Legalize / United Kingdom / Public General Act

Taxes Management Act 1970

Type Public General Act

Publication 1970-03-12

Last updated 2026-04-25

State In force

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PART VII — PERSONS CHARGEABLE IN A REPRESENTATIVE CAPACITY, ETC.

Income Tax

Bodies of persons.

71

(1) ... every body of persons shall be chargeable to income tax in like manner as any person is chargeable under the Income Tax Acts.

(2) Subject to section 108 of this Act, the chamberlain or other officer acting as treasurer, auditor or receiver for the time being of any body of persons chargeable to income tax shall be answerable for doing all such acts as are required to be done under the Income Tax Acts for the purpose of the assessment of the body and for payment of the tax.

(3) Every such officer as aforesaid may from time to time retain, out of any money coming into his hands on behalf of the body, so much thereof as is sufficient to pay the income tax charged upon the body, and shall be indemnified for all such payments made in pursuance of the Income Tax Acts .

Trustees, guardians, etc., of incapacitated persons.

72

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Further provision as to infants.

73

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Personal representatives.

74

(1) If a person chargeable to income tax dies, the executor or administrator of the person deceased shall be liable for the tax chargeable on such deceased person, and may deduct any payments made under this section out of the assets and effects of the person deceased .

(2) On neglect or refusal of payment, any person liable under this section may be proceeded against in like manner as any other defaulter .

Receivers appointed by a court.

75

(1) A receiver appointed by any court in the United Kingdom which has the direction and control of any property in respect of which income tax is charged in accordance with the provisions of the Income Tax Acts shall be assessable and chargeable with the tax in like manner and to the like amount as would be assessed and charged if the property were not under the direction and control of the court.

(2) Every such receiver shall be answerable for doing all matters and things required to be done under the Income Tax Acts for the purpose of assessment and payment of income tax .

Protection for certain trustees, agents and receivers.

76

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Capital gains tax

Application of Part VII to capital gains tax.

77

(1) This Part of this Act (except section 76 above) shall apply in relation to capital gains tax as it applies in relation to income tax . . . , and subject to any necessary modifications.

(2) This Part of this Act as applied by this section shall not affect the question of who is the person to whom chargeable gains accrue, or who is chargeable to capital gains tax, so far as that question is relevant for the purposes of any exemption, or of any provision determining the rate at which capital gains tax is chargeable.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

77A

PART 7A — Holders of licences under the Petroleum Act 1998

Licence-holders' liabilities for tax assessed on non-UK residents

Pre-conditions for serving secondary-liability notice

77B

(1) Conditions A to E are the pre-conditions for the purposes of section 77C.

(2) Condition A is that tax is assessed on a person not resident in the United Kingdom.

(3) Condition B is that the tax is assessed in reliance on—

(a) section 276 of the 1992 Act,

(b) section 874 of ITTOIA 2005, or

(4) Condition C is that the tax assessed is not tax under ITEPA 2003.

(5) Condition D is that—

(a) there is a licence to which the tax assessed is related (see section 77J for the meaning of tax related to a licence),

(b) there is more than one licence to which the tax assessed is related, or

(c) there is a licence, or more than one licence, to which part of the tax assessed is related but in addition part of the tax assessed is not related to any licence.

(6) Condition E is that the tax is not paid in full within 30 days after it becomes due and payable.

(7) In this Part “licence” means a licence under Part 1 of the Petroleum Act 1998.

Secondary-liability notices

77C

(1) If each of the pre-conditions (see section 77B) is met, an officer of Revenue and Customs may serve on the holder of the licence concerned, or on the holder of any of the licences concerned, a notice—

(a) that states particulars of the assessment,

(b) that states the amount remaining unpaid and the date when it became payable,

(c) that requires the holder to pay, within 30 days of the service of the notice, the amount for which the holder is liable, and

(d) that, if the amount for which the holder is liable is given by subsection (3) or section 77G(7), gives particulars of how the amount was determined.

(2) For the purposes of subsection (1), the amount for which the holder is liable is the amount remaining unpaid, together with any interest on it under sections 86 and 87A, but this is subject to subsection (3) and section 77G(7).

(3) In a case within section 77B(5)(b) or (c), the amount for which the holder of the licence is liable is given by—

$LT×(A+I)$

(4) In subsection (3)—

A is the amount remaining unpaid,

I is any interest due on that amount under sections 86 and 87A,

T is the total amount of the profits or chargeable gains in respect of which the assessment is made, and

L is so much of that total amount as is profits or chargeable gains related to the licence.

(5) The power under subsection (1) is subject to section 77E (certain pre-1974 cases).

(6) In this Part “secondary-liability notice” means a notice under subsection (1).

Payments under secondary-liability notices

77D

(1) Any amount which a person is required to pay by a secondary-liability notice may be recovered from the person as if it were tax due and duly demanded from the person.

(2) If a person (“H”) pays any amount which a secondary-liability notice requires H to pay, H may recover the amount from the person on whom the assessment concerned was made.

(3) A payment in pursuance of a secondary-liability notice is not allowed as a deduction in calculating any income, profits or losses for any tax purposes.

Exception for certain pre-1974 cases

77E

(1) Section 77C(1) does not give power to serve a secondary-liability notice on the holder of a licence if the profits arose, or the chargeable gains accrued, to the assessed person in consequence of a contract made by the holder before 23 March 1973.

(2) The exception under subsection (1) does not apply if—

(a) the assessed person is connected with the holder, or

(b) the contract was substantially varied on or after 23 March 1973.

(3) For the purposes of subsection (2), whether a person is connected with another is determined in accordance with section 1122 of CTA 2010.

Exemption certificates

Issue, cancellation and effect of exemption certificates

77F

(1) This section applies if there is a person (“T”) who will or might become liable to tax which, if unpaid, could be recovered under this Part from a person (“H”) who is the holder of a licence.

(2) If an officer of Revenue and Customs, on an application made by T, is satisfied that T will comply with any obligations imposed on T by the Taxes Acts, the officer may issue to H a certificate exempting H from section 77C with respect to any tax payable by T.

(3) If a certificate is issued to H under subsection (2), an officer of Revenue and Customs may, by notice in writing to H, cancel the certificate from the date specified in the notice.

(4) The date specified in a notice under subsection (3) may not be earlier than 30 days after the service of the notice.

(5) If a certificate is issued to H under subsection (2), section 77C does not apply to any tax payable by T which becomes due while the certificate is in force.

(6) If a certificate is issued to H under subsection (2) but is subsequently cancelled under subsection (3), section 77C also does not apply to any tax payable by T which—

(a) becomes due after the certificate is cancelled, but

(b) is in respect of profits arising, or chargeable gains accruing, while the certificate is in force.

Liabilities for assessments made after exemption certificate cancelled

77G

(1) Subsection (7) applies if—

(a) each of conditions A to C is met, and

(b) one of conditions D and E is met.

(2) Condition A is that, after the cancellation under section 77F(3) of a certificate issued under section 77F(2) to a person (“H”) who is the holder of a licence, tax related to the licence is assessed on the applicant for the certificate.

(3) Condition B is that the tax is assessed in reliance on—

(a) section 276 of the 1992 Act,

(b) section 874 of ITTOIA 2005, or

(4) Condition C is that the tax assessed is not tax under ITEPA 2003.

(5) Condition D is that—

(a) ignoring section 77F, H could be required by a secondary-liability notice to pay all of the tax remaining unpaid under the assessment, and

(b) the profits or chargeable gains in respect of which the assessment is made include (but are not limited to) profits arising, or chargeable gains accruing, while the certificate is in force.

(6) Condition E is that—

(a) as a result of section 77C(3), but ignoring section 77F, H could be required by a secondary-liability notice to pay some, but not all, of the tax remaining unpaid under the assessment, and

(b) the profits or chargeable gains that are—

(i) ones in respect of which the assessment is made, and

(ii) related to the licence,

include (but are not limited to) profits arising, or chargeable gains accruing, while the certificate is in force.

