Taxes Management Act 1970

PART I — ADMINISTRATION

Responsibility for certain taxes

1

The Commissioners for Her Majesty’s Revenue and Customs shall be responsible for the collection and management of—

• (a) income tax,

• (b) corporation tax, and

• (c) capital gains tax.

General Commissioners

2

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General Commissioners: costs and expenses in legal proceedings.

2A

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Clerk to General Commissioners.

3

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General Commissioners and clerks: indemnity.

3A

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Special Commissioners.

4

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Deputy Special Commissioners.

4A

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General and Special Commissioners.

5

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Declarations on taking office.

6

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART II — RETURNS OF INCOME AND GAINS

Income tax

Notice of liability to income tax and capital gains tax.

7

• (1) Every person who—

• (a) is chargeable to income tax or capital gains tax for any year of assessment, and

• (b) falls within subsection (1A) or (1B),

shall, subject to subsection (3) below, within the notification period, give notice to an officer of the Board that he is so chargeable.

• (1A) A person falls within this subsection if the person has not received a notice under section 8 requiring a return for the year of assessment of the person's total income and chargeable gains.

• (1B) A person falls within this subsection if the person—

• (a) has received a notice under section 8 requiring a return for the year of assessment of the person's total income and chargeable gains, and

• (b) has received a notice under section 8B withdrawing the notice under section 8.

• (1C) In subsection (1) “the notification period” means—

• (a) in the case of a person who falls within subsection (1A), the period of 6 months from the end of the year of assessment, or

• (b) in the case of a person who falls within subsection (1B)—

• (i) the period of 6 months from the end of the year of assessment, or

• (ii) the period of 30 days beginning with the day after the day on which the notice under section 8 was withdrawn,

whichever ends later.

• (2) In the case of persons who are chargeable as mentioned in subsection (1) above as the relevant trustees of a settlement, that subsection and subsections (1A) to (1C) have effect as if references to a notice under section 8 were references to a notice under section 8A.

• (2A) A person who—

• (a) falls within subsection (1A) or (1B), and

• (b) is notified of a simple assessment for the year of assessment,

is not required to give notice under subsection (1) for that year unless the person is chargeable to an amount of income tax or capital gains tax for the year of assessment ... that is not included in the assessment.

• (3) A person shall not be required to give notice under subsection (1) above in respect of a year of assessment if for that year—

• (a) the person's total income consists of income from sources falling within subsections (4) to (7) below,

• (b) the person has no chargeable gains, and

• (c) the person is not liable to an amount of tax under any provision listed in relation to the person in section 30 of ITA 2007 (additional tax) other than Chapter 9 of Part 10 of ITEPA 2003 (winter fuel payment charge).

• (4) A source of income falls within this subsection in relation to a year of assessment if—

• (a) all payments of, or on account of, income from it during that year, and

• (b) all income from it for that year which does not consist of payments,

have or has been taken into account in the making of deductions or repayments of tax under PAYE regulations.

• (5) A source of income falls within this subsection in relation to any person and any year of assessment if all income from it for that year has been or will be taken into account—

• (a) in determining that person’s liability to tax, or

• (b) in the making of deductions or repayments of tax under PAYE regulations.

• (6) A source of income falls within this subsection in relation to any person and any year of assessment if all income from it for that year is—

• (a) income from which income tax has been deducted; or

• (b) income from or on which income tax is treated as having been deducted or paid,

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

and that person is not for that year liable to tax at a rate other than the basic rate, the property basic rate, the savings basic rate, the dividend nil rate , the Scottish basic rate, a Scottish rate below the Scottish basic rate, the Scottish intermediate rate, the Welsh basic rate, the Welsh property basic rate, the dividend ordinary rate , the savings nil rate or the starting rate for savings.

• (6ZA) A source of income falls within this subsection in relation to any person and any year of assessment if for that year—

• (a) all income from the source is savings income (see section 18 of ITA 2007), and

• (b) the person—

• (i) is UK resident,

• (ii) is not liable to tax at the savings basic rate,

• (iii) is not liable to tax at the savings higher rate,

• (iv) is not liable to tax at the savings additional rate, and

• (v) is not charged to tax under section 832 of ITTOIA 2005 (relevant foreign income charged on remittance basis) on any savings income.

• (6A) A source of income falls within this subsection in relation to any person and any year of assessment if for that year—

• (a) all income from the source is dividend income (see section 19 of ITA 2007), and

• (b) the person—

• (i) is UK-resident,

• (ii) is not liable to tax at the dividend ordinary rate,

• (iii) is not liable to tax at the dividend upper rate,

• (iv) is not liable to tax at the dividend additional rate, and

• (v) is not charged to tax under section 832 of ITTOIA 2005 (relevant foreign income charged on remittance basis) on any dividend income.

• (7) A source of income falls within this subsection in relation to any person and any year of assessment if all income from it for that year is income on which he could not become liable to tax under a self-assessment made under section 9 of this Act in respect of that year.

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) For the purposes of this Act the relevant trustees of a settlement are—

• (a) in relation to income (other than gains treated as arising under Chapter 9 of Part 4 of ITTOIA 2005), the persons who are trustees when the income arises and any persons who subsequently become trustees; and

• (aa) in relation to gains treated as arising under Chapter 9 of Part 4 of ITTOIA 2005, the persons who are trustees in the year of assessment in which the gains arise and any persons who subsequently become trustees; and

• (b) in relation to chargeable gains, the persons who are trustees in the year of assessment in which the chargeable gains accrue and any persons who subsequently become trustees.

Disregard of certain NRCGT gains for purposes of section 7

7A

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Personal return.

8

• (1) For the purpose of establishing the amounts in which a person is chargeable to income tax and capital gains tax for a year of assessment, and the amount payable by him by way of income tax for that year, he may be required by a notice given to him by an officer of the Board—

• (a) to make and deliver to the officer ..., a return containing such information as may reasonably be required in pursuance of the notice, and

• (b) to deliver with the return such accounts, statements and documents, relating to information contained in the return, as may reasonably be so required.

• (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (1AA) For the purposes of subsection (1) above—

• (a) the amounts in which a person is chargeable to income tax and capital gains tax are net amounts, that is to say, amounts which take into account any relief or allowance a claim for which is included in the return; and

• (b) the amount payable by a person by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source ...

• (1B) In the case of a person who carries on a trade, profession, or business in partnership with one or more other persons, a return under this section shall include each amount which, in any relevant statement, is stated to be equal to his share of any income, loss, tax, credit or charge for the period in respect of which the statement is made.

• (1C) In subsection (1B) above “relevant statement” means a statement which, as respects the partnership, falls to be made under section 12AB of this Act for a period which includes, or includes any part of, the year of assessment ....

• (1D) A return under this section for a year of assessment (Year 1) must be delivered—

• (a) in the case of a non-electronic return, on or before 31st October in Year 2, and

• (b) in the case of an electronic return, on or before 31st January in Year 2.

• (1E) But subsection (1D) is subject to the following two exceptions.

• (1F) Exception 1 is that if a notice in respect of Year 1 is given after 31st July in Year 2 (but on or before 31st October), a return must be delivered—

• (a) during the period of 3 months beginning with the date of the notice (for a non-electronic return), or

• (b) on or before 31st January (for an electronic return).

• (1G) Exception 2 is that if a notice in respect of Year 1 is given after 31st October in Year 2, a return (whether electronic or not) must be delivered during the period of 3 months beginning with the date of the notice.

• (1H) The Commissioners—

• (a) shall prescribe what constitutes an electronic return, and

• (b) may make different provision for different cases or circumstances.

• (1I) Where a person is required to make and deliver a return under this section, the person may be required by an officer of His Majesty’s Revenue and Customs to include in the return any information that is specified or described in regulations made by the Commissioners (whether or not the information is relevant for the purpose mentioned in subsection (1)).

• (1J) The Commissioners may only specify or describe information in regulations under subsection (1I) if the Commissioners consider that the information is relevant for the purpose of the collection and management of any of the taxes listed in section 1.

• (1K) A person who fails to comply with a requirement imposed on them by virtue of subsection (1I) is liable to a penalty of £60.

• (1L) Regulations under subsection (1I) may make different provision for different purposes.

• (2) Every return under this section shall include a declaration by the person making the return to the effect than the return is to the best of his knowledge correct and complete.

• (3) A notice under this section may require different information, accounts and statements for different periods or in relation to different descriptions of source of income.

• (4) Notices under this section may require different information, accounts and statements in relation to different descriptions of person.

• (4A) Subsection (4B) applies if a notice under this section is given to a person within section 8ZA of this Act (certain persons employed etc by person not resident in United Kingdom who perform their duties for UK clients).

• (4B) The notice may require a return of the person's income to include particulars of any general earnings (see section 7(3) of ITEPA 2003) paid to the person.

• (5) In this section and sections 8A, 9 and 12AA of this Act, any reference to income tax deducted at source is a reference to income tax deducted or treated as deducted from any income or treated as paid on any income.

Interpretation of section 8(4A)

8ZA

• (1) For the purposes of section 8(4A) of this Act, a person (“F”) is within this section if each of conditions A to C is met.

• (2) Condition A is that F performs in the United Kingdom, for a continuous period of 30 days or more, duties of an office or employment.

• (3) Condition B is that the office or employment is under or with a person who—

• (a) is not resident in the United Kingdom, but

• (b) is resident outside the United Kingdom.

• (4) Condition C is that the duties are performed for the benefit of a person who—

• (a) is resident in the United Kingdom, or

• (b) carries on a trade, profession or vocation in the United Kingdom.

Trustee’s return.

8A

• (1) For the purpose of establishing the amounts in which the relevant trustees of a settlement, and the settlors and beneficiaries, are chargeable to income tax and capital gains tax for a year of assessment, and the amount payable by him by way of income tax for that year, an officer of the Board may by a notice given to any relevant trustee require the trustee—

• (a) to make and deliver to the officer ... , a return containing such information as may reasonably be required in pursuance of the notice, and

• (b) to deliver with the return such accounts, statements and documents, relating to information contained in the return, as may reasonably be so required;

and a notice may be given to any one trustee or separate notices may be given to each trustee or to such trustees as the officer thinks fit.

• (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (1AA) For the purposes of subsection (1) above—

• (a) the amounts in which a person is chargeable to income tax and capital gains tax are net amounts, that is to say, amounts which take into account any relief or allowance a claim for which is included in the return; and

• (b) the amount payable by a person by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source ...

• (1B) A return under this section for a year of assessment (Year 1) must be delivered—

• (a) in the case of a non-electronic return, on or before 31st October in Year 2, and

• (b) in the case of an electronic return, on or before 31st January in Year 2.

• (1C) But subsection (1B) is subject to the following two exceptions.

• (1D) Exception 1 is that if a notice in respect of Year 1 is given after 31st July in Year 2 (but on or before 31st October), a return must be delivered—

• (a) during the period of 3 months beginning with the date of the notice (for a non-electronic return), or

• (b) on or before 31st January (for an electronic return).

• (1E) Exception 2 is that if a notice in respect of Year 1 is given after 31st October in Year 2, a return (whether electronic or not) must be delivered during the period of 3 months beginning with the date of the notice.

• (1F) The Commissioners—

• (a) shall prescribe what constitutes an electronic return, and

• (b) may make different provision for different cases or circumstances.

• (1G) Where a person is required to make and deliver a return under this section, the person may be required by an officer of His Majesty’s Revenue and Customs to include in the return any information that is specified or described in regulations made by the Commissioners (whether or not the information is relevant for the purpose mentioned in subsection (1)).

• (1H) The Commissioners may only specify or describe information in regulations under subsection (1G) if the Commissioners consider that the information is relevant for the purpose of the collection and management of any of the taxes listed in section 1.

• (1I) A person who fails to comply with a requirement imposed on them by virtue of subsection (1G) is liable to a penalty of £60.

• (1J) Regulations under subsection (1G) may make different provision for different purposes.

• (2) Every return under this section shall include a declaration by the person making the return to the effect that the return is to the best of his knowledge correct and complete.

• (3) A notice under this section may require different information, accounts and statements for different periods or in relation to different descriptions of source of income.

• (4) Notices under this section may require different information, accounts and statements in relation to different descriptions of settlement.

• (5) The following references, namely—

• (a) references in section 9 or 28C of this Act to a person to whom a notice has been given under this section being chargeable to tax; and

• (b) references in section 29 of this Act to such a person being assessed to tax,

shall be construed as references to the relevant trustees of the settlement being so chargeable or, as the case may be, being so assessed.

Withdrawal by HMRC of notice under section 8 or 8A

8B

• (1) This section applies to a person who is given a notice under section 8 or 8A.

• (2) Before the end of the withdrawal period, HMRC may withdraw the notice (whether at the request of the person or otherwise).