13 provides for reductions in penalties—
(a) under paragraph 1 where P discloses a relevant failure that involves a domestic matter, and
(b) under paragraphs 2 to 4 where P discloses a relevant act or failure.
(1A) Paragraph 13A provides for reductions in penalties under paragraph 1 where P discloses a relevant failure that involves an offshore matter or an offshore transfer.
(1B) Sub-paragraph (2) applies where P discloses—
(a) a relevant failure that involves a domestic matter,
(b) a non-deliberate relevant failure that involves an offshore matter, or
(c) a relevant act or failure giving rise to a penalty under any of paragraphs 2 to 4.
(2) P discloses the relevant act or failure by—
(a) telling HMRC about it,
(b) giving HMRC reasonable help in quantifying the tax unpaid by reason of it, and
(c) allowing HMRC access to records for the purpose of checking how much tax is so unpaid.
(2A) Sub-paragraph (2B) applies where P discloses—
(a) a deliberate relevant failure (whether concealed or not) that involves an offshore matter, or
(b) a relevant failure that involves an offshore transfer.
(2B) P discloses the failure by—
(a) telling HMRC about it,
(b) giving HMRC reasonable help in quantifying the tax unpaid by reason of it,
(c) allowing HMRC access to records for the purpose of checking how much tax is so unpaid, and
(d) providing HMRC with additional information.
(2C) The Treasury must make regulations setting out what is meant by “additional information” for the purposes of sub-paragraph (2B)(d).
(2D) Regulations under sub-paragraph (2C) are to be made by statutory instrument.
(2E) An instrument containing regulations under sub-paragraph (2C) is subject to annulment in pursuance of a resolution of the House of Commons.
(3) Disclosure of a relevant act or failure—
(a) is “unprompted” if made at a time when the person making it has no reason to believe that HMRC have discovered or are about to discover the relevant act or failure, and
(b) otherwise, is “prompted”.
(4) In relation to disclosure “quality” includes timing, nature and extent.
(5) Paragraph 6A(4) to (5) applies to determine whether a failure involves an offshore matter, an offshore transfer or a domestic matter for the purposes of this paragraph.
(6) In this paragraph “relevant failure” means a failure to comply with a relevant obligation.
13 (1) If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.
(2) But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—
(a) for a prompted disclosure, in column 2 of the Table, and
(b) for an unprompted disclosure, in column 3 of the Table.
(3) Where the Table shows a different minimum for case A and case B—
(a) the case A minimum applies if—
(i) the penalty is one under paragraph 1, and
(ii) HMRC become aware of the failure less than 12 months after the time when the tax first becomes unpaid by reason of the failure, and
(b) otherwise, the case B minimum applies.
Standard % | Minimum % for prompted disclosure | Minimum % for unprompted disclosure
30% | case A: 10% case B: 20% | case A: 0% case B: 10%
70% | 35% | 20%
100% | 50% | 30%
13A (1) If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.
(2) But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—
(a) for a prompted disclosure, in column 2 of the Table, and
(b) for an unprompted disclosure, in column 3 of the Table.
(3) Where the Table shows a different minimum for case A and case B—
(a) the case A minimum applies if HMRC becomes aware of the failure less than 12 months after the time when the tax first becomes unpaid by reason of the failure;
(b) otherwise, the case B minimum applies.
Standard % | Minimum % for prompted disclosure | Minimum % for unprompted disclosure
30% | case A: 10% case B: 20% | case A: 0% case B: 10%
37.5% | case A: 12.5% case B: 25% | case A: 0% case B: 12.5%
45% | case A: 15% case B: 30% | case A: 0% case B:15%
60% | case A: 20% case B: 40% | case A: 0% case B: 20%
70% | 45% | 30%
87.5% | 53.75% | 35%
100% | 60% | 40%
105% | 62.5% | 40%
125% | 72.5% | 50%
140% | 80% | 50%
150% | 85% | 55%
200% | 110% | 70%
Special reduction
14 (1) If HMRC think it right because of special circumstances, they may reduce a penalty under any of paragraphs 1 to 4.
(2) In sub-paragraph (1) “special circumstances” does not include—
(a) ability to pay, or
(b) the fact that a potential loss of revenue from one taxpayer is balanced by a potential over-payment by another.
(3) In sub-paragraph (1) the reference to reducing a penalty includes a reference to—
(a) staying a penalty, and
(b) agreeing a compromise in relation to proceedings for a penalty.