(7) If this subsection applies then, for the purposes of section 77C(1), the amount for which the holder of the licence is liable is the amount given by—

$A×(1—CIFCIF+NIF)$

together with a corresponding proportion of any interest due under sections 86 and 87A on the amount remaining unpaid.

(8) In subsection (7)—

A is the amount that H could be required to pay as mentioned in paragraph (a) of whichever of conditions D and E is met (“the operative condition”),

CIF is the amount of the profits or chargeable gains mentioned in paragraph (b) of the operative condition that are ones arising, or accruing, while the certificate is in force, and

NIF is the amount of the profits or chargeable gains mentioned in paragraph (b) of the operative condition that are ones arising, or accruing, while the certificate is not in force.

Supplementary

Calculations under sections 77C(3) and 77G(7)

77H

(1) Subsection (2) applies for the purposes of calculating any of the following amounts of profits or chargeable gains—

(a) L in a calculation under section 77C(3),

(b) CIF in a calculation under section 77G(7), and

(2) The amount is to be calculated as if for the purposes of making a separate assessment in respect of those profits or chargeable gains on the person on whom the assessment was made.

(3) An officer of Revenue and Customs applying subsection (2) is to make all such allocations and apportionments of receipts, expenses, allowances and deductions taken into account, or made, for the purposes of the actual assessment as appear to the officer to be just and reasonable in the circumstances.

Information

77I

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

77J

(1) Subsections (2) and (3) apply for the purposes of this Part.

(2) An amount of tax is related to a licence if the tax is in respect of profits or chargeable gains related to the licence.

(3) Profits or chargeable gains are related to a licence if they are—

(a) profits from activities authorised by the licence,

(b) profits from activities carried on in connection with activities authorised by the licence, or

(i) activities authorised by the licence, or

(ii) activities carried on in connection with activities authorised by the licence.

(4) In this section—

(a) “designated area” means an area designated by Order in Council under section 1(7) of the Continental Shelf Act 1964,

(b) “exploration or exploitation activities” means activities carried on in connection with the exploration or exploitation of so much of the seabed and subsoil and their natural resources as is situated in the United Kingdom or a designated area,

(i) assets to be produced by exploration or exploitation activities,

(ii) interests in such assets, or

(iii) the benefit of such assets,

(d) any reference to the disposal of exploration or exploitation rights includes a reference to the disposal of unlisted shares deriving their value, or the greater part of their value, directly or indirectly from such rights,

(e) “shares” includes—

(i) stock, and

(ii) securities not creating or evidencing a charge on assets,

(f) “unlisted shares” means shares that are not listed on a recognised stock exchange, and

(g) “recognised stock exchange” has the meaning given by section 1005(1) and (2) of ITA 2007.

Other definitions in Part 7A

77K

(1) This section applies for the purposes of this Part.

(2) “Licence” has the meaning given by section 77B(7).

(3) “Secondary-liability notice” has the meaning given by section 77C(6).

PART VIII — CHARGES ON NON-RESIDENTS

Income tax

Method of charging non-residents.

78

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Profits from branch or agency.

79

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Charge on percentage of turnover.

80

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Taxation on basis of merchanting profit.

81

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Savings.

82

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Responsibilities and indemnification of persons in whose name a non-resident person is chargeable.

83

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Capital gains tax

Gains from branch or agency.

84

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Corporation tax

Application of Part VIII to corporation tax.

85

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

85A

PART IX — INTEREST ON OVERDUE TAX

Interest on overdue income tax and capital gains tax.

86

(1) The following, namely—

(a) any amount on account of income tax which becomes due and payable in accordance with section 59A(2) of this Act, and

(b) any income tax or capital gains tax which becomes due and payable in accordance with section 55 or 59B of this Act,

shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the relevant date until payment.

(2) For the purposes of subsection (1)(a) above the relevant date is whichever of the dates mentioned in section 59A(2) of this Act is applicable; and for the purposes of subsection (1)(b) above the relevant date is—

(a) in any such case as is mentioned in subsection (3) of section 59B of this Act, the last day of the period of three months mentioned in that subsection; and

(b) in any other case, the date mentioned in subsection (4) of that section.

(3) Subsection (1) above applies even if the relevant date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.

(4) Subsection (5) below applies where as regards a year of assessment—

(a) any person makes a claim under subsection (3) or (4) of section 59A of this Act in respect of the amounts (the section 59A amounts) payable by him in accordance with subsection (2) of that section, and

(b) an amount (the section 59B amount) becomes payable by him

(i) in accordance with section 59B(3), (4) or (5) of this Act or

(ii) in accordance with section 59B(6) of this Act in respect of income tax assessed under section 29 of this Act.

(5) Interest shall be payable under this section as if each of the section 59A amounts had been equal to—

(a) the aggregate of that amount and 50 per cent. of the section 59B amount, or

(b) the amount which would have been payable in accordance with subsection (2) of section 59A of this Act if the claim under subsection (3) or (4) of that section had not been made,

whichever is the less.

(6) In determining for the purposes of subsections (4) and (5) above what amount (if any) is payable by any person in accordance with section 59B(3), (4) or (5) of this Act or, in respect of income tax assessed under section 29 of this Act, in accordance with section 59B(6) of this Act—

(a) it shall be assumed that both of the section 59A amounts have been paid, and

(b) no account shall be taken of any amount which has been paid on account otherwise than under section 59A(2) of this Act or is payable by way of capital gains tax.

(7) Subsection (8) below applies where as regards any person and a year of assessment—

(a) amounts (the section 59A amounts) become payable by him in accordance with section 59A(2) of this Act, and

(b) an amount (the section 59B amount) becomes repayable to him in accordance with section 59B (3), (4) or (5) of this Act.

(8) So much of any interest payable under this section on either of the section 59A amounts as is not attributable to the amount by which that amount exceeds 50 per cent. of the section 59B amount shall be remitted.

(9) In determining for the purposes of subsections (7) and (8) above what amount (if any) is repayable to any person in accordance with section 59B(3), (4) or (5) of this Act, no account shall be taken of any amount which has been paid on account otherwise than under section 59A(2) of this Act or is payable by way of capital gains tax.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

86A

Interest on overdue income tax deducted at source

87

(1) Income tax which is assessable under Chapter 15 of Part 15 of ITA 2007 carries interest at the rate applicable under section 178 of the Finance Act 1989 from the date when it was due under section 951 of ITA 2007 until payment.

(2) Subsection (1) applies—

(a) whether or not an assessment is made, and

(b) whether or not income tax which is assessed has been paid when the assessment is made.

(3) Subsection (1) applies even if the date when the income tax should have been paid is a non-business day as defined by section 92 of the Bills of Exchange Act 1882.

(4) Subsection (5) applies to any income tax which—

(a) was payable under Chapter 15 of Part 15 of ITA 2007 (collection: deposit-takers, building societies and certain companies) in respect of payments within section 946 of that Act made in a return period,

(b) was not paid on the date when it was due under section 951 of that Act, and

(c) has subsequently been discharged or repaid under section 953 of that Act because the person who made the payments received payments on which it suffered income tax by deduction in a later return period.

(5) The income tax carries interest under subsection (1) from the date when it was due under section 951 of ITA 2007 until the earliest of—

(a) the date when the income tax was paid,

(b) the date when the person delivered a return for the later return period, and

but subsection (1) does not otherwise apply to the income tax.

(6) In this section “return period” means a period for which a return is required to be made under Chapter 15 of Part 15 of ITA 2007.

Interest on overdue corporation tax etc.

87A

(1) Corporation tax shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date when the tax becomes due and payable (in accordance with section 59D of this Act) until payment.

(2) Subsection (1) above applies even if the date when the tax becomes due and payable (as mentioned in that subsection) is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.

(3) In relation to corporation tax assessed or treated as assessed by virtue of section 346(2) or 347(1) of the principal Act, 137(4), 139(7) or 190 ... of the 1992 Act ... paragraph 75A(2) of Schedule 18 to the Finance Act 1998, ... paragraph 69 of Schedule 29 to the Finance Act 2002 or Chapter 7 of Part 22 of CTA 2010 (which enable unpaid corporation tax assessed on a company to be assessed on other persons in certain circumstances), the reference in subsection (1) above to the date when the tax becomes due and payable is a reference to the date when it became due and payable by the company.

