Taxes Management Act 1970

• (1) Where any assessment to tax, or any duplicate of assessment to tax, or any return or other document relating to tax, has been lost or destroyed, or been so defaced or damaged as to be illegible or otherwise useless, HMRC may, notwithstanding anything in any enactment to the contrary, do all such acts and things as they might have done, and all acts and things done under or in pursuance of this section shall be as valid and effectual for all purposes as they would have been, if the assessment or duplicate of assessment had not been made, or the return or other document had not been made or furnished or required to be made or furnished :

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

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

• (3) The references in subsection (1) above to assessments to tax include references to determinations of penalties; and in its application to such determinations the proviso to that subsection shall have effect with the appropriate modifications.

Form of returns and other documents.

113

• (1) Any returns under the Taxes Acts shall be in such form as the Board prescribe, and in prescribing income tax forms under this subsection the Board shall have regard to the desirability of securing, so far as may be possible, that no person shall be required to make more than one return annually of the sources of his income and the amounts derived therefrom.

• (1A) Any notice or direction requiring any return to be made under the Taxes Acts to an inspector or other officer of the Board may be issued or given in the name of that officer, or as the case may be in the name of the Board, by any officer of the Board, and so as to require the return to be made to the first-mentioned officer.

• (1B) Where the Board or an inspector or other officer of the Board have in accordance with section 29 of this Act or paragraph 41 of Schedule 18 to the Finance Act 1998, or any other provision of the Taxes Acts, decided to make an assessment to tax, and have taken all other decisions needed for arriving at the amount of the assessment, they may entrust to some other officer of the Board responsibility for completing the assessing procedure, whether by means involving the use of a computer or otherwise, including responsibility for serving notice of the assessment on the person liable for tax.

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

• (1D) Where an officer of the Board has decided to impose a penalty under section 100 of this Act and has taken all other decisions needed for arriving at the amount of the penalty, he may entrust to any other officer of the Board responsibility for completing the determination procedure, whether by means involving the use of a computer or otherwise, including responsibility for serving notice of the determination on the person liable to the penalty.

• (2) Any return or assessment or other document relating to chargeable gains or tax on capital gains may be combined with one relating to income or income tax.

• (3) Every assessment, determination of a penalty, duplicate, warrant, notice of assessment , of determination or of demand, or other document required to be used in assessing, charging, collecting and levying tax or determining a penalty shall be in accordance with the forms prescribed from time to time in that behalf by the Board, and a document in the form prescribed and supplied or approved by them shall be valid and effectual .

Want of form or errors not to invalidate assessments, etc.

114

• (1) An assessment or determination, warrant or other proceeding which purports to be made in pursuance of any provision of the Taxes Acts shall not be quashed, or deemed to be void or voidable, for want of form, or be affected by reason of a mistake, defect or omission therein, if the same is in substance and effect in conformity with or according to the intent and meaning of the Taxes Acts, and if the person or property charged or intended to be charged or affected thereby is designated therein according to common intent and understanding.

• (2) An assessment or determination shall not be impeached or affected—

• (a) by reason of a mistake therein as to—

• (i) the name or surname of a person liable, or

• (ii) the description of any profits or property, or

• (iii) the amount of the tax charged, or

• (b) by reason of any variance between the notice and the assessment or determination.

Delivery and service of documents.

115

• (1) A notice or form which is to be served under the Taxes Acts on a person may be either delivered to him or left at his usual or last known place of residence.

• (2) Any notice or other document to be given, sent, served or delivered under the Taxes Acts may be served by post, and, if to be given, sent, served or delivered to or on any person by HMRC may be so served addressed to that person—

• (a) at his usual or last known place of residence, or his place of business or employment, or

• (b) in the case of a company, at any other prescribed place, and in the case of a liquidator of a company, at his address for the purposes of the liquidation or any other prescribed place.

• (3) In subsection (2) above “prescribed” means prescribed by regulations made by the Board, and the power of making regulations for the purposes of that subsection shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

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

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

Electronic lodgement of tax returns, etc.

115A

Schedule 3A to this Act (which makes provision with respect to the electronic lodgement of tax returns and documents required in connection with tax returns) shall have effect.

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

116

Northern Ireland

Action of ejectment in Northern Ireland.

117

Unless other provision is made in that behalf by any enactment, an action of ejectment in Northern Ireland for non-payment of rent shall not be defeated on the ground that the person liable to pay the rent is entitled under the Income Tax Acts to a deduction which would reduce the amount due by him below a year’s rent.

Interpretation

Interpretation.

118

• (1) In this Act, unless the context otherwise requires—

• “Act” includes an Act of the Parliament of Northern Ireland and “enactment” shall be construed accordingly,

• “the Board” means the Commissioners of Inland Revenue,

• “body of persons” means any body politic, corporate or collegiate, and any company, fraternity, fellowship and society of persons, whether corporate or not corporate,

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “chargeable gain” has the same meaning as in the 1992 Act,

• “chargeable period” means a year of assessment or a company’s accounting period,

• “collector” means any collector of taxes,

• “company” has the meaning given by section 1121(1) of CTA 2010 (with section 617 of that Act) ... ,

• “CTA 2009” means the Corporation Tax Act 2009,

• “CTA 2010” means the Corporation Tax Act 2010,

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “HMRC” means Her Majesty’s Revenue and Customs;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “inspector” means any inspector of taxes,

• “ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003,

• “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005,

• “ITA 2007” means the Income Tax Act 2007,

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “partner” is to be construed in accordance with section 12AA(10B) of this Act;

• “partnership return” has the meaning given by section 12AA(10A) of this Act,

• “the principal Act” means the Income and Corporation Taxes Act 1988,

• “the relevant trustees”, in relation to a settlement, shall be construed in accordance with section 7(9) of this Act.

• “return” includes any statement or declaration under the Taxes Acts,

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “successor”, in relation to a person who is required to make and deliver, or has made and delivered, a partnership return, and “predecessor” and “successor”, in relation to the successor of such a person, shall be construed in accordance with section 12AA(11) of this Act;

• “tax”, where neither income tax nor capital gains tax nor corporation tax nor development land tax is specified, means any of those taxes ... ,

• “the Taxes Acts” means this Act and—the Tax Acts ... andthe Taxation of Chargeable Gains Act 1992 and all other enactments relating to capital gains tax,. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “the 1992 Act ” means the Taxation of Chargeable Gains Act 1992

• “TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010,

• “the TCEA 2007” means the Tribunals, Courts and Enforcement Act 2007;

• “trade” includes every trade, manufacture, adventure or concern in the nature of trade .