Interaction with other penalties and late payment surcharges
15 (1) The amount of a penalty for which P is liable under any of paragraphs 1 to 4 shall be reduced by the amount of any other penalty incurred by P, or any surcharge for late payment of tax imposed on P, if the amount of the penalty or surcharge is determined by reference to the same tax liability.
(1A) In sub-paragraph (1) “any other penalty” does not include a penalty under Part 4 of FA 2014 (penalty where corrective action not taken after follower notice etc) or Schedule 22 to FA 2016 (asset-based penalty).
(2) If P is liable to a penalty under section 9 of FA 1994 in respect of a failure to comply with a relevant obligation, the amount of any penalty payable under paragraph 1 in respect of the failure is to be reduced by the amount of the penalty under that section.
(2A) If P has incurred a penalty under regulations under section 8JA(1) of TPDA 1979 (tracing and security regulations) in respect of conduct for which P is liable to a penalty under paragraph 4(1), the amount of the penalty under paragraph 4(1) is to be reduced by the amount of the penalty under those regulations.
(3) Where penalties are imposed under paragraph 3(1) and (2) in respect of the same act or use, the aggregate of the amounts of the penalties must not exceed 100% of the potential lost revenue.
Assessment
16 (1) Where P becomes liable for a penalty under any of paragraphs 1 to 4 HMRC shall—
(a) assess the penalty,
(b) notify P, and
(c) state in the notice the period in respect of which the penalty is assessed.
(2) A penalty under any of paragraphs 1 to 4 must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued.
(3) An assessment—
(a) shall be treated for procedural purposes in the same way as an assessment to tax (except in respect of a matter expressly provided for by this Act),
(b) may be enforced as if it were an assessment to tax, and
(c) may be combined with an assessment to tax.
(4) An assessment of a penalty under any of paragraphs 1 to 4 must be made before the end of the period of 12 months beginning with—
(a) the end of the appeal period for the assessment of tax unpaid by reason of the relevant act or failure in respect of which the penalty is imposed, or
(b) if there is no such assessment, the date on which the amount of tax unpaid by reason of the relevant act or failure is ascertained.
(5) In sub-paragraph (4)(a) “appeal period” means the period during which—
(a) an appeal could be brought, or
(b) an appeal that has been brought has not been determined or withdrawn.
(6) Subject to sub-paragraph (4), a supplementary assessment may be made in respect of a penalty if an earlier assessment operated by reference to an underestimate of potential lost revenue.
(7) The references in this paragraph to “an assessment to tax” are, in relation to a penalty under paragraph 2, a demand for recovery.
Appeal
17 (1) P may appeal against a decision of HMRC that a penalty is payable by P.
(2) P may appeal against a decision of HMRC as to the amount of a penalty payable by P.
18 (1) An appeal shall be treated in the same way as an appeal against an assessment to the tax concerned (including by the application of any provision about bringing the appeal by notice to HMRC, about HMRC review of the decision or about determination of the appeal by the First-tier Tribunal or the Upper Tribunal).
(2) Sub-paragraph (1) does not apply—
(a) so as to require P to pay a penalty before an appeal against the assessment of the penalty is determined, or
(b) in respect of any other matter expressly provided for by this Act.
19 (1) On an appeal under paragraph 17(1) the tribunal may affirm or cancel HMRC's decision.
(2) On an appeal under paragraph 17(2) the tribunal may—
(a) affirm HMRC's decision, or
(b) substitute for HMRC's decision another decision that HMRC had power to make.
(3) If the tribunal substitutes its decision for HMRC's, the tribunal may rely on paragraph 14—
(a) to the same extent as HMRC (which may mean applying the same percentage reduction as HMRC to a different starting point), or
(b) to a different extent, but only if the tribunal thinks that HMRC's decision in respect of the application of paragraph 14 was flawed.
(4) In sub-paragraph (3)(b) “flawed” means flawed when considered in the light of the principles applicable in proceedings for judicial review.
(5) In this paragraph, “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 18(1)).
Reasonable excuse
20 (1) Liability to a penalty under any of paragraphs 1, 2, 3(1) and 4 does not arise in relation to an act or failure which is not deliberate if P satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that there is a reasonable excuse for the act or failure.
(2) For the purposes of sub-paragraph (1)—
(a) an insufficiency of funds is not a reasonable excuse unless attributable to events outside P's control,
(b) where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the relevant act or failure, and
(c) where P had a reasonable excuse for the relevant act or failure but the excuse has ceased, P is to be treated as having continued to have the excuse if the relevant act or failure is remedied without unreasonable delay after the excuse ceased.