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

(4A) In a case where—

(a) there is for an accounting period of a company (“the later period”) a non-trading deficit on the company’s loan relationships,

(b) as a result of a claim under section 389(1) or 459(1)(b) of CTA 2009 the whole or part of the deficit for the later period is set off against profits of an earlier accounting period (“the earlier period”), and

(c) if the claim had not been made, there would be an amount or, as the case may be, an additional amount of corporation tax for the earlier period which would carry interest in accordance with this section,

then, for the purposes of the determination at any time of whether any interest is payable under this section or of the amount of interest so payable, the amount mentioned in paragraph (c) above shall be taken to be an amount of unpaid corporation tax for the earlier period except so far as concerns interest for any time after the date on which any corporation tax for the later period became (or, as the case may be, would have become) due and payable as mentioned in subsection (8) below.

(4B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

(6) In any case where—

(a) on a claim under section 37 of CTA 2010, the whole or any part of a loss incurred in an accounting period (“the later period”) has been relieved (whether under that section or section 42 of that Act) for the purposes of corporation tax against profits of a preceding accounting period (“the earlier period”);

(b) the earlier period does not fall wholly within the period of twelve months immediately preceding the later period; and

(c) if the claim had not been made, there would be an amount or, as the case may be, an additional amount of corporation tax for the earlier period which would carry interest in accordance with this section,

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) In subsections (4), (4A) and (6) above, any reference to the date on which corporation tax for an accounting period became, or would have become, due and payable shall be construed on the basis that corporation tax for an accounting period becomes due and payable on the day following the expiry of nine months from the end of the accounting period.

(9) The power conferred by section 59E of this Act (alteration of date on which corporation tax becomes due and payable) does not include power to make provision in relation to subsection (4), (4A), (6) or (8) above the effect of which would be to change the meaning of references in subsection (4), (4A) or (6) above to the date on which corporation tax for an accounting period became, or would have become, due and payable (as mentioned in subsection (8) above).

Interest on tax recovered to make good loss due to taxpayer’s fault.

88

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Determinations under section 88.

88A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The prescribed rate of interest.

89

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interest on tax payable gross

90

(1) Interest payable under this Part of this Act

(a) shall be paid without any deduction of income tax ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

Effect on interest of reliefs.

91

(1) Where any amount of interest is payable under section 86 ... of this Act in relation to an assessment, and relief from tax charged by the assessment is given to any person by a discharge of any of that tax, such adjustment shall be made of the said amount, and such repayment shall be made of any amounts previously paid under that section in relation to the assessment, as are necessary to secure that the total sum, if any, paid or payable under that section in relation to the assessment is the same as it would have been if the tax discharged had never been charged.

(1A) Where interest is payable under section 87A of this Act in respect of an amount of corporation tax for an accounting period, and relief from tax is given by a discharge of any of that corporation tax—

(a) such adjustment shall be made of the amount of interest payable under that section in respect of corporation tax for that accounting period, and

(b) such repayment shall be made of any amounts of interest previously paid under that section in respect of that corporation tax,

as are necessary to secure that the total sum (if any) paid or payable under that section in respect of corporation tax for that accounting period is the same as it would have been if the tax discharged had never been charged.

(1B) Subsection (1A) above has effect subject to section 87A(4), (4A), (4B), (6) and (7) of this Act.

(2) Subject to subsection (2A) below Where relief from tax ... paid for any chargeable period is given to any person by repayment, he shall be entitled to require that the amount repaid shall be treated for the purposes of this section, so far as it will go, as if it were a discharge of the tax charged on him (whether alone or together with other persons) by or by virtue of any assessment for or relating to the same chargeable period, so, however, that it shall not be applied to any assessment made after the relief was given and that it shall not be applied to more than one assessment so as to reduce, without extinguishing, the amount of tax charged thereby.

(2A) In any case where—

(a) relief from corporation tax is given to any person by repayment, and

(b) that tax was paid for an accounting period ending after the day which is the appointed day for the purposes of section 10 of the principal Act,

that person shall be entitled to require that the amount repaid shall be treated for the purposes of this section, so far as it will go, as if it were a discharge of the corporation tax charged on him for that period.

(3) Notwithstanding anything in the preceding provisions of this section, no relief, whether given by way of discharge or repayment, shall be treated for the purposes of this section as—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) affecting tax charged by any assessment to income tax made under Schedule A or Schedule D if either—

(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) it arises in connection with income taxable otherwise than under Schedule A or Schedule D, or

(iii) it relates to a source income from which is taxable otherwise than under Schedule A or Schedule D or

(c) affecting tax charged at a rate other than the basic rate, the Scottish basic rate, a Scottish rate below the Scottish basic rate, the Scottish intermediate rate, the Welsh basic rate, the savings nil rate or the starting rate for savings on income from which tax has been deducted (otherwise than under PAYE regulations) or is treated as having been deducted, unless it is a relief from the tax so charged.

(4) For the purposes of this section a relief from corporation tax or capital gains tax shall not be treated as affecting tax charged by any assessment unless the assessment is to the same tax .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

91A

Remission in certain cases of interest on tax in arrear by reason of exchange restrictions.

92

(1) The provisions of this section shall have effect where the Board are satisfied as respects any tax carrying interest under section 86 of this Act—

(a) that the tax is in respect of income or chargeable gains arising in a country outside the United Kingdom, and

(b) that, as the result of action of the government of that country, it is impossible for the income or gains to be remitted to the United Kingdom, and

(c) that having regard to the matters aforesaid and to all the other circumstances of the case it is reasonable that the tax should for the time being remain uncollected,

and the Board allow the tax to remain uncollected accordingly.

(2) Interest on the said tax shall, subject to subsection (3) below, cease to run under the said section 86 as from the date on which the Board were first in possession of the information necessary to enable them to be satisfied as aforesaid and, if the said date is not later than three months from the time when the tax became due and payable, the interest thereon under the said section 86 in respect of the period before the said date shall be remitted.

(3) Where, under subsection (2) above, interest has ceased to run on any tax and thereafter demand is made by the collector or other proper officer for payment of all or any of that tax, interest under the said section 86 shall again begin to run from the date of the demand in respect of the amount demanded:

PART X — PENALTIES, ETC.

Failure to make return for income tax and capital gains tax.

93

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to make partnership return.

93A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to make return for corporation tax.

94

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Incorrect return or accounts for income tax or capital gains tax.

95

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Incorrect partnership return or accounts.

95A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Incorrect return or accounts for corporation tax.

96

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Incorrect return or accounts: supplemental.

97

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to produce documents under section 19A.

97AA

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Two or more tax-geared penalties in respect of the same tax.

97A

Where two or more penalties—

(a) are incurred by any person and fall to be determined by reference to any income tax or capital gains tax with which he is chargeable for a year of assessment; ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

each penalty after the first shall be so reduced that the aggregate amount of the penalties, so far as determined by reference to any particular part of the tax, does not exceed whichever is or, but for this section, would be the greater or greatest of them, so far as so determined.

Special returns, etc.

98

(1) Subject to the provisions of this section and section 98A below, where any person—

(a) has been required, by a notice served under or for the purposes of any of the provisions specified in the first column of the Table below, to deliver any return or other document, to furnish any particulars, to produce any document, or to make anything available for inspection, and he fails to comply with the notice, or

(b) fails to furnish any information, give any certificate or produce any document or record in accordance with any of the provisions specified in the second column of the Table below,

he shall be liable, subject to subsections (3) and (4) below—

(i) to a penalty not exceeding £300, and

(ii) if the failure continues after a penalty is imposed under paragraph (i) above, to a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which the penalty under paragraph (i) above was imposed (but excluding any day for which a penalty under this paragraph has already been imposed).

(2) Subject to section 98A below, where a person fraudulently or negligently furnishes, gives, produces or makes any incorrect information, certificate, document, record or declaration of a kind mentioned in any of the provisions specified in either column of the Table below, he shall be liable to a penalty not exceeding £3000.

(3) No penalty shall be imposed under subsection (1) above in respect of a failure within paragraph (a) of that subsection at any time after the failure has been remedied.

(4) No penalty shall be imposed under paragraph (ii) of subsection (1) above in respect of a failure within paragraph (b) of that subsection at any time after the failure has been remedied.

(4A) If—

(a) a failure to comply with Chapter 15 or 16 of Part 15 of ITA 2007 arises from a person’s failure to deliver an account, or show the amount, of a payment, and

(b) the payment is within subsection (4B) , (4D) ... or (4E) below,

subsection (1) above shall have effect as if for “£300” there were substituted “£3,000” and as if for “£60” there were substituted “£600”.

(4B) A payment is within this subsection if—

(a) the payment is made by a company, local authority or qualifying partnership (within the meaning of section 932 of ITA 2007) without an amount representing income tax on the payment being deducted from it,

(b) at the time the payment is made, the company, authority or partnership—

(i) does not believe that the payment is an excepted payment for the purposes of Chapter 11 of Part 15 of ITA 2007 (payments between companies etc: exception from duties to deduct), or

(ii) if it does so believe, cannot reasonably do so,

(c) the payment is one from which tax is deductible under Part 15 of ITA 2007 unless the company, authority or partnership reasonably believes that it is an excepted payment for the purposes of Chapter 11 of that Part, and

(d) the payment is not an excepted payment at the time the payment is made.

(4C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4D) A payment is within this subsection if—

(a) it is a payment from which a sum representing income tax must be deducted under Chapter 6 (deduction from annual payments and patent royalties) or 7 (deduction from other payments connected with intellectual property) of Part 15 of ITA 2007,

(b) a company, purporting to rely on section 911 of that Act (double taxation arrangements: deduction at treaty rate), deducts less from the payment than required by those Chapters, and

(c) at the time the payment is made the payee (as defined in section 913 of that Act) is not entitled to relief under double taxation arrangements (as defined in section 1023 of that Act) and the company—

(i) does not believe that it is entitled to such relief, or

(ii) if it does so believe, cannot reasonably do so.

(4DA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4E) A payment is within this subsection if—

(a) it is an interest distribution made to a unit holder by the trustees of an authorised unit trust,

(b) the trustees, in purported reliance on the reputable intermediary condition being fulfilled with respect to the unit holder, do not comply with the obligation under section 874 of ITA 2007 to make a deduction from the interest distribution,

(d) the trustees did not believe that the unit holder was not ... resident in the United Kingdom or could not reasonably have so believed (so that that condition was not so fulfilled).

Expressions used in this subsection have the same meaning as in regulations made under section 17(3) of the Finance (No. 2) Act 2005 (as at 1st April 2006, see the Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964)).

(4F) If a person fails to furnish any information or produce any document or record in accordance with regulations under section 716B of ITEPA 2003, subsection (1) has effect as if—

(a) for “£300” there were substituted “ £3,000 ”, and

(b) for “£60” there were substituted “ £600 ”.

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

Special penalties in the case of certain returns.

98A

(1) PAYE regulations or regulations under section 70(1)(a) or 71 of the Finance Act 2004 (sub-contractors) may provide that this section shall apply in relation to any specified provision of the regulations.

(2) Where this section applies in relation to a provision of regulations, any person who fails to make a return in accordance with the provision shall be liable—

(a) to a penalty or penalties of the relevant monthly amount for each month (or part of a month) during which the failure continues, but excluding any month after the twelfth or for which a penalty under this paragraph has already been imposed, and

(b) if the failure continues beyond twelve months, without prejudice to any penalty under paragraph (a) above, to a penalty not exceeding

(i) in the case of a provision of PAYE regulations, so much of the amount payable by him in accordance with the regulations for the year of assessment to which the return relates as remained unpaid at the end of 19th April after the end of that year, or

(ii) in the case of a provision of regulations under section 70(1)(a) or 71 of the Finance Act 2004, £3,000.

(3) For the purposes of subsection (2)(a) above, the relevant monthly amount in the case of a failure to make a return—

(a) where the number of persons in respect of whom particulars should be included in the return is fifty or less, is £100, and

(b) where the number is greater than fifty, is £100 for each fifty such persons and an additional £100 where that number is not a multiple of fifty.

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

UK Economic Interest Groupings and European Economic Interest Groupings.

98B

(1) In this section “grouping” means—

(a) a UK Economic Interest Grouping, or

(b) a grouping registered in a member State and formed in pursuance of Council Regulation (EEC) No. 2137/85 of 25 July 1985 on the European Economic Interest Grouping as it has effect in EU law.

(2) Subsections (2A) to (4) below apply where a grouping or member of a grouping required by a notice given under section 12A of this Act to deliver a return or other document fails to comply with the notice.

(2A) The grouping or member shall be liable to a penalty not exceeding £300 multiplied by the number of members of the grouping at the time of the failure to comply.

(2B) If, on an application made to it by an officer of the Board, the tribunal so directs, the grouping or member shall be liable, for each day on which the failure continues after the day on which the grouping or member is notified of the direction (but excluding any day for which a penalty under this subsection has already been imposed), to a further penalty or penalties not exceeding £60 multiplied by the number of members of the grouping at the end of that day.

(3) No penalty shall be imposed under subsection (2A) or (2B) above in respect of a failure at any time after the failure has been remedied.

(4) If a grouping to which, or member to whom, a notice is given proves that there was no income or chargeable gain to be included in the return, the penalty under subsections (2A) and (2B) above shall not exceed £100.

(5) Where a grouping or member fraudulently or negligently delivers an incorrect return, accounts or statement, or makes an incorrect declaration in a return delivered, under section 12A above, the grouping or member shall be liable to a penalty not exceeding £3000 multiplied by the number of members of the grouping at the time of delivery.

Notification under Part 7 of Finance Act 2004

98C

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Assisting in preparation of incorrect return, etc.

99

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Certificates of non-liability to income tax.

99A

If a person who gives a certificate of non-liability to income tax in pursuance of regulations under section 852 of ITA 2007—

(a) gives the certificate fraudulently or negligently, or

(b) fails to comply with any undertaking contained in the certificate in pursuance of the regulations,

he shall be liable to a penalty not exceeding £3,000.

Declarations under Chapter 2 of Part 15 of ITA 2007

99B

Where a person fraudulently or negligently gives any incorrect information in a declaration under any of sections 858 to 861 of ITA 2007, the person shall be liable to a penalty not exceeding £3,000.

Determination of penalties by officer of the Board.

100

(1) Subject to subsection (2) below and except where proceedings for a penalty have been instituted under section 100D below ... , an officer of the Board authorised by the Board for the purposes of this section may make a determination imposing a penalty under any provision of the Taxes Acts and setting it at such amount as, in his opinion, is correct or appropriate.

(2) Subsection (1) above does not apply where the penalty is a penalty under—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) section 94(1) above as it has effect before the substitution made by section 83 of the Finance (No. 2) Act 1987,

(c) section 98(1) above as it has effect before the amendments made by section 164 of the Finance Act 1989 or section 98(1)(i) above as it has effect after those amendments, subject to subsection (2A), or

(d) paragraph (a)(i) of section 98A(2) above as it has effect by virtue of section 165(2) of the Finance Act 1989, or

(e) section 98B(2)(a) above , or

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2A) Subsection (2)(c) does not exclude the application of subsection (1) where the penalty relates to a failure to furnish any information or produce any document or record in accordance with regulations under section 716B of ITEPA 2003 (employment intermediaries to keep, preserve and provide information etc).

(3) Notice of a determination of a penalty under this section shall be served on the person liable to the penalty and shall state the date on which it is issued and the time within such an appeal against the determination may be made.

(4) After the notice of a determination under this section has been served the determination shall not be altered except in accordance with this section or on appeal.

(5) If it is discovered by an officer of the Board authorised by the Board for the purposes of this section that the amount of a penalty determined under this section is or has become insufficient the officer may make a determination in a further amount so that the penalty is set at the amount which, in his opinion, is correct or appropriate.