• “the tribunal” is to be read in accordance with section 47C;

• (2) For the purposes of this Act, a person shall be deemed not to have failed to do anything required to be done within a limited time if he did it within such further time, if any, as the Board or the tribunal or officer concerned may have allowed; and where a person had a reasonable excuse for not doing anything required to be done he shall be deemed not to have failed to do it unless the excuse ceased and, after the excuse ceased, he shall be deemed not to have failed to do it if he did it without unreasonable delay after the excuse had ceased:

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

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

• (4) For the purposes of this Act, the amount of tax covered by any assessment shall not be deemed to be finally determined until that assessment can no longer be varied, whether by the tribunal on an appeal notified to it or by the order of any court.

• (5) For the purposes of this Act a loss of tax or a situation is brought about carelessly by a person if the person fails to take reasonable care to avoid bringing about that loss or situation.

• (6) Where—

• (a) information is provided to Her Majesty's Revenue and Customs,

• (b) the person who provided the information, or the person on whose behalf the information was provided, discovers some time later that the information was inaccurate, and

• (c) that person fails to take reasonable steps to inform Her Majesty's Revenue and Customs,

any loss of tax or situation brought about by the inaccuracy shall be treated for the purposes of this Act as having been brought about carelessly by that person.

• (7) In this Act references to a loss of tax or a situation brought about deliberately by a person include a loss of tax or a situation that arises as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.

PART XII — GENERAL

Commencement and construction.

119

• (1) This Act shall come into force for all purposes on 6th April 1970 to the exclusion of the corresponding enactments repealed by the principal Act.

• (2) This Act, and the repeals made by the principal Act, have effect subject to Schedule 4 to this Act.

• (3) This Act, so far as it relates to income tax or corporation tax, shall be construed as one with the principal Act.

• (4) This Act, so far as it relates to chargeable gains, shall be construed as one with the 1992 Act and ITEPA 2003.

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

Short title.

120

This Act may be cited as the Taxes Management Act 1970.

SCHEDULE 1

PART I — GENERAL AND SPECIAL COMMISSIONERS AND OTHERS

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

PART II — COMMISSIONERS OF INLAND REVENUE

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

PART III — INSPECTORS, COLLECTORS AND OTHER OFFICERS

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

SCHEDULE A1

PART 1 — Introduction

Overview

A1

• (1) This Schedule confers powers on the Commissioners to make regulations requiring or authorising certain persons and certain partnerships (“relevant persons” and “relevant partnerships”) to take certain steps relating to digital reporting and record-keeping.

• (2) This Part of this Schedule contains introductory provision, in particular explaining what is meant by a “relevant person” and a “relevant partnership”.

• (3) Part 2 of this Schedule contains the powers to make regulations and sets out the penalties for non-compliance with certain obligations which may be imposed by the regulations.

• (4) Part 3 of this Schedule contains provision about exempting relevant persons or relevant partnerships from requirements imposed by the regulations.

• (5) Part 4 of this Schedule contains supplementary provision.

Interpretation: relevant persons

1

• (1) For the purposes of this Schedule a person is a “relevant person” if the person is carrying on or has carried on a relevant activity.

• (2) A “relevant activity”, in relation to a person, means any activity which may give rise to profits or other income for which the person would be liable to income tax chargeable under Part 2 or Part 3 of ITTOIA 2005 if the person were UK resident.

• (3) But the following activities are not relevant activities—

• (a) any activity carried on in partnership;

• (b) any activity carried on by the trustees of a charitable trust or the trustees of an exempt unauthorised unit trust (within the meaning of the Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I. 2013/2819));

• (c) the underwriting business of a member of Lloyd's (within the meaning of section 184 of the Finance Act 1993);

• (d) holding shares in respect of which a distribution may be made which is chargeable to income tax under Part 3 of ITTOIA 2005 by virtue of section 548(6) of CTA 2010 (distributions to shareholders in real estate investment trusts);

• (e) participating in an open-ended investment company which may make distributions chargeable to income tax under Part 3 of ITTOIA 2005 by virtue of regulation 69Z18 of the Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964) (property income distributions).

Interpretation: relevant partnerships

2

• (1) For the purposes of this Schedule a partnership is a “relevant partnership” if one or more of the partners is an individual, unless all of the activities of the partnership which may give rise to profits or income are activities falling within sub-paragraph (2).

• (2) The following activities fall within this sub-paragraph—

• (a) the underwriting business of a Lloyd's partnership (as defined in section 184(1) of the Finance Act 1993);

• (b) holding shares in respect of which a distribution may be made which is chargeable to income tax under Part 3 of ITTOIA 2005 by virtue of section 548(6) of CTA 2010 (distributions to shareholders in real estate investment trusts);

• (c) participating in an open-ended investment company which may make distributions chargeable to income tax under Part 3 of ITTOIA 2005 by virtue of regulation 69Z18 of the Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964) (property income distributions).

...

3

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

4

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

Nominated partners

5

• (1) Requirements imposed by regulations under this Schedule on a partnership are to be met by a nominated partner.

• (2) A “nominated partner” is a partner nominated for the purposes of this Schedule—

• (a) by the partners, or

• (b) by the Commissioners.

• (3) A nomination, or a revocation of a nomination, by the partners does not have effect until notice of the revocation or nomination is given to HMRC.

• (4) The Commissioners may by regulations make provision about nominations and the revocation of nominations, including provision about the circumstances in which the Commissioners may nominate a partner.

• (5) In this Act references to a nominated partner are to a partner nominated for the purposes of this Schedule.

PART 2 — Digital reporting and record-keeping

Interpretation

6

In this Part of this Schedule “business”—

• (a) in relation to a relevant person (see paragraph 1), means the relevant activity or activities that the person is carrying on or has carried on, and

• (b) in relation to a relevant partnership (see paragraph 2), means the activity or activities of the partnership that may give rise to profits or income and do not fall within paragraph 2(2).