Agency
21 (1) In paragraph 1 the reference to a failure by P includes a failure by a person who acts on P's behalf; but P is not liable to a penalty in respect of any failure by P's agent where P satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that P took reasonable care to avoid the failure.
(2) In paragraph 2 the reference to the making by P of an unauthorised issue of an invoice showing VAT includes the making of such an unauthorised issue by a person who acts on P's behalf; but P is not liable to a penalty in respect of any action by P's agent where P satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that P took reasonable care to avoid it.
(3) In paragraph 3(1) the reference to the doing by P of an act which enables HMRC to assess an amount as duty due from P under a relevant excise provision includes the doing of such an act by a person who acts on P's behalf; but P is not liable to a penalty in respect of any action by P's agent where P satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that P took reasonable care to avoid it.
(4) In paragraph 4(1) the reference to P acquiring possession of, or being concerned in dealing with, goods the payment of duty on which is outstanding and has not been deferred includes a person who acts on P's behalf doing so; but P is not liable to a penalty in respect of any action by P's agent where P satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that P took reasonable care to avoid it.
(5) In paragraph 4(1A) the reference to P acquiring possession of, or being concerned in dealing with, chargeable soft drinks in respect of which a payment of soft drinks industry levy is payable but has not been paid includes a person who acts on P's behalf in doing so; but P is not liable to a penalty in respect of any action by P's agent where P satisfies HMRC or (on appeal) the First-tier Tribunal that P took reasonable care to avoid it.
Companies: officers' liability
22 (1) Where a penalty under any of paragraphs 1, 2, 3(1) and 4 is payable by a company for a deliberate act or failure which was attributable to an officer of the company, the officer is liable to pay such portion of the penalty (which may be 100%) as HMRC may specify by written notice to the officer.
(2) Sub-paragraph (1) does not allow HMRC to recover more than 100% of a penalty.
(3) In the application of sub-paragraph (1) to a body corporate other than a limited liability partnership “officer” means—
(a) a director (including a shadow director within the meaning of section 251 of the Companies Act 2006 (c. 46)), ...
(aa) a manager, and
(b) a secretary.
(3A) In the application of sub-paragraph (1) to a limited liability partnership, “officer” means a member.
(4) In the application of sub-paragraph (1) in any other case “officer” means—
(a) a director,
(b) a manager,
(c) a secretary, and
(d) any other person managing or purporting to manage any of the company's affairs.
(5) Where HMRC have specified a portion of a penalty in a notice given to an officer under sub-paragraph (1)—
(a) paragraph 14 applies to the specified portion as to a penalty,
(b) the officer must pay the specified portion before the end of the period of 30 days beginning with the day on which the notice is given,
(c) paragraph 16(3) to (5) and (7) apply as if the notice were an assessment of a penalty,
(d) a further notice may be given in respect of a portion of any additional amount assessed in a supplementary assessment in respect of the penalty under paragraph 16(6),
(e) paragraphs 17 to 19 apply as if HMRC had decided that a penalty of the amount of the specified portion is payable by the officer, and
(f) paragraph 23 applies as if the officer were liable to a penalty.
(6) In this paragraph “company” means any body corporate or unincorporated association, but does not include a partnership, a local authority or a local authority association.
Double jeopardy
23 P is not liable to a penalty under any of paragraphs 1 to 4 in respect of a failure or action in respect of which P has been convicted of an offence.
Interpretation
24 (1) This paragraph applies for the construction of this Schedule
(2) “HMRC” means Her Majesty's Revenue and Customs.
(3) “Tax”, without more, includes duty.
(4) An expression used in relation to value added tax has the same meaning as in VATA 1994.
Consequential repeals
25 In consequence of this Schedule the following provisions are omitted—
(a) in TMA 1970—
(i) section 7(8), and
(ii) in the table in section 98, in the second column, the entry relating to section 55 of FA 2004,
(b) section 170A of CEMA 1979,
(c) in ALDA 1979—
(i) in section 47(5), “which shall be calculated by reference to the amount of duty charged on the beer produced”,
(ii) in section 54(5), “which shall be calculated by reference to the amount of duty charged on the wine produced”,
(iii) in section 55(6), “which shall be calculated by reference to the amount of duty charged on the made-wine produced”, and
(iv) in section 62(4), “which shall be calculated by reference to the amount of duty charged on the cider made”,
(d) in HODA 1979—
(i) section 13AD(4)(a) and (b), and
(ii) section 14F(4)(a) and (b),
(e) in FA 1994—
(i) section 33(6),
(ii) paragraph 13 of Schedule 4, and
(iii) paragraph 14 of Schedule 7,
(f) section 67 of VATA 1994,
(g) section 32 of FA 1995,
(h) in FA 1996—
(i) section 37, and
(ii) paragraph 21(1), (2) and (4) of Schedule 5,
(i) section 27(11) of FA 1997,
(j) paragraph 2(3) and (4) of Schedule 18 to FA 1998,
(k) in FA 2000—
(i) section 136(2), and
(ii) paragraph 55(2) to (6) of Schedule 6, and
(l) paragraph 1(2) to (6) of Schedule 4 to FA 2001.
SCHEDULE 42 Alcoholic liquor duties: decisions subject to review and appeal
Section 125
1 Schedule 5 to FA 1994 (customs and excise decisions subject to review and appeal) is amended as follows.
2 (1) Sub-paragraph (1) of paragraph 3 (decisions under or for the purposes of ALDA 1979) is amended as follows.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) After paragraph (k) insert—
(ka) any decision by the Commissioners as to whether or not to remit or repay duty under section 46 of the Alcoholic Liquor Duties Act 1979 (remission or repayment of duty on spoilt beer) or the amount of duty to be so remitted or repaid;
.
(4) After paragraph (m) insert—
(ma) any decision by the Commissioners as to whether or not to remit or repay duty under section 61 of the Alcoholic Liquor Duties Act 1979 (remission or repayment of duty on spoilt wine or made-wine) or the amount of duty to be so remitted or repaid;
(mb) any decision by the Commissioners as to whether or not to remit or repay duty under section 64 of the Alcoholic Liquor Duties Act 1979 (remission or repayment of duty on spoilt cider) or the amount of duty to be so remitted or repaid;
.
3 (1) Sub-paragraph (2) of paragraph 3 (decisions under regulations under section 13 or 77 of ALDA 1979) is amended as follows.
(2) After “a decision” insert
—
(a)
.
(3) Insert at the end
; or
(b) as to whether or not a person is to be required to give security for the fulfilment of an obligation or as to the form or amount of, or the conditions of, any such security.
4 After sub-paragraph (2) of paragraph 3 insert—
(2A) Any decision which is made under or for the purposes of any regulations under section 15 of the Alcoholic Liquor Duties Act 1979 (distillers' warehouses) and is a decision as to whether or not a person is to be required to give security for the fulfilment of an obligation or as to the form or amount of, or the conditions of, any such security.
(2B) Any decision which is made under or for the purposes of section 41A or 47, or any regulations under section 49, of the Alcoholic Liquor Duties Act 1979 (regulation of the making of beer) and is a decision—
(a) as to whether or not to register a person or premises under section 41A or 47;
(b) as to the conditions subject to which a person is, or premises are, so registered;
(c) as to the revocation of such a registration;
(d) as to whether or not a person is to be required to give security for the fulfilment of an obligation or as to the form or amount of, or the conditions of, any such security; or
(e) as to whether or not to restrict or prohibit the movement of beer from one place to another without payment of duty.
5 (1) Sub-paragraph (3) of paragraph 3 (decisions under section 55, and regulations under section 56, of ALDA 1979) is amended as follows.
(2) For “section 55” substitute “ section 54 or 55 ”.
(3) After “a decision” insert
—
(a)
.
(4) For “that section” substitute “ section 54 or 55 ”.
(5) Insert at the end—
(b) as to whether or not a person is to be required to give security for the fulfilment of an obligation or as to the form or amount of, or the conditions of, any such security; or
(c) as to the conditions subject to which, or the purposes for which, wine or made-wine may be moved from one place to another without payment of duty.
6 After sub-paragraph (3) of paragraph 3 insert—
(3A) Any decision which is made under or for the purposes of section 62 of the Alcoholic Liquor Duties Act 1979 (regulation of the making of cider), or any regulations under that section, and is a decision—
(a) as to whether or not to register, or to cancel the registration of, a maker of cider;
(b) as to whether or not a person is to be required to give security for the fulfilment of an obligation or as to the form or amount of, or the conditions of, any such security; or
(c) as to the conditions subject to which, or the purposes for which, cider may be moved from one place to another without payment of duty.
7 After paragraph 9 insert—
The Finance Act 1995
9ZA Any decision by the Commissioners—
(a) on a claim under section 4 of the Finance Act 1995 for repayment of duty (alcoholic ingredients relief); or
(b) as to whether or not to remit duty under that section.
SCHEDULE 43 Taking control of goods etc: consequential provision
Section 129
Part 1 Consequential provision: taking control of goods
TMA 1970
1 (1) Section 61 of TMA 1970 (distraint by collection) is amended as follows.
(2) In subsection (1), omit the words from “(a) in England and Wales” to “in Northern Ireland,”.
(3) Omit subsection (1A).
(4) Insert at the end—
(7) This section extends only to Northern Ireland.
Social Security Administration Act 1992 (c. 5)
2 In the Social Security Administration Act 1992, omit section 121A (recovery of contributions etc in England and Wales).
FA 1994
3 (1) FA 1994 is amended as follows.
(2) Omit section 10A (breaches of controlled goods agreements).
(3) In Schedule 7 (insurance premium tax), omit paragraph 18A (breaches of controlled goods agreements).
VATA 1994
4 In VATA 1994, omit section 67A (breach of controlled goods agreement).
FA 1996
5 In Schedule 5 to FA 1996 (landfill tax), omit paragraph 23A (controlled goods agreements).
FA 1997
6 In section 51 of FA 1997 (enforcement by distress), omit subsection (A1).
FA 2000
7 In Schedule 6 to FA 2000 (climate change levy), omit paragraph 89A (controlled goods agreements).
FA 2001
8 In Schedule 5 to FA 2001 (aggregates levy: recovery and interest), omit paragraph 14A (controlled goods agreements).
FA 2003
9 In Schedule 12 to FA 2003 (stamp duty land tax: collection and recovery), omit paragraph 1A (recovery of tax in England and Wales).
Tribunals, Courts and Enforcement Act 2007 (c. 15)
10 (1) Schedule 12 of the Tribunals, Courts and Enforcement Act 2007 (taking control of goods) is amended as follows.
(2) Omit paragraph 14(5)(relevant premises where enforcement agent acting under section 121A of Social Security Administration Act 1992).
(3) In paragraph 19(2) (powers to use reasonable force), for paragraphs (b) to (e) substitute—
(b) section 127 of the Finance Act 2008.
Other repeals
11 In consequence of the preceding provisions of this Schedule, omit—
(a) paragraph 8 of Schedule 5 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2),
(b) paragraph 6 of Schedule 11 to the Welfare Reform and Pensions Act 1999 (c. 30),
(c) section 5(1) of the National Insurance Contributions and Statutory Payments Act 2004 (c. 3), and
(d) paragraphs 33, 104(2), 114, 116(2), 119, 123, 126(2), 136, 140 and 147(2) of Schedule 13 to the Tribunals, Courts and Enforcement Act 2007 (c. 15).
Part 2 Consequential provision: summary warrant
TMA 1970
12 In TMA 1970 omit—
(a) section 63 (recovery of tax in Scotland), and
(b) section 63A (sheriff officer's fees and outlays).
Debtors (Scotland) Act 1987 (c. 18)
13 (1) In section 1 (time to pay directions)—
(a) in subsection (5)(d), for “in respect of tax or as if it were tax” substitute “ under or by virtue of any enactment or under a contract settlement ”,
(b) in subsection (5)(f), omit sub-paragraphs (i), (iii) and (iv), and
(c) after subsection (8) insert—
(8A) In paragraph (d) of subsection (5) above, “contract settlement” means an agreement made in connection with any person's liability to make a payment to the Commissioners for Her Majesty's Revenue and Customs under or by virtue of any enactment.
(2) In section 5 (time to pay orders)—
(a) in subsection (4)(d), for “in respect of tax or as if it were tax” substitute “ under or by virtue of any enactment or under a contract settlement ”,
(b) in subsection (4)(f), omit sub-paragraphs (i), (iii) and (iv), and
(c) after subsection (8) insert—
(8A) In paragraph (d) of subsection (4) above, “contract settlement” means an agreement made in connection with any person's liability to make a payment to the Commissioners for Her Majesty's Revenue and Customs under or by virtue of any enactment.
(3) In section 106 (interpretation), in the definition of “summary warrant”—
(a) omit paragraph (cc),
(b) in paragraph (d), for “any of the enactments” substitute “ the enactments (other than the Taxes Management Act 1970) ”, and
(c) after that paragraph insert—
(e) section 128 of the Finance Act 2008.
Social Security Administration Act 1992 (c. 5)
14 In the Social Security Administration Act 1992, omit section 121B (recovery of contributions etc in Scotland).
FA 1997
15 In FA 1997, omit section 52 (recovery of relevant tax in Scotland).
FA 2003
16 In Schedule 12 to FA 2003 (stamp duty land tax: collection and recovery), omit paragraph 3 (recovery of tax in Scotland).
SCHEDULE 44 Certificates of debt: consequential provision
Section 138
TMA 1970
1 In section 70 of TMA 1970 (evidence), omit subsections (1) and (2).
OTA 1975
2 In the table in paragraph 2(1) of Schedule 2 to OTA 1975 (management and collection of petroleum revenue tax), omit the entries in respect of section 70(1) and (2) of TMA 1970.
IHTA 1984
3 In section 254 of IHTA 1984 (evidence), omit subsection (2).
Social Security Administration Act 1992 (c. 5)
4 In section 118 of the Social Security Administration Act 1992 (evidence of non-payment), omit subsections (1), (3) and (7).
FA 1994
5 In Schedule 7 to FA 1994 (insurance premium tax), in paragraph 29(1) (evidence by certificate)—
(a) in paragraph (a), after “Act,” insert “ or ”, and
(b) omit paragraph (c) (and the “or” before it).
VATA 1994
6 In Schedule 11 to VATA 1994 (administration, collection and enforcement of VAT), in paragraph 14(1) (evidence by certificate), omit paragraph (d) (and the “or” before it).
FA 1996
7 In Schedule 5 to FA 1996 (landfill tax), in paragraph 37(1) (evidence by certificate)—
(a) in paragraph (a), after “Act,” insert “ or ”, and
(b) omit paragraph (c) (and the “or” before it).
FA 2000
8 In Schedule 6 to FA 2000 (climate change levy), in paragraph 135(1) (evidence by certificate)—
(a) in paragraph (a), after “levy,” insert “ or ”, and
(b) omit paragraphs (c) and (d).
FA 2001
9 In Schedule 7 to FA 2001 (aggregates levy: information and evidence etc), in paragraph 12(1)—
(a) in paragraph (a), after “registered,” insert “ or ”, and
(b) omit paragraphs (c) and (d).
FA 2003
10 In Schedule 12 to FA 2003 (stamp duty land tax: collection and recovery of tax), omit paragraph 7 (evidence of unpaid debt) and the heading before it.
Other repeals
11 In consequence of the preceding provisions of this Schedule, omit—
(a) paragraph 21 of Schedule 19 to FA 1994,
(b) section 62(1) of the Social Security Act 1998 (c. 14),
(c) paragraph 32 of Schedule 19 to FA 1998,
(d) paragraph 7(2) and (6) of Schedule 5 to the Social Security (Transfer of Functions, etc.) Act 1999 (c. 2),
(e) section 89(3) of FA 2001, and
(f) paragraph 135(2) of Schedule 6 to ITEPA 2003.
SCHEDULE 45 Vehicle excise duty: offence of using or keeping unlicensed vehicle
Section 145
Introductory
1 VERA 1994 is amended as follows.
Amendments of section 29
2 (1) Section 29 (offence of using or keeping unlicensed vehicle) is amended as follows.
(2) In subsection (1), for “on a public road a vehicle (not being an exempt vehicle)” substitute “ a vehicle ”.
(3) After subsection (2) insert—
(2A) Subsection (1) does not apply to a vehicle if—
(a) it is an exempt vehicle in respect of which regulations under this Act require a nil licence to be in force and a nil licence is in force in respect of the vehicle, or
(b) it is an exempt vehicle that is not one in respect of which regulations under this Act require a nil licence to be in force.
(2B) Subsection (1) does not apply to a vehicle if—
(a) the vehicle is being neither used nor kept on a public road, and
(b) the particulars and declaration required to be furnished and made by regulations under section 22(1D) have been furnished and made in accordance with the regulations and the terms of the declaration have at no time been breached.
(2C) Subsection (1) does not apply to a vehicle if the vehicle is kept by a motor trader or vehicle tester at business premises.
(2D) The Secretary of State may by regulations make provision amending this section for the purpose of providing further exceptions from subsection (1) (or varying or revoking any such further exceptions).
(2E) A person accused of an offence under subsection (1) is not entitled to the benefit of an exception from subsection (1) conferred by or under this section unless evidence is adduced that is sufficient to raise an issue with respect to that exception; but where evidence is so adduced it is for the prosecution to prove beyond reasonable doubt that the exception does not apply.
(4) In subsection (3), for “in respect of the vehicle” substitute “ in respect of using or keeping the vehicle on a public road ”.
(5) In subsection (7), for “kept (but not used)” substitute “ not being used ”.
Amendment of section 30
3 In section 30(2) (additional penalty for keeper of unlicensed vehicle), for “appropriate to the vehicle” substitute “ chargeable in respect of using or keeping the vehicle on a public road ”.
Amendments of Schedule 2A
4 Schedule 2A (immobilisation, removal and disposal of vehicles) is amended as follows.
5 (1) Paragraph 1 (immobilisation) is amended as follows.
(2) In sub-paragraph (1), for “on a public road” substitute “ in any place other than a place to which this Schedule does not apply ”.
(3) After that sub-paragraph insert—
(1A) This Schedule does not apply to—
(a) any place which is within the curtilage of, or in the vicinity of, a dwelling-house, mobile home or houseboat and which is normally enjoyed with it, or
(b) any place which is within the curtilage of, or in the vicinity of, a building consisting entirely (apart from common parts) of two or more dwellings and which is normally enjoyed only by the occupiers of one or more of those dwellings.
(4) In sub-paragraph (2)—
(a) after “direction may” insert “ enter the place and ”, and
(b) omit “on the same or another public road”.
(5) For sub-paragraph (6) substitute—
(6) The second requirement is that—
(a) evidence that no offence under section 29(1) was being committed when the immobilisation device was fixed or the vehicle moved is produced in accordance with instructions specified in the immobilisation notice,
(b) such sum as may be prescribed is paid in any manner specified in the immobilisation notice, or
(c) any other prescribed conditions are fulfilled.
(6A) The conditions prescribed under sub-paragraph (6)(c) may include a condition that any of the following declarations is made—
(a) a declaration that an appropriate licence was in force for the vehicle at the time when the immobilisation device was fixed or the vehicle moved,
(b) (unless the vehicle was stationary on a public road) a declaration that a relevant declaration was in force for the vehicle at that time, or
(c) a declaration that at that time the vehicle was an exempt vehicle which was not one in respect of which regulations under this Act require a nil licence to be in force.
(6) Insert at the end—
(9) In sub-paragraph (6A)(a) “appropriate licence”, in relation to a vehicle, means—
(a) a vehicle licence,
(b) a trade licence which entitled the holder to keep the vehicle where it was stationary, or
(c) a nil licence.
(10) For the purposes of sub-paragraph (6A)(b)—
(a) “relevant declaration” means the declaration required to be made by regulations under section 22(1D), and
(b) a relevant declaration is in force for a vehicle if the vehicle is neither used nor kept on a public road (except under a trade licence) and the declaration has been made, and the particulars required to be furnished by regulations under section 22(1D) have been furnished, in relation to the vehicle in accordance within the regulations within the immediately preceding period of 12 months.
6 In paragraph 2(4) (offences connected with immobilisation), for paragraphs (a) and (b) substitute—
(a) a person makes a declaration described in paragraph 1(6A)(a), (b) or (c) with a view to securing the release of a vehicle from an immobilisation device purported to have been fixed in accordance with the regulations, and
.
7 (1) Paragraph 3 (removal and disposal of vehicles) is amended as follows.
(2) In sub-paragraph (1)(a)(i), for “on a public road” substitute “ in any place other than a place to which this Schedule does not apply ”.
(3) In sub-paragraph (2), after “direction, may” insert “ enter the place and ”.
(4) In sub-paragraph (7), for paragraphs (c) and (d) substitute—
(c) the production of evidence that no offence under section 29(1) was committed;
(d) payment of a prescribed sum where such evidence is not produced;
(e) the making of a declaration described in paragraph 1(6A)(a), (b) or (c).
8 In paragraph 4(1) (offences as to securing possession of vehicles), for paragraphs (a) and (b) substitute—
(a) a person makes a declaration described in paragraph 1(6A)(a), (b) or (c) with a view to securing possession of a vehicle purported to have been delivered into the custody of a person in accordance with provision made under paragraph 3, and
.
SCHEDULE 46 Government borrowing: alternative finance arrangements
Section 157
Introduction
1 In this Schedule “regulations” means regulations under section 157.
2 Paragraphs 3 to 14 do not limit the generality of the power conferred by section 157.
Alternative finance arrangements that are to be available
3 (1) Regulations may make provision about the kind or kinds of alternative finance arrangements that are to be available for raising money.
(2) That includes provision specifying, or about the specification of, available arrangements (or any aspect of available arrangements).
Terms, conditions and procedures
4 (1) Regulations may make provision about—
(a) the terms on which money is to be raised through alternative finance arrangements,
(b) the conditions subject to which money is to be raised through alternative finance arrangements, and
(c) the procedures for the raising of money through alternative finance arrangements.
(2) That includes provision specifying, or about the specification of, terms, conditions or procedures.
Decisions to raise money through alternative finance arrangements
5 (1) Regulations may make provision about decisions by the Treasury to raise money through alternative finance arrangements.
(2) Regulations under this paragraph may, in particular, make provision about considerations that may be, must be, or must not be, taken into account in—
(a) deciding the terms on which to raise money through alternative finance arrangements,
(b) deciding whether or not to raise money through alternative finance arrangements, or
(c) deciding what amount of money to raise through alternative finance arrangements.
Involvement of persons other than the Treasury
6 (1) Regulations may make provision about the involvement of persons other than the Treasury in the raising of money through alternative finance arrangements.
(2) Regulations under this paragraph may, in particular, make provision for the Treasury to enter into arrangements with other persons.
Ancillary arrangements
7 (1) Regulations may make provision about ancillary arrangements.
(2) Regulations under this paragraph may, in particular, make provision about the terms or conditions of ancillary arrangements (including terms or conditions about payments).
(3) That includes provision specifying, or about the specification of, terms or conditions.
(4) In this paragraph “ancillary arrangements” means arrangements that are connected with the raising of money through alternative finance arrangements (including arrangements to facilitate or enable money to be raised through alternative finance arrangements).
Property
8 (1) Regulations may make provision about property to be employed in raising money through alternative finance arrangements.
(2) That includes provision—
(a) about selection of property,
(b) specifying, or about the specification of, property selected,
(c) about dealings with property, and
(d) about the holding of property.
(3) Regulations under sub-paragraph (2)(c) or (d) may, in particular, make provision about the terms on which property is to be dealt with or held (including terms about payments).
(4) That includes provision specifying, or about the specification of, terms or conditions.
(5) In this paragraph “property” includes land.
(6) In this paragraph a reference to a dealing with property includes—
(a) a transfer of property, and
(b) the creation or termination of a right, interest or estate in property (including a legal or equitable right, interest or estate).
Powers and duties
9 Regulations may confer powers, or impose duties, on any person (including the Treasury, the Secretary of State or another Minister of the Crown).
Liabilities
10 Regulations may make—
(a) provision for expenditure and other liabilities to be incurred in connection with raising money through alternative finance arrangements, and
(b) provision about how expenditure and other liabilities are to be met.
Money raised
11 (1) Regulations may make provision about the treatment of money raised through alternative finance arrangements.
(2) That includes provision specifying, or about the specification of, the account or fund into which money is to be paid.
Other legislation
12 (1) Regulations may make modifications of any enactment.
(2) Regulations may provide that available alternative finance arrangements are to be treated for the purposes of any enactment—
(a) as an investment or security of a particular description, or
(b) as an investment or security listed on a particular stock exchange.
(3) In this paragraph—
“available alternative finance arrangements” means alternative finance arrangements of a kind that, under regulations, are available for raising money;
“enactment” means an enactment contained in an Act or other instrument;
“modifications” includes amendments, repeals and revocations.
Things to be done otherwise than in regulations
13 (1) The power under paragraph 3(2), 4(2), 7(3), 8(2)(b) or (4), or 11(2) to make provision about the specification of the matter mentioned there may, in particular, be exercised so as to provide for the Treasury or any other person to specify that matter otherwise than in regulations.
(2) Regulations may provide for the Treasury or any other person to do anything else otherwise than in regulations.
14 (1) This paragraph applies if regulations provide for a person to do something otherwise than in regulations.
(2) Regulations may make provision about considerations that may be, must be, or must not be, taken into account by a person in connection with the doing of that thing.
Regulations to be made by SI
15 Regulations are to be made by statutory instrument.
Parliamentary scrutiny
16 (1) A statutory instrument containing regulations that amend or repeal an enactment contained in an Act may not be made unless a draft has been laid before, and approved by resolution of, the House of Commons.
(2) Subject to that, a statutory instrument containing regulations is subject to annulment in pursuance of a resolution of the House of Commons (unless a draft of the statutory instrument has been approved by resolution of the House of Commons).
Interpretation
17 (1) In this Schedule a reference to a person other than the Treasury includes a reference to—
(a) a body corporate established by or under regulations, and
(b) a company formed under the Companies Acts.
(2) For the purposes of sub-paragraph (1)(b), it does not matter—
(a) whether a company is formed specially in connection with the raising of money through alternative finance arrangements,
(b) whether a company is formed by the Treasury, or
(c) whether a company is independent of the Treasury.