(6) In any case where—

(a) a determination under this section is of a penalty under ... ... paragraph 18(2) of Schedule 18 to the Finance Act 1998 ... , and

(b) after the determination has been made it is discovered by an officer of the Board authorised by the Board for the purposes of this section that the amount which was taken into account as the relevant amount of tax is or has become excessive,

the determination shall be revised so that the penalty is set at the amount which is correct; and, where more than the correct amount has already been paid, the appropriate amount shall be repaid.

Provisions supplementary to section 100.

100A

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

(2) A penalty determined under section 100 above shall be due and payable at the end of the period of thirty days beginning with the date of the issue of the notice of the determination.

(3) A penalty determined under section 100 above shall for all purposes be treated as if it were charged in an assessment and due and payable.

Appeals against penalty determinations.

100B

(1) An appeal may be brought against the determination of a penalty under section 100 above and, subject to ... the following provisions of this section, the provisions of this Act relating to appeals shall have effect in relation to an appeal against such a determination as they have effect in relation to an appeal against an assessment to tax, except that references to the tribunal shall be taken to be references to the First-tier Tribunal.

(2) On an appeal against the determination of a penalty under section 100 above section 50(6) to (8) of this Act shall not apply but—

(a) in the case of a penalty which is required to be of a particular amount, the First-tier Tribunal may—

(i) if it appears ... that no penalty has been incurred, set the determination aside,

(ii) if the amount determined appears ... to be correct, confirm the determination, or

(iii) if the amount determined appears ... to be incorrect, increase or reduce it to the correct amount.

(b) in the case of any other penalty, the First-tier Tribunal may—

(i) if it appears ... that no penalty has been incurred, set the determination aside,

(ii) if the amount determined appears ... to be appropriate, confirm the determination,

(iii) if the amount determined appears ... to be excessive, reduce it to such other amount (including nil) as it considers appropriate, or

(iv) if the amount determined appears ... to be insufficient, increase it to such amount not exceeding the permitted maximum as it considers appropriate.

(3) In addition to any right of appeal on a point of law under section 11(2) of the TCEA 2007, the person liable to the penalty may appeal to the Upper Tribunal against the amount of the penalty which has been determined under subsection (2), but not against any decision which falls under section 11(5)(d) and (e) of the TCEA 2007 and was made in connection with the determination of the amount of the penalty.

(3A) Section 11(3) and (4) of the TCEA 2007 applies to the right of appeal under subsection (3) as it applies to the right of appeal under section 11(2) of the TCEA 2007.

(3B) On an appeal under this section the Upper Tribunal has the same powers as are conferred on the First-tier Tribunal by virtue of this section.

Penalty proceedings before First-tier Tribunal .

100C

(1) An officer of the Board authorised by the Board for the purposes of this section may commence proceedings before the First-tier Tribunal for any penalty to which subsection (1) of section 100 above does not apply by virtue of subsection (2) of that section.

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

(2) The person liable to the penalty shall be a party to the proceedings.

(3) Any penalty determined by the First-tier Tribunal in proceedings under this section shall for all purposes be treated as if it were tax charged in an assessment and due and payable.

(4) In addition to any right of appeal on a point of law under section 11(2) of the TCEA 2007, the person liable to the penalty may appeal to the Upper Tribunal against the determination of a penalty in proceedings under subsection (1), but not against any decision which falls under section 11(5)(d) and (e) of the TCEA 2007 and was made in connection with the determination of the amount of the penalty.

(4A) Section 11(3) and (4) of the TCEA 2007 applies to the right of appeal under subsection (4) as it applies to the right of appeal under section 11(2) of the TCEA 2007.

(5) On any such appeal the Upper Tribunal may—

(a) if it appears that no penalty has been incurred, set the determination aside,

(b) if the amount determined appears to be appropriate, confirm the determination,

(c) if the amount determined appears to be excessive, reduce it to such other amount (including nil) as the Upper Tribunal considers appropriate, or

(d) if the amount determined appears to be insufficient, increase it to such amount not exceeding the permitted maximum as the Upper Tribunal considers appropriate.

Penalty proceedings before court.

100D

(1) Where in the opinion of the Board the liability of any person for a penalty arises by reason of the fraud of that person or any other person, proceedings for the penalty may be instituted before the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland.

(2) Proceedings under this section which are not instituted (in England, Wales or Northern Ireland) under the Crown Proceedings Act 1947 by and in the name of the Board as an authorised department for the purposes of that Act shall be instituted—

(a) in England and Wales, in the name of the Attorney General,

(b) in Scotland, in the name of the Lord Advocate, and

(3) Any proceedings under this section instituted in England and Wales shall be deemed to be civil proceedings by the Crown within the meaning of Part II of the Crown Proceedings Act 1947 and any such proceedings instituted in Northern Ireland shall be deemed to be civil proceedings within the meaning of that Part of that Act as for the time being in force in Northern Ireland.

(4) If in proceedings under this section the court does not find that fraud is proved but consider that the person concerned is nevertheless liable to a penalty, the court may determine a penalty notwithstanding that, but for the opinion of the Board as to fraud, the penalty would not have been a matter for the court.

Evidence for purposes of proceedings relating to penalties.

101

An assessment which can no longer be varied by the tribunal on an appeal notified to it or by order of any court is sufficient evidence, for the purposes of—

(a) the preceding provisions of this Part, and

(b) the provisions of Schedule 18 to the Finance Act 1998 relating to penalties,

that the amounts in respect of which tax is charged in the assessment arose or were received as stated in the assessment.

Mitigation of penalties.

102

The Board may in their discretion mitigate any penalty, or stay or compound any proceedings for a penalty, and may also, after judgment, further mitigate or entirely remit the penalty.

Time limits for penalties.

103

(1) Subject to subsection (2) below, where the amount of a penalty is to be ascertained by reference to tax payable by a person for any period, the penalty may be determined by an officer of the Board, or proceedings for the penalty may be commenced before the tribunal or a Court—

(a) at any time within six years after the date on which the penalty was incurred, or

(b) at any later time within three years after the final determination of the amount of tax by reference to which the amount of the penalty is to be ascertained.

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

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

(4) A penalty to which subsection (1) does not apply may be so determined, or proceedings for such a penalty may be commenced before the tribunal or a court, at any time within six years after the date on which the penalty was incurred or began to be incurred.

Disapplication of sections 100 to 103 in the case of certain penalties

103ZA

Sections 100 to 103 do not apply to a penalty under—

(a) Schedule 24 to FA 2007 (penalties for errors),

(b) Schedule 36 to FA 2008 (information and inspection powers),

(d) Schedule 55 to FA 2009 (penalties for failure to make returns etc), ...

(e) Schedule 56 to that Act (penalties for failure to make payments on time), ...

(f) Schedule 23 to FA 2011 (data-gathering powers), ...

(g) Schedule 38 to FA 2012 (tax advisers: sanctionable conduct), ...

(ga) section 212A of the Finance Act 2013 (general anti-abuse rule), ...

(h) Part 4 of the Finance Act 2014 (follower notices and accelerated payments) ...

(i) Part 5 of Schedule 18 to the Finance Act 2016 (serial tax avoidance), ...

(j) Schedule 22 to the Finance Act 2016 (asset-based penalty) ...

(k) paragraph 1 or 45 of Schedule 16 to the Finance (No. 2) Act 2017 (enablers of defeated tax avoidance etc) , ...

(l) Schedule 18 to the Finance Act 2017.

(m) Schedule 24 to the Finance Act 2021 (penalties for failure to make returns etc),

(n) Schedule 25 to that Act (penalties for deliberately withholding information), or

(o) Schedule 26 to that Act (penalties for failure to pay tax).

Interest on penalties.

103A

A penalty under any of the provisions of Part II, IV or VA or this Part of this Act ... , or Schedule 18 to the Finance Act 1998, shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date on which it becomes due and payable until payment.

Saving for criminal proceedings.

104

The provisions of the Taxes Acts shall not, save so far as is otherwise provided, affect any criminal proceedings for any misdemeanour.

Admissibility of evidence not affected by offer of settlement etc.

105

(1) Statements made or documents produced by or on behalf of a person shall not be inadmissable in any such proceedings as are mentioned in subsection (2) below by reason only that it has been drawn to his attention —

(a) that where serious tax fraud has been committed the Board may accept a money settlement and that the Board will accept such a settlement, and will not pursue a criminal prosecution, if he makes a full confession of all tax irregularities, or

(b) that the extent to which he is helpful and volunteers information is a factor that will be taken into account in determining the amount of any penalty,

and that he was or may have been induced thereby to make the statements or produce the documents.

(2) The proceedings mentioned in subsection (1) above are—

(a) any criminal proceedings against the person in question for any form of fraudulent conduct in connection with or in relation to tax, and

(b) any proceedings against him for the recovery of any tax due from him and

Refusal to allow a deduction of income tax, and avoidance of agreements for payment without deduction.

106

(1) A person who refuses to allow a deduction of income tax authorised by the Taxes Acts to be made out of any payment shall incur a penalty of £50.

(2) Every agreement for payment of interest, rent or other annual payment in full without allowing any such deduction shall be void.

Evasion

Offence of fraudulent evasion of income tax

106A

(1) A person commits an offence if that person is knowingly concerned in the fraudulent evasion of income tax by that or any other person.

(2) A person guilty of an offence under this section is liable—

(a) on summary conviction, to imprisonment for a term not exceeding 12 months the general limit in a magistrates’ court or a fine not exceeding the statutory maximum, or both, or

(b) on conviction on indictment, to imprisonment for a term not exceeding 14 years or a fine, or both.

(3) In the application of subsection (2)(a)—

(a) in England and Wales in relation to offences committed before 2 May 2022, and

(b) in Northern Ireland,

for “12 months the general limit in a magistrates’ court” substitute “6 months”.

(4) This section does not apply to things done or omitted before 1st January 2001.

Offshore income, assets and activities

Offence of failing to give notice of being chargeable to tax

106B

(1) A person who is required by section 7 to give notice of being chargeable to income tax or capital gains tax (or both) for a year of assessment and who has not given that notice by the end of the notification period commits an offence if—

(a) the tax in question is chargeable (wholly or in part) on or by reference to offshore income, assets or activities, and

(b) the total amount of income tax and capital gains tax that is chargeable for the year of assessment on or by reference to offshore income, assets or activities exceeds the threshold amount.

(2) It is a defence for a person accused of an offence under this section to prove that the person had a reasonable excuse for failing to give the notice required by section 7.

(3) In this section “the notification period” has the same meaning as in section 7 (see subsection (1C) of that section).

Offence of failing to deliver return

106C

(1) A person who is required by a notice under section 8 to make and deliver a return for a year of assessment commits an offence if—

(a) the return is not delivered by the end of the withdrawal period,

(b) an accurate return would have disclosed liability to income tax or capital gains tax (or both) that is chargeable for the year of assessment on or by reference to offshore income, assets or activities, and

(c) the total amount of income tax and capital gains tax that is chargeable for the year of assessment on or by reference to offshore income, assets or activities exceeds the threshold amount.

(2) It is a defence for a person accused of an offence under this section to prove that the person had a reasonable excuse for failing to deliver the return.

(3) In this section “the withdrawal period” has the same meaning as in section 8B (see subsection (6) of that section).

Offence of making inaccurate return

106D

(1) A person who is required by a notice under section 8 to make and deliver a return for a year of assessment commits an offence if, at the end of the amendment period—

(a) the return contains an inaccuracy the correction of which would result in an increase in the amount of income tax or capital gains tax (or both) that is chargeable for the year of assessment on or by reference to offshore income, assets or activities, and

(b) the amount of that increase exceeds the threshold amount.

(2) It is a defence for a person accused of an offence under this section to prove that the person took reasonable care to ensure that the return was accurate.

(3) In this section “the amendment period” means the period for amending the return under section 9ZA.

Exclusions from offences under sections 106B to 106D

106E

(1) A person is not guilty of an offence under section 106B, 106C or 106D if the capacity in which the person is required to give the notice or make and deliver the return is—

(a) as a relevant trustee of a settlement, or

(b) as the executor or administrator of a deceased person.

(2) The Treasury may by regulations provide that a person is not guilty of an offence under section 106B, 106C or 106D if—

(a) conditions specified in the regulations are met, or

(b) circumstances so specified exist.

(3) The conditions may (in particular) include conditions in relation to the income, assets or activities on or by reference to which the tax in question is chargeable.

Offences under sections 106B to 106D: supplementary provision

106F

(1) Where a period of time is extended under subsection (2) of section 118 by HMRC, the tribunal or an officer (but not where a period is otherwise extended under that subsection), any reference in section 106B, 106C or 106D to the end of the period is to be read as a reference to the end of the period as so extended.

(2) The Treasury may by regulations specify the amount (which must not be less than £25,000) that is to be the threshold amount for the purposes of sections 106B to 106D.

(3) The Treasury may by regulations make provision as to the calculation for the purposes of sections 106B to 106D of—

(a) the amount of tax that is chargeable on or by reference to offshore income, assets or activities, and

(b) the increase in the amount of tax that is so chargeable as a result of correcting an inaccuracy.

(4) In sections 106B to 106D and this section “offshore income, assets or activities” means—

(a) income arising from a source in a territory outside the United Kingdom,

(b) assets situated or held in a territory outside the United Kingdom, or

(5) In subsection (4), “assets” has the meaning given in section 21(1) of the 1992 Act, but also includes sterling.

Penalties for offences under sections 106B to 106D

106G

(1) A person guilty of an offence under section 106B, 106C or 106D is liable on summary conviction—

(a) in England and Wales, to a fine or to imprisonment for a term not exceeding 51 weeks or to both, and

(b) in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale or to imprisonment for a term not exceeding 6 months or to both.

(2) In relation to an offence committed before the coming into force of section 281(5) of the Criminal Justice Act 2003, the reference in subsection (1)(a) to 51 weeks is to be read as a reference to 6 months.

Regulations under sections 106E and 106F

106H

(1) This section makes provision about regulations under sections 106E and 106F.

(2) If the regulations contain a reference to a document or any provision of a document and it appears to the Treasury that it is necessary or expedient for the reference to be construed as a reference to that document or that provision as amended from time to time, the regulations may make express provision to that effect.

(3) The regulations—

(a) may make different provision for different cases, and

(b) may include incidental, supplemental, consequential and transitional provision and savings.

(4) The regulations are to be made by statutory instrument.

(5) An instrument containing the regulations is subject to annulment in pursuance of a resolution of the House of Commons.

Scotland

Criminal liability for false statements made to obtain allowances.

107

(1) This section applies only in Scotland.

(2) If any person, for the purpose of obtaining any allowance, reduction, rebate or repayment in respect of tax, either for himself or for any other person, or, in any return made with reference to tax, knowingly makes any false statement or false representation, he shall be liable, on summary conviction, to imprisonment for a term not exceeding six months.

(3) Notwithstanding anything in the Summary Jurisdiction (Scotland) Act 1954, proceedings for an offence under this section may be commenced at any time within three years from the time when the offence was committed.

(4) The expression “return” in this section shall be construed without regard to the definition in section 118(1) of this Act .

PART XI — MISCELLANEOUS AND SUPPLEMENTAL

Settlements

Relevant trustees.

107A

(1) Subject to the following provisions of this section, anything which for the purposes of this Act is done at any time by or in relation to any one or more of the relevant trustees of a settlement shall be treated for those purposes as done at that time by or in relation to the other or others of those trustees.

(2) Subject to subsection (3) below, where the relevant trustees of a settlement are liable—

(a) to a penalty under section ... 12B ... ... of this Act or paragraph 2A of Schedule 1A to this Act or Schedule 24 to the Finance Act 2007 or Schedule 41 to the Finance Act 2008 or Schedule 55 to the Finance Act 2009 or Schedule 18 to the Finance Act 2017 or Schedule 22 to the Finance Act 2016 or Schedule 25 to the Finance Act 2021, or to interest under section 101 of the Finance Act 2009 on such a penalty;

(b) to make a payment in accordance with an assessment under section 30 of this Act, or to make a payment under section 59A ... or 59B of this Act or under Schedule 2 to the Finance Act 2019;

(c) to a penalty under Schedule 56 to the Finance Act 2009 or Schedule 26 to the Finance Act 2021, or to interest under section 101 of that Act the Finance Act 2009 on such a penalty;; or

(d) to interest under section 86 of this Act or section 101 of the Finance Act 2009,

the penalty, interest or payment may be recovered (but only once) from any one or more of those trustees.

(3) No amount may be recovered by virtue of subsection (2)(a) or (c) above from a person who did not become a relevant trustee until after the relevant time, that is to say—

(a) in relation to—

(i) a penalty under paragraph 4 of Schedule 55 to the Finance Act 2009 in respect of a return or other document falling within item 1, 2 or 3 of the Table in paragraph 1 of that Schedule, or

(ii) interest under section 101 of that Act on a penalty within sub-paragraph (i),

the beginning of the penalty date as defined in paragraph 1(4) of that Schedule;

(aa) in relation to a penalty under Schedule 22 to the Finance Act 2016, or to interest under section 101 of the Finance Act 2009 on such a penalty, the time when the relevant act or omission occurred;

(b) in relation to a penalty under any ... provision of this Act mentioned in subsection (2)(a) above, or to interest under section 101 of the Finance Act 2009 on such a penalty, the time when the relevant act or omission occurred; and

(i) a penalty under Schedule 56 to the Finance Act 2009 in respect of an amount falling within item 1, 3C, 12, 18 or 19 3C of the Table in paragraph 1 of that Schedule, ...

(ii) a penalty under that Schedule in respect of an amount falling within item 17, 23 or 24 of that Table so far as the tax falls within item 1, or

(iii) interest under section 101 of that Act on a penalty within sub-paragraph (i) or (ii),

the beginning of the penalty date as defined in paragraph 1(4) of that Schedule;

(d) in relation to—

(i) a penalty under Schedule 18 to the Finance Act 2017, or

(ii) interest under section 101 of the Finance Act 2009 on a penalty within sub-paragraph (i),

the end of the RTC period (within the meaning of Schedule 18 to the Finance Act 2017);

(e) in relation to—

(i) a penalty under Schedule 26 to the Finance Act 2021 (penalties for failure to pay tax), or

(ii) interest under section 101 of the Finance Act 2009 on a penalty within sub-paragraph (i),

the end of the specified date as defined in paragraph 1 of Schedule 26 to the Finance Act 2021;

and in paragraph (aa) and (b) above “the relevant act or omission” means the act or omission which caused the penalty to become payable.

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

Companies

Responsibility of company officers.

108

(1) Everything to be done by a company under the Taxes Acts shall be done by the company acting through the proper officer of the company or, except where a liquidator has been appointed for the company, through such other person as may for the time being have the express, implied or apparent authority of the company to act on its behalf for the purpose, and service on a company of any document under or in pursuance of the Taxes Acts may be effected by serving it on the proper officer.

This subsection is without prejudice to Part VIII of this Act (charges on non-residents) as it applies to corporation tax.

(2) Corporation tax or other tax chargeable under the Corporation Tax Acts on a company which is not a body corporate, or which is a body corporate not incorporated under any enactment forming part of the law of the United Kingdom, or by Charter, may, at any time after the tax becomes due, and without prejudice to any other method of recovery, be recovered from the proper officer of the company, and that officer may retain out of any money coming into his hands on behalf of the company sufficient sums to pay that tax, and, so far as he is not so reimbursed, shall be entitled to be indemnified by the company in respect of the liability so imposed on him.

(3) For the purposes of this section—

(a) the proper officer of a company which is a body corporate shall be the secretary or person acting as secretary of the company, except that if a liquidator or administrator has been appointed for the company the liquidator or, as the case may be, administrator shall be the proper officer,

(b) the proper officer of a company which is not a body corporate or for which there is no proper officer within paragraph (a) above, shall be the treasurer or the person acting as treasurer, of the company .

(4) For the purposes of subsection (3)(a), where two or more persons are appointed to act jointly or concurrently as the administrator of a company, the proper officer is—

(a) such one of them as is specified in a notice given to the Board by those persons for the purposes of this section, or

(b) where the Board is not so notified, such one or more of those persons as the Board may designate as the proper officer for those purposes.

Corporation tax on close company in connection with loans or benefits to participators etc.

109

(1) The provisions of sections 455 to 459 and 464A and 464B of CTA 2010 (charge of tax in connection with loans or benefits to participators etc.) directing that tax be assessed and recoverable as if it were an amount of corporation tax shall be taken as applying, subject to the provisions of the Taxes Acts, and to any necessary modifications, all enactments applying generally to corporation tax, including those relating to the assessing, collecting and receiving of corporation tax, those conferring or regulating a right of appeal and those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.

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

(3) For the purposes of section 87A of this Act as applied by subsection (1) above—

(a) the date when tax under section 455 of CTA 2010 became due and payable is that determined in accordance with subsection (3) of that section, and

(b) the date when tax under section 464A of CTA 2010 became due and payable is that determined in accordance with subsection (4) of that section.

(3A) If

(a) there is such a repayment of the whole or any part of a loan or advance as is referred to in subsection (2) of section 458 of CTA 2010, or

(b) there is such a release or writing off of the whole or any part of the debt in respect of a loan or advance as is referred to in that subsection,

interest under section 87A of this Act on so much of the tax under section 455 of CTA 2010 as is referable to the amount repaid, released or written off shall not be payable in respect of any period after the date on which the repayment was made or the release or writing off occurred.

(3B) If there is a payment which for the purposes of section 464B of CTA 2010 is a return payment in respect of a benefit conferred, interest under section 87A of this Act on so much of the tax under section 464A of CTA 2010 as is referable to the return payment is not payable in respect of any period after the date on which the return payment was made.

(4) Section 91 of this Act shall not apply in consequence of any discharge or repayment of tax under section 458 or 464B of CTA 2010.

(5) For the purposes of the said section 91, a relief from tax under sections 455 to 459 or 464A and 464B of CTA 2010 shall not be treated as affecting tax charged by any assessment unless the assessment is to tax under that section.

Residence of companies

109A

Chapter 3 of Part 2 of CTA 2009 (rules for determining residence of companies) applies for the purposes of this Act as it applies for the purposes of the Corporation Tax Acts.

Companies ceasing to be UK resident

Provisions for securing payment by company of outstanding tax

109B

(1) Each of conditions A to D must be met before a company ceases to be resident in the United Kingdom, subject to subsection (5A).

(2) Condition A is that the company gives to the Commissioners for Her Majesty's Revenue and Customs notice of its intention to cease to be resident in the United Kingdom.

(3) Condition B is that the notice specifies the time (“the migration time”) when the company intends to cease to be resident in the United Kingdom.

(4) Condition C is that the company gives to the Commissioners—

(a) a statement of the amount which, in its opinion, is the amount of the tax which is or will be payable by it in respect of periods beginning before the migration time, and

(b) particulars of the arrangements which it proposes to make for securing the payment of that tax (which may include a proposal to enter into a CT exit charge payment plan in accordance with Schedule 3ZB).

(5) Condition D is that—

(a) arrangements are made by the company for securing the payment of the tax which is or will be payable by it in respect of periods beginning before the migration time, and

(b) those arrangements, as made by the company, are approved for the purposes of this subsection by the Commissioners.

(5A) Condition D does not apply to the extent that payment of the tax is to be secured by the company entering into a CT exit charge payment plan in accordance with Schedule 3ZB.

(6) If any question arises as to the amount which, for the purposes of subsection (5), should be regarded as the amount of tax which is or will be payable by the company in respect of periods beginning before the migration time, that question is to be referred to the tribunal.

(7) A decision of the tribunal under subsection (6) is final, despite sections 11 and 13 of the TCEA 2007 (appeals from tribunal decisions).

(8) If any information furnished by the company for the purpose of securing the Commissioners' approval under subsection (5) does not fully and accurately disclose all facts and considerations material for the Commissioners' decision under that subsection, any resulting approval is void.

Penalty for company's failure to comply with section 109B

109C

If a company ceases to be resident in the United Kingdom at a time before each of conditions A to D in section 109B is met, the company is liable to a penalty not exceeding the amount of tax—

(a) which is or will be payable by it in respect of periods beginning before that time, and

(b) which has not been paid at that time.

Penalty for other persons if company fails to comply with section 109B

109D

(1) Subsection (5) applies if—

(a) condition E is met, and

(b) either of conditions F and G is met.

(2) Condition E is that in relation to a company (“the migrating company”) any person (“P”) does or is party to the doing of any act which to P's knowledge amounts to or results in, or forms part of a series of acts which together amount to or result in, or will amount to or result in, the migrating company ceasing to be resident in the United Kingdom at a time before each of conditions A to D in section 109B is met.

(3) Condition F is that P is—

(a) a director of the migrating company,

(b) a company which has control of the migrating company, or

(4) Condition G is that the act mentioned in subsection (2) is a direction or instruction given—

(a) to persons within subsection (3), but

(b) otherwise than by way of advice given by a person acting in a professional capacity.

(5) If this subsection applies, P is liable to a penalty not exceeding the amount of tax—

(a) which is or will be payable by the migrating company in respect of periods beginning before the time mentioned in subsection (2), and

(b) which has not been paid at that time.

(6) Subsections (7) and (8) apply for the purposes of any proceedings against a person within subsection (3) for the recovery of a penalty under subsection (5).

(7) It is to be presumed that the person was party to every act of the migrating company unless the person proves that it was done without the person's consent or connivance.

(8) It is to be presumed, unless the contrary is proved, that any early-migration act was to the person's knowledge an early-migration act.

(9) In subsection (8) “early-migration act” means an act which in fact amounted to or resulted in, or formed part of a series of acts which together amounted to or resulted in, or would amount to or result in, the migrating company ceasing to be resident in the United Kingdom at a time before each of conditions A to D in section 109B is met.

Liability of other persons for unpaid tax

109E

(1) This section applies if—

(a) a company (“the migrating company”) ceases to be resident in the United Kingdom at any time, and

(b) any tax which is payable by the company in respect of periods beginning before that time is not paid within 6 months from the time when it becomes payable.

(1A) The reference in subsection (1)(b) to the time when tax becomes payable is a reference to—

(a) in a case where a CT exit charge payment plan has been entered into in accordance with Schedule 3ZB in respect of the tax, the time when the tax becomes payable under the plan, and

(b) in any other case, the time when the tax becomes payable in accordance with section 59D or 59E.

(2) The Commissioners for Her Majesty's Revenue and Customs may, at any time before the end of the period of 3 years beginning with the relevant time, serve on any person within subsection (3) a notice—

(a) stating particulars of the tax payable, the amount remaining unpaid and the date when it became payable, and

(b) requiring that person to pay that amount within 30 days of the service of the notice.

(2A) In subsection (2) the “relevant time” means—

(a) in a case where a CT exit charge payment plan has been entered into in accordance with Schedule 3ZB in respect of the tax, the later of—

(i) the first day after the period of 12 months beginning immediately after the migration accounting period (as defined in Part 1 or 2 of Schedule 3ZB, as the case may be), and

(ii) the date on which the tax is payable under the plan, and

(b) in any other case, the time when the amount of the tax is finally determined.

(3) The persons within this subsection are—

(a) any company which is, or within the pre-migration year was, a member of the same group as the migrating company,

(b) any person who is, or within the pre-migration year was, a controlling director of the migrating company, and

(c) any person who is, or within the pre-migration year was, a controlling director of a company which has, or within the pre-migration year had, control over the migrating company.

(4) Any amount which a person is required to pay by a notice under this section may be recovered from the person as if it were tax due and duly demanded from the person.

(5) If a person (“P”) pays any amount which a notice under this section requires P to pay, P may recover the amount from the migrating company.

(6) A payment in pursuance of a notice under this section is not allowed as a deduction in calculating any income, profits or losses for any tax purposes.

(7) In this section—

“controlling director”, in relation to a company, means a director of the company who has control of the company,

“group” has the meaning which would be given by section 170 of the 1992 Act if in that section for references to 75 per cent subsidiaries there were substituted references to 51 per cent subsidiaries, and

“pre-migration year” means the period of 12 months ending with the time when the migrating company ceases to be resident in the United Kingdom.

Interpretation of sections 109B to 109E

109F

(1) In sections 109B to 109E, any reference to the tax payable by a company includes a reference to—

(a) any amount which the company is liable to pay under section 77C (territorial extension of charge to tax),

(b) any amount of tax which the company is liable to pay under regulations made under section 684 of ITEPA 2003 (PAYE),

(c) any amount which the company is liable to pay under sections 61 and 62(1)(a) of the Finance Act 2004 (sub-contractors in the construction industry),

(d) any income tax which the company is liable to pay in respect of payments within section 946 of ITA 2007 (collection of tax: deposit-takers, building societies and certain companies), and

(e) any amount representing income tax which the company is liable to pay under section 966 of ITA 2007 (entertainers and sportsmen).

(2) In sections 109B to 109E read in accordance with subsection (1), any reference to the tax payable by a company in respect of periods beginning before any particular time includes a reference to any interest—

(a) on the tax so payable, or

(b) on tax paid by the company in respect of such periods,

which the company is liable to pay in respect of periods beginning before or after that time.

(3) In sections 109B to 109E “director”, in relation to a company, is to be read in accordance with the following provisions—

(a) section 67(1) and (2) of ITEPA 2003, and

(b) section 452 of CTA 2010.

(4) In sections 109B to 109E, any reference to a person having control of a company is to be read in accordance with sections 450 and 451 of CTA 2010.

Valuation

Valuation of land: power of entry.

110

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Valuation of assets: power to inspect.

111

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Documents

Loss, destruction or damage to assessments, returns, etc.

112

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Taxes Management Act 1970

PART VII — PERSONS CHARGEABLE IN A REPRESENTATIVE CAPACITY, ETC.

Income Tax

Bodies of persons.

71

Trustees, guardians, etc., of incapacitated persons.

72

Further provision as to infants.

73

Personal representatives.

74

Receivers appointed by a court.

75

Protection for certain trustees, agents and receivers.

76

Capital gains tax

Application of Part VII to capital gains tax.

77

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

77A

PART 7A — Holders of licences under the Petroleum Act 1998

Licence-holders' liabilities for tax assessed on non-UK residents

Pre-conditions for serving secondary-liability notice

77B

Secondary-liability notices

77C

Payments under secondary-liability notices

77D

Exception for certain pre-1974 cases

77E

Exemption certificates

Issue, cancellation and effect of exemption certificates

77F

Liabilities for assessments made after exemption certificate cancelled

77G

Supplementary

Calculations under sections 77C(3) and 77G(7)

77H

Information

77I

Meaning of “related to a licence” as respects tax, or profits or gains

77J

Other definitions in Part 7A

77K

PART VIII — CHARGES ON NON-RESIDENTS

Income tax

Method of charging non-residents.

78

Profits from branch or agency.

79

Charge on percentage of turnover.

80

Taxation on basis of merchanting profit.

81

Savings.

82

Responsibilities and indemnification of persons in whose name a non-resident person is chargeable.

83

Capital gains tax

Gains from branch or agency.

84

Corporation tax

Application of Part VIII to corporation tax.

85

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

85A

PART IX — INTEREST ON OVERDUE TAX

Interest on overdue income tax and capital gains tax.

86

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

86A

Interest on overdue income tax deducted at source

87

Interest on overdue corporation tax etc.

87A

Interest on tax recovered to make good loss due to taxpayer’s fault.

88

Determinations under section 88.

88A

The prescribed rate of interest.