Periodic updates

7

• (1) The Commissioners may by regulations require a relevant person or relevant partnership to provide to HMRC, by electronic communications, specified information about the business of the person or partnership.

• (2) The information which may be specified includes any information (“financial information”) relevant to calculating profits, losses or income of the business, including information about receipts and expenses.

• (3) The regulations may require information to be provided at or for specified intervals, times or periods.

• (4) The regulations may not require financial information about the business to be provided more often than once every 3 months.

End of period statement

8

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

Personal or trustee return etc.

9

The Commissioners may by regulations require or authorise the use of electronic communications for the delivery by a relevant person of —

• (a) a return required by section 8(1)(a) or 8A(1)(a) of this Act;

• (b) any accounts, statements and documents required by section 8(1)(b) or 8A(1)(b) of this Act;

• (c) a notice amending a return under section 9ZA of this Act.

Partnership return

10

• (1) The Commissioners may by regulations require a relevant partnership to provide to HMRC, by electronic communications, a return containing specified information about the partnership's business in relation to each tax year.

• (2) The information which may be specified includes any information which is or may be required to be included in a section 12AA partnership return, including information in respect of any partners within the charge to corporation tax.

• (3) In particular, the information which may be specified includes the information required to be included in a section 12AA partnership return by section 12AB (partnership statements).

• (4) Regulations under this paragraph may require the return to include a declaration to the effect that the information included in it is correct and complete.

• (5) A Schedule A1 partnership return for a tax year must be provided to HMRC on or before 31 January following the tax year.

• (6) In this Act—

• (a) references to a Schedule A1 partnership return are to a return required by regulations under this paragraph, and

• (b) references to a partnership statement, in relation to a Schedule A1 partnership return, are to information required to be included in the return by virtue of sub-paragraph (3).

• (7) In the Taxes Acts, unless the contrary intention appears, a reference (whether general or specific) to a return under, or a return required under, this Act includes a reference to a Schedule A1 partnership return.

Record-keeping

11

• (1) The Commissioners may by regulations require a relevant person or relevant partnership to—

• (a) keep specified records relating to the business in electronic form, and

• (b) preserve those records in electronic form for a specified period.

• (2) The records which may be specified are any records the Commissioners consider relevant to ascertaining information required to be provided by regulations under this Part of this Schedule.

• (3) A requirement imposed by regulations under this paragraph is in addition to, and not in place of, any other requirement that the person or partnership keep and preserve records (or keep and preserve records in a particular form).

• (4) Paragraph 5(1) (requirements imposed on partnership to be met by nominated partner) does not apply to requirements imposed by regulations under this paragraph.

12

• (1) This paragraph applies where requirements imposed by regulations under paragraph 11 for any period are not complied with.

• (2) The person, or in the case of a partnership each relevant partner, is liable for a penalty.

• (3) “Relevant partner” means any person who was a partner in the partnership at any time during the period in question.

• (4) The amount of the penalty must not exceed £3,000.

• (5) A person or relevant partner is not liable to a penalty under this paragraph in relation to a period if the person or relevant partner is liable to a penalty under section 12B(5) in relation to that period.

Electronic communications and records: supplementary powers

13

• (1) This paragraph applies to regulations under paragraphs 7 ..., 9, 10 and 11.

• (2) The regulations may (amongst other things) make provision—

• (za) as to the means of electronic communication to be used for providing information;

• (a) as to the electronic form to be taken by information provided and records kept or preserved,

• (b) requiring persons to prepare and keep records of information provided by means of electronic communications,

• (c) for the production of the contents of records kept or preserved in accordance with regulations under this Part of this Schedule,

• (d) as to conditions that must be complied with in connection with the use of electronic communications or the keeping or preservation of electronic records,

• (e) for treating information as not having been provided or records as not having been kept or preserved unless conditions are complied with,

• (f) for determining the time at which and person by whom information is taken to have been delivered, and

• (g) for authenticating information or records.

• (3) The regulations may also make provision (which may include provision for the application of conclusive or other presumptions) about the manner of proving for any purpose—

• (a) whether any use of electronic communications is to be taken as having resulted in the provision of information,

• (b) the time at which information was provided,

• (c) the person by whom information was provided,

• (d) the contents of any information provided,

• (e) the contents of any records, and

• (f) any other matter for which provision may be made by the regulations.

• (4) The regulations may allow or require use to be made of intermediaries in connection with—

• (a) the provision of information by means of electronic communications, and

• (b) the authentication or security of anything transmitted by any such means.

• (5) The regulations may—

• (a) allow any authorisation or requirement for which the regulations may provide to be given by means of a specific or general direction given by the Commissioners, and

• (b) provide that the conditions of an authorisation or requirement are to be taken to be satisfied only where the Commissioners are satisfied as to specified matters.

• (6) The regulations may provide—

• (a) that information provided must meet standards of accuracy and completeness set by specific or general directions given by the Commissioners, and

• (b) that failure to meet those standards may be treated as a failure to provide the information, or as a failure to comply with the requirements of the regulations.

PART 3 — Exemptions

Exemption for the digitally excluded

14

• (1) The Commissioners must by regulations make provision—

• (a) for a person to be exempt from requirements imposed by regulations under paragraphs 7, 9 and 11 if the Commissioners are satisfied that the person is digitally excluded, and

• (b) for a partnership to be exempt from requirements imposed by regulations under paragraphs 7, 10 and 11 if the Commissioners are satisfied that the partnership is digitally excluded.

• (1A) The regulations may provide that where the Commissioners are satisfied that a person or partnership is digitally excluded, prior requirements imposed on the person or partnership are to be treated as never having been imposed.

• (1B) In sub-paragraph (1A) “prior requirements” means requirements imposed by regulations under paragraphs 7, 9 and 11 which are required to be complied with before the date on which the Commissioners are satisfied that the person or partnership is digitally excluded.

• (2) A person is digitally excluded if the digital exclusion condition is met in relation to the person.

• (3) A partnership is digitally excluded if the digital exclusion condition is met in relation to each partner.

• (4) The digital exclusion condition is met in relation to a person or partner if—

• (a) the person or partner is a practising member of a religious society or order whose beliefs are incompatible with using electronic communications or keeping electronic records, or

• (b) for any reason (including age, disability or location) it is not reasonably practicable for the person or partner to use electronic communications or to keep electronic records.

Further exemptions

15

• (1) The Commissioners may by regulations make provision for further exemptions , including exemptions the conditions of which are to be taken to be satisfied only where the Commissioners are satisfied as to specified matters.

• (2) The exemptions for which provision may be made include exemptions based on income or other financial criteria.

• (3) The regulations may provide that where the conditions of a further exemption are met by a person or partnership, prior requirements imposed on the person or partnership are to be treated as never having been imposed.

• (4) In sub-paragraph (3) “prior requirements”, in relation to a further exemption, means requirements imposed by regulations under paragraphs 7, 9 and 11 which are required to be complied with before the date on which the conditions of the further exemption are met.

• (5) The regulations may allow any exemption for which the regulations may provide to be given by means of a specific or general direction given by the Commissioners.

PART 4 — Supplementary provision

Appeals

16

• (1) An appeal may be brought against any decision made by the Commissioners, or by an officer of Revenue and Customs, under regulations under this Schedule.

• (2) Notice of an appeal under this paragraph must be given to HMRC within 30 days after the day on which notice of the decision is given.

• (3) The notice of appeal must—

• (a) be in writing, and

• (b) specify the grounds of appeal.

Interpretation

17

• (1) Any power in this Schedule to require the provision of information includes power to require the provision of accounts, statements and documents relating to that information.

• (2) Where a partnership (“the reporting partnership”) includes a partner which is itself a partnership, references in this Schedule to a partner include an indirect partner in the reporting partnership.

Section 12AA(1C) (meaning of “indirect partner”) applies for the purposes of this sub-paragraph.

Regulations

18

• (1) Regulations under this Schedule may—

• (a) make provision which applies generally or only for specified cases or purposes;

• (b) make different provision for different cases or purposes;

• (c) include incidental, supplemental, consequential, saving, transitional or transitory provision;

• (d) make provision for matters to be specified by the Commissioners in accordance with the regulations.

• (2) Sub-paragraph (1)(d) does not apply to any interval, time or period specified by virtue of paragraph 7(3) (which may be specified only by the regulations).

• (3) Regulations under this Schedule may make provision for a relevant person or relevant partnership, but who would not otherwise be subject to a requirement imposed by the regulations, to elect to be subject to that requirement.

• (4) Regulations under this Schedule may provide that, for the purposes of any provision of this Schedule or of the regulations, a change in the accounting date of a business is to be disregarded (and its period of account determined accordingly).

• (5) The power to make regulations under this Schedule is exercisable by statutory instrument.

• (6) A statutory instrument containing regulations under this Schedule is subject to annulment in pursuance of a resolution of the House of Commons.

SCHEDULE 1AA

Introduction

1

The provisions of this Schedule supplement section 20BA.

Authorised officer of the Board

2

• (1) In section 20BA(1) an “authorised officer of the Board” means an officer of the Board authorised by the Board for the purposes of that section.

• (2) The Board may make provision by regulations as to—

• (a) the procedures for approving in any particular case the decision to apply for an order under that section, and

• (b) the descriptions of officer by whom such approval may be given.

Notice of application for order

3

• (1) A person is entitled—

• (a) to notice of the intention to apply for an order against him under section 20BA, and

• (b) to appear and be heard at the hearing of the application,

unless the appropriate judicial authority is satisfied that this would seriously prejudice the investigation of the offence.

• (2) The Board may make provision by regulations as to the notice to be given, the contents of the notice and the manner of giving it.

Obligations of person given notice of application

4

• (1) A person who has been given notice of intention to apply for an order under section 20BA(4) shall not—

• (a) conceal, destroy, alter or dispose of any document to which the application relates, or

• (b) disclose to any other person information or any other matter likely to prejudice the investigation of the offence to which the application relates.

This is subject to the following qualifications.

• (2) Sub-paragraph (1)(a) does not prevent anything being done—

• (a) with the leave of the appropriate judicial authority,

• (b) with the written permission of an officer of the Board,

• (c) after the application has been dismissed or abandoned, or

• (d) after any order made on the application has been complied with.

• (3) Sub-paragraph (1)(b) does not prevent a professional legal adviser from disclosing any information or other matter—

• (a) to, or to a representative of, a client of his in connection with the giving by the adviser of legal advice to the client; or

• (b) to any person—

• (i) in contemplation of, or in connection with, legal proceedings; and

• (ii) for the purpose of those proceedings.

This sub-paragraph does not apply in relation to any information or other matter which is disclosed with a view to furthering a criminal purpose.

• (4) A person who fails to comply with the obligation in sub-paragraph (1)(a) or (b) above may be dealt with as if he had failed to comply with an order under section 20BA.

Exception of items subject to legal privilege

5

• (1) Section 20BA does not apply to items subject to legal privilege.

• (2) For this purpose “items subject to legal privilege” means—

• (a) communications between a professional legal adviser and his client or any person representing his client made in connection with the giving of legal advice to the client;

• (b) communications between a professional legal adviser and his client or any person representing his client or between such an adviser or his client or any such representative and any other person made in connection with or in contemplation of legal proceedings and for the purposes of such proceedings; and

• (c) items enclosed with or referred to in such communications and made—

• (i) in connection with the giving of legal advice; or

• (ii) in connection with or in contemplation of legal proceedings and for the purposes of such proceedings,

when they are in the possession of a person who is entitled to possession of them.

• (3) Items held with the intention of furthering a criminal purpose are not subject to legal privilege.

Resolution of disputes as to legal privilege

6

• (1) The Board may make provision by regulations for the resolution of disputes as to whether a document, or part of a document, is an item subject to legal privilege.

• (2) The regulations may, in particular, make provision as to—

• (a) the custody of the document whilst its status is being decided;

• (b) the appointment of an independent, legally qualified person to decide the matter;

• (c) the procedures to be followed; and

• (d) who is to meet the costs of the proceedings.

Complying with an order

7

• (1) The Board may make provision by regulations as to how a person is to comply with an order under section 20BA.

• (2) The regulations may, in particular, make provision as to—

• (a) the officer of the Board to whom the documents are to be produced,

• (b) the address to which the documents are to be taken or sent, and

• (c) the circumstances in which sending the documents by post complies with the order.

• (3) Where an order under section 20BA applies to a document in electronic or magnetic form, the order shall be taken to require the person to deliver the information recorded in the document in a form in which it is visible and legible.

Procedure where documents are delivered

8

• (1) The provisions of section 20CC(3) to (9) apply in relation to a document delivered to an officer of the Board in accordance with an order under section 20BA as they apply to a thing removed by an officer of the Board as mentioned in subsection (1) of section 20CC.

• (2) In section 20CC(9) as applied by sub-paragraph (1) above the reference to the warrant concerned shall be read as a reference to the order concerned.

Sanction for failure to comply with order

9

• (1) If a person fails to comply with an order made under section 20BA, he may be dealt with as if he had committed a contempt of the court.

• (2) For this purpose “the court” means—

• (a) in relation to an order made by a Circuit judge or a District Judge (Magistrates' Courts), the Crown Court;

• (b) in relation to an order made by a sheriff, a sheriff court;

• (c) in relation to an order made by a county court judge, a county court in Northern Ireland.

Notice of order etc.

10

The Board may make provision by regulations as to the circumstances in which notice of an order under section 20BA, or of an application for such an order, is to be treated as having been given.

General provisions about regulations

11

Regulations under this Schedule—

• (a) may contain such incidental, supplementary and transitional provision as appears to the Board to be appropriate, and

• (b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

SCHEDULE 1AB

Claim for relief for overpaid tax etc

1

• (1) This paragraph applies where—

• (a) a person has paid an amount by way of income tax or capital gains tax but the person believes that the tax was not due, or

• (b) a person has been assessed as liable to pay an amount by way of income tax or capital gains tax, or there has been a determination or direction to that effect, but the person believes that the tax is not due.

• (2) The person may make a claim to the Commissioners for repayment or discharge of the amount.

• (3) Paragraph 2 makes provision about cases in which the Commissioners are not liable to give effect to a claim under this Schedule.

• (4) Paragraphs 3 to 7 (and sections 42 to 43C and Schedule 1A) make further provision about making and giving effect to claims under this Schedule.

• (5) Paragraph 8 makes provision about the application of this Schedule to amounts paid under contract settlements.

• (6) The Commissioners are not liable to give relief in respect of a case described in sub-paragraph (1)(a) or (b) except as provided—

• (a) by this Schedule and Schedule 1A (following a claim under this paragraph), or

• (b) by or under another provision of the Income Tax Acts or an enactment relating to the taxation of capital gains.

• (7) For the purposes of this Schedule an amount paid by one person on behalf of another is treated as paid by the other person.

Cases in which Commissioners not liable to give effect to claim

2

• (1) The Commissioners are not liable to give effect to a claim under this Schedule if or to the extent that the claim falls within a case described in this paragraph (see also paragraphs 3A and 4(5)).

• (2) Case A is where the amount paid, or liable to be paid, is excessive by reason of—

• (a) a mistake in a claim, election or notice,

• (b) a mistake consisting of making or giving, or failing to make or give, a claim, election or notice,

• (c) a mistake in allocating expenditure to a pool for the purposes of the Capital Allowances Act or a mistake consisting of making, or failing to make, such an allocation, or

• (d) a mistake in bringing a disposal value into account for the purposes of that Act or a mistake consisting of bringing, or failing to bring, such a value into account.

• (3) Case B is where the claimant is or will be able to seek relief by taking other steps under the Income Tax Acts or an enactment relating to the taxation of capital gains.

• (4) Case C is where the claimant—

• (a) could have sought relief by taking such steps within a period that has now expired, and

• (b) knew, or ought reasonably to have known, before the end of that period that such relief was available.

• (5) Case D is where the claim is made on grounds that—

• (a) have been put to a court or tribunal in the course of an appeal by the claimant relating to the amount paid or liable to be paid, or

• (b) have been put to Her Majesty's Revenue and Customs in the course of an appeal by the claimant relating to that amount that is treated as having been determined by a tribunal (by virtue of section 54 (settling of appeals by agreement)).

• (6) Case E is where the claimant knew, or ought reasonably to have known, of the grounds for the claim before the latest of the following—

• (a) the date on which an appeal by the claimant relating to the amount paid, or liable to be paid, in the course of which the ground could have been put forward (a “relevant appeal”) was determined by a court or tribunal (or is treated as having been so determined),

• (b) the date on which the claimant withdrew a relevant appeal to a court or tribunal, and

• (c) the end of the period in which the claimant was entitled to make a relevant appeal to a court or tribunal.

• (7) Case F is where the amount in question was paid or is liable to be paid—

• (a) in consequence of proceedings enforcing the payment of that amount brought against the claimant by Her Majesty's Revenue and Customs, or

• (b) in accordance with an agreement between the claimant and Her Majesty's Revenue and Customs settling such proceedings.

• (8) Case G is where—

• (a) the amount paid, or liable to be paid, is excessive by reason of a mistake in calculating the claimant's liability to income tax or capital gains tax (other than a mistake in a PAYE assessment or PAYE calculation), and

• (b) liability was calculated in accordance with the practice generally prevailing at the time.

• (9) Case H is where—

• (a) the amount paid, or liable to be paid, is excessive by reason of a mistake in a PAYE assessment or PAYE calculation, and

• (b) the assessment or calculation was made in accordance with the practice generally prevailing at the end of the period of 12 months following the tax year for which the assessment or calculation was made.

• (9A) Cases G and H do not apply where the amount paid, or liable to be paid, is tax which has been charged contrary to EU law.

• (9B) For the purposes of sub-paragraph (9A), an amount of tax is charged contrary to EU law if, in the circumstances in question, the charge to tax is contrary to—

• (a) the provisions relating to the free movement of goods, persons, services and capital in Titles II and IV of Part 3 of the Treaty on the Functioning of the European Union, or

• (b) the provisions of any subsequent treaty replacing the provisions mentioned in paragraph (a).

• (10) For the purposes of Cases G and H—

• (a) “PAYE assessment” means an assessment on the claimant made in accordance with section 709 of ITEPA 2003 (assessment in connection with PAYE deductions), and

• (b) “PAYE calculation” means a calculation of the amount of a deduction or repayment made or to be made under PAYE regulations in respect of tax estimated to be payable by the claimant.

Making a claim

3

• (1) A claim under this Schedule may not be made more than 4 years after the end of the relevant tax year.

• (2) In relation to a claim made in reliance on paragraph 1(1)(a), the relevant tax year is—

• (a) where the amount paid, or liable to be paid, is excessive by reason of a mistake in a return or returns under section 8, 8A or 12AA of this Act, the tax year to which the return (or, if more than one, the first return) relates, and

• (b) otherwise, the tax year in respect of which the payment was made.

• (3) In relation to a claim made in reliance on paragraph 1(1)(b), the relevant tax year is—

• (a) where the amount liable to be paid is excessive by reason of a mistake in a return or returns under section 8, 8A or 12AA, the tax year to which the return (or, if more than one, the first return) relates, and

• (b) otherwise, the tax year to which the assessment, determination or direction relates.

• (4) A claim under this Schedule may not be made by being included in a return under section 8, 8A or 12AA of this Act.

• (5) Sub-paragraph (1) is subject to paragraph 3A.

Determinations under section 28C: special rules

3A

• (1) This paragraph applies where—

• (a) a determination has been made under section 28C of an amount that a person is liable to pay by way of income tax or capital gains tax, but the person believes the tax is not due or, if it has been paid, was not due,

• (b) relief would be available under this Schedule but for the fact that—

• (i) the claim falls within Case C (see paragraph 2(4)),

• (ii) the claim falls within Case F(a) (see paragraph 2(7)(a)), or

• (iii) more than 4 years have elapsed since the end of the relevant tax year (see paragraph 3(1)), and

• (c) if the claim falls within Case F(a), the person was neither present nor legally represented during the enforcement proceedings in question.

• (2) A claim under this Schedule for repayment or discharge of the amount may be made, and effect given to it, despite paragraph 2(4), paragraph 2(7)(a) or paragraph 3(1), as the case may be.

• (3) But the Commissioners are not liable to give effect to a claim made in reliance on this paragraph unless conditions A, B and C are met.

• (4) Condition A is that in the opinion of the Commissioners it would be unconscionable for the Commissioners to seek to recover the amount (or to withhold repayment of it, if it has already been paid).

• (5) Condition B is that the person’s affairs (as respects matters concerning the Commissioners) are otherwise up to date or arrangements have been put in place, to the satisfaction of the Commissioners, to bring them up to date so far as possible.

• (6) Condition C is that either—

• (a) the person has not relied on this paragraph on a previous occasion (whether in respect of the same or a different determination or tax), or

• (b) the person has done so, but in the exceptional circumstances of the case should be allowed to do so again on the present occasion.

• (7) For the purposes of sub-paragraph (6)—

• (a) a person has relied on this paragraph on a previous occasion if the person has made a claim (or a composite set of claims involving one or more determinations, taxes and tax years) in reliance on this paragraph on a previous occasion, and

• (b) it does not matter whether that claim (or set of claims) succeeded.

• (8) A claim made in reliance on this paragraph must include (in addition to anything required by Schedule 1A) such information and documentation as is reasonably required for the purpose of determining whether conditions A, B and C are met.

The claimant: one person accountable for amounts payable by another etc

4

• (1) Sub-paragraph (2) applies where, under a relevant enactment, a person (“P”) is accountable to the Commissioners for—

• (a) an amount representing income tax or capital gains tax that is or is estimated to be payable by another person (“T”), or

• (b) any other amount that, under a relevant enactment, has been or is to be set off against a liability of T.

• (2) A claim under this Schedule in respect of the amount may be made only by T.

• (3) Sub-paragraph (4) applies where—

• (a) a person (“P”) has paid an amount described in sub-paragraph (1)(a) or (b) in the belief that P was accountable to the Commissioners for the amount under a relevant enactment, but

• (b) P was not so accountable.

• (4) A claim under this Schedule in respect of the amount may be made only by P.

• (5) The Commissioners are not liable to give effect to a claim under sub-paragraph (4) if or to the extent that the amount has been repaid to T or set against amounts payable to the Commissioners by T.

• (6) “Relevant enactment” means—

• (a) PAYE regulations,

• (b) Chapter 3 of Part 3 of the Finance Act 2004 or regulations under that Chapter (construction industry scheme), or

• (c) any other provision of or made under the Taxes Acts.

The claimant: partnerships

5

• (1) This paragraph applies where—

• (a) a trade, profession or business is carried on by two or more persons in partnership,

• (b) an amount is paid, or liable to be paid, by one or more of those persons in accordance with a self-assessment, and

• (c) the amount is excessive by reason of a mistake in a partnership return.

• (2) A claim under this Schedule in respect of the amount—

• (a) may be made by the relevant partner nominated to make the claim by all of the relevant partners, and

• (b) may not be made by any other person.

• (3) In relation to such a claim, references in this Schedule to the claimant are to any of the relevant partners.

• (4) “Relevant partner” means—

• (a) a person who was a partner in the partnership at any time during the period in respect of which the partnership return was made, or

• (b) the personal representative of such a person.

Assessment of claimant in connection with claim

6

• (1) This paragraph applies where—

• (a) a claim is made under this Schedule,

• (b) the grounds for giving effect to the claim also provide grounds for a discovery assessment or determination on the claimant in respect of any chargeable period, and

• (c) such an assessment or determination could be made but for a relevant restriction.

• (2) “Discovery assessment or determination” means—

• (a) an assessment under section 29(1), or

• (b) a discovery assessment or discovery determination under Schedule 18 to the Finance Act 1998 (company tax return etc).

• (3) The following are relevant restrictions—

• (a) the conditions in section 29(3) to (5),

• (b) the restrictions in paragraphs 42 to 45 of Schedule 18 to the Finance Act 1998, and

• (c) the expiry of a time limit for making a discovery assessment or determination.

• (4) Where this paragraph applies—

• (a) the relevant restrictions are to be disregarded, and

• (b) the discovery assessment or determination is not out of time if it is made before the final determination of the claim.

Amendment of partnership return etc in connection with claim

7

• (1) This paragraph applies where—

• (a) a claim is made under this Schedule,

• (b) the claimant is one of two or more persons carrying on a trade, profession or business in partnership,

• (c) the grounds for giving effect to the claim also provide grounds for amending, under section 30B(1) (discovery of loss of tax from partnership), a return made by the partnership or any of the partners in respect of any period, and

• (d) such an amendment could be made but for a relevant restriction.

• (2) The following are relevant restrictions—

• (a) the conditions in section 30B(4) to (6), and

• (b) the expiry of a time limit for making an assessment under that section.

• (3) Where this paragraph applies—

• (a) the relevant conditions are to be disregarded, and

• (b) the amendment is not out of time if it is made before the final determination of the claim.

Contract settlements

8

• (1) In paragraph 1(1)(a) the reference to an amount paid by way of income tax or capital gains tax includes an amount paid under a contract settlement in connection with income tax or capital gains tax believed to be due from any person.

• (2) Sub-paragraphs (3) to (6) apply if the person who paid the amount under the contract settlement (“the payer”) and the person from whom the tax was due (“the taxpayer”) are not the same person.

• (3) In relation to a claim under this Schedule in respect of that amount—

• (a) the references to the claimant in paragraph 2(5) to (7) (Cases D, E and F) have effect as if they included the taxpayer,

• (b) the references to the claimant in paragraph 2(8) and (10) (Cases G and H) have effect as if they were references to the taxpayer,

• (c) the references to the claimant in paragraphs 6(1)(b) and 7(1)(b) have effect as if they were references to the taxpayer, and

• (d) references to tax in Schedule 1A (as it applies to a claim under this Schedule) include such an amount.

• (4) Sub-paragraph (5) applies where the grounds for giving effect to a claim by the payer in respect of the amount also provide grounds for a discovery assessment or determination on the taxpayer in respect of any chargeable period.

• (5) The Commissioners may set any amount repayable to the payer by virtue of the claim against any amount payable by the taxpayer by virtue of the assessment or determination.

• (6) The obligations of the Commissioners and the taxpayer are discharged to the extent of any set-off under sub-paragraph (5).

• (7) In this paragraph—

• “contract settlement” means an agreement made in connection with any person's liability to make a payment to the Commissioners under or by virtue of an enactment;

• “discovery assessment or determination” has the same meaning as in paragraph 6.

Interpretation

9

• (1) In this Schedule “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs.

• (2) For the purposes of this Schedule a claim is not finally determined until it, or the amount to which it relates, can no longer be varied (whether on appeal or otherwise).

SCHEDULE 1A

Preliminary

1

In this Schedule—

• “claim” means a claim or election as respects which this Schedule applies;

• “partnership claim” means a claim made in accordance with section 42(6)(b) of, or paragraph 5 of Schedule 1AB to, this Act or paragraph 51D of Schedule 18 to the Finance Act 1998 (claims for overpaid corporation tax);

• “profits”— in relation to income tax, means income,in relation to capital gains tax, means chargeable gains, andin relation to corporation tax, means profits as computed for the purposes of that tax;

• “relevant partner”, in relation to a partnership claim, means any person who was a partner at any time during the period in respect of which the claim is made;

• “successor”, in relation to a person who—has made a partnership claim, butis no longer a partner or is otherwise no longer available,means such other partner who may at any time be nominated for the purposes of this paragraph by the majority of the partners at that time, and “predecessor” and “successor”, in relation to a person so nominated, shall be construed accordingly.

Making of claims

2

• (1) Subject to any provision in the Taxes Acts for a claim to be made to the Board, every claim shall be made to an officer of the Board.

• (2) No claim requiring the repayment of tax shall be made unless the claimant has documentary proof that the tax has been paid by deduction or otherwise.

• (3) A claim shall be made in such form as the Board may determine.

• (4) The form of claim shall provide for a declaration to the effect that all the particulars given in the form are correctly stated to the best of the information and belief of the person making the claim.

• (5) The form of claim may require—

• (a) a statement of the amount of tax which will be required to be discharged or repaid in order to give effect to the claim;

• (b) such information as is reasonably required for the purpose of determining whether and, if so, the extent to which the claim is correct; and

• (bb) the delivery with the claim of such accounts, statements and documents, relating to information contained in the claim, as are reasonably required for the purpose mentioned in paragraph (b) above; ...

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

• (6) In the case of a claim made by or on behalf of a person who is not resident, or who claims to be not resident ... or not domiciled, in the United Kingdom, an officer of the Board or the Board may require a statement or declaration in support of the claim to be made by affidavit.

Keeping and preserving of records

2A

• (1) Any person who may wish to make a claim in relation to a year of assessment or other period shall—

• (a) keep all such records as may be requisite for the purpose of enabling him to make a correct and complete claim; and

• (b) shall preserve those records until the end of the relevant day.

• (2) In relation to a claim, the relevant day for the purposes of sub-paragraph (1) above is whichever of the following is the latest, namely—

• (a) where enquiries into the claim or any amendment of the claim are made by an officer of the Board, the day on which, by virtue of paragraph 7(1) below, those enquiries are ... completed; and

• (b) where no enquiries into the claim or any amendment of the claim are so made, the day on which such an officer no longer has power to make such enquiries.

• (2A) The Commissioners for Her Majesty's Revenue and Customs may by regulations—

• (a) provide that the records required to be kept and preserved under sub-paragraph (1) include, or do not include, records specified in the regulations, and

• (b) provide that those records include supporting documents so specified.

• (3) The duty under sub-paragraph (1) to preserve records may be discharged—

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

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

subject to sub-paragraph (3A) and any conditions or further exceptions specified in writing by the Commissioners for Her Majesty's Revenue and Customs.

• (3A) Sub-paragraph (3)(b) does not apply in the case of records of the kinds specified in section 12B(4A) or paragraph 22(3) of Schedule 18 to the Finance Act 1998.

• (4) Subject to sub-paragraph (5) below, any person who fails to comply with sub-paragraph (1) above in relation to any claim which is made for a year of assessment or accounting period shall be liable to a penalty not exceeding £3,000.

• (5) Sub-paragraph (4) above does not apply where—

• (a) the records which the person fails to keep or preserve are records falling within paragraph (a) of section 12B(4A) of this Act or paragraph 22(3) of Schedule 18 to the Finance Act 1998; and

• (b) an officer of the Board is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.

• (6) Regulations under this paragraph may—

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

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

• (7) In this paragraph “supporting documents” includes accounts, books, deeds, contracts, vouchers and receipts.

Amendments of claims

3

• (1) Subject to sub-paragraph (2) below—

• (a) at any time before the end of the period of nine months beginning with the day on which a claim is made, an officer of the Board may by notice to the claimant so amend the claim as to correct any obvious errors or mistakes in the claim (whether errors of principle, arithmetical mistakes or otherwise); and

• (b) at any time before the end of the period of twelve months beginning with the day on which the claim is made, the claimant may amend his claim by notice to an officer of the Board.

• (2) No amendment of a claim may be made under sub-paragraph (1) above at any time during the period—

• (a) beginning with the day on which an officer of the Board gives notice of his intention to enquire into the claim, and

• (b) ending with the day on which the officer’s enquiries into the claim are completed.

Giving effect to claims and amendments

4

• (1) Subject to sub-paragraphs (1A), (3) to (5) below ... , an officer of the Board or the Board shall, as soon as practicable after a claim other than a partnership claim is made, or such a claim is amended under paragraph 3 above, give effect to the claim or amendment by discharge or repayment of tax.

• (1A) In relation to a claim which would otherwise fall to be taken into account in the making of deductions or repayments of tax under PAYE regulations, sub-paragraph (1) above shall apply as if for the word “shall” there were substituted the word “may”.

• (2) Subject to sub-paragraphs (3) to (5) below, an officer of the Board or the Board shall, as soon as practicable after a partnership claim is made, or such a claim is amended under paragraph 3 above, give effect to the claim or amendment, as respects each of the relevant partners, by discharge or repayment of tax.

• (3) Where any such claim or amendment as is mentioned in sub-paragraph (1) or (2) above is enquired into by an officer of the Board—

• (a) that sub-paragraph shall not apply until the day on which, by virtue of paragraph 7(1) below, the enquiry is completed; but

• (b) the officer may at any time before that day give effect to the claim or amendment, on a provisional basis, to such extent as he thinks fit.

• (4) Nothing in this paragraph applies in relation to a claim or an amendment of a claim if the claim is not one for discharge or repayment of tax.

• (5) This paragraph has effect subject to any provision in the Taxes Acts that—

• (a) requires or allows effect to be given to a claim by other means, or

• (b) provides that an amount is not to be discharged or repaid.

Power to enquire into claims

5

• (1) An officer of the Board may enquire into—

• (a) a claim made by any person, or

• (b) any amendment made by any person of a claim made by him,

if, before the end of the period mentioned in sub-paragraph (2) below, he gives notice in writing of his intention to do so to that person or, in the case of a partnership claim, any successor of that person.

• (2) The period referred to in sub-paragraph (1) above is whichever of the following ends the latest, namely—

• (a) the period ending with the quarter day next following the first anniversary of the day on which the claim or amendment was made;

• (b) where the claim or amendment relates to a year of assessment, the period ending with the first anniversary of the 31st January next following that year; and

• (c) where the claim or amendment relates to a period other than a year of assessment, the period ending with the first anniversary of the end of that period;

and the quarter days for the purposes of this sub-paragraph are 31st January, 30th April, 31st July and 31st October.

• (3) A claim or amendment which has been enquired into under sub-paragraph (1) above shall not be the subject of—

• (a) a further notice under that sub-paragraph; or

• (b) if it is subsequently included in a return, a notice under section 9A(1) or 12AC(1) of this Act or paragraph 24 of Schedule 18 to the Finance Act 1998.

Power to call for documents for purposes of enquiries

6

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Appeal against notice to produce documents, etc

6A

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

Completion of enquiry into claim

7

• (1) An enquiry under paragraph 5 above is completed when an officer of the Board by notice (a “closure notice”) informs the claimant that he has completed his enquiries and states his conclusions.

• (2) In the case of a claim for discharge or repayment of tax, the closure notice must either—

• (a) state that in the officer’s opinion no amendment of the claim is required, or

• (b) if in the officer’s opinion the claim is insufficient or excessive, amend the claim so as to make good or eliminate the deficiency or excess.

In the case of an enquiry falling within paragraph 5(1)(b) above, paragraph (b) above only applies so far as the deficiency or excess is attributable to the claimant’s amendment.

• (3) In the case of a claim that is not a claim for discharge or repayment of tax, the closure notice must either—

• (a) allow the claim, or

• (b) disallow the claim, wholly or to such extent as appears to the officer appropriate.

• (4) A closure notice takes effect when it is issued.

• (5) The claimant may apply to the tribunal for a direction requiring an officer of the Board to issue a closure notice within a specified period.

• (6) Any such application is to be subject to the relevant provisions of Part 5 of this Act (see, in particular, section 48(2)(b)).

• (7) The tribunal shall give the direction applied for unless ... satisfied that there are reasonable grounds for not issuing a closure notice within a specified period.

• (8) In relation to a partnership claim, references in this paragraph to the claimant are to the person who made the claim or his successor.

Giving effect to such amendments

8

• (1) An officer of the Board or the Board shall, within 30 days after the date of issue of a closure notice amending a claim other than a partnership claim under paragraph 7(2) above, give effect to the amendment by making such adjustment as may be necessary, whether—

• (a) by way of assessment on the claimant, or

• (b) by discharge of tax or, on proof to the satisfaction of the officer or the Board that any tax has been paid by the claimant by deduction or otherwise, by repayment of tax.

• (2) An officer of the Board or the Board shall, within 30 days after the date of issue of a closure notice amending a partnership claim under paragraph 7(2), give effect to the amendment, as respects each of the relevant partners, by making such adjustment as may be necessary, whether—

• (a) by way of assessment on the partner, or

• (b) by discharge of tax or, on proof to the satisfaction of the officer or the Board that any tax has been paid by the partner by deduction or otherwise, by repayment of tax.

• (3) An assessment made under sub-paragraph (1) or (2) above shall not be out of time if it is made within the time mentioned in that sub-paragraph.

Appeals against such amendments

9

• (1) An appeal may be brought against—

• (a) any conclusion stated or amendment made by a closure notice under paragraph 7(2) above, or

• (b) any decision contained in a closure notice under paragraph 7(3) above.

• (1A) Notice of the appeal must be given—

• (a) in writing,

• (b) within 30 days after the date on which the closure notice was issued,

• (c) to the officer of the Board by whom the closure notice was given.

• (2) Where, in the case of such an appeal, the issues arising include—

• (a) any question arising under section 278 of the principal Act or section 56 or 460 of ITA 2007 (residence etc of claimants);

• (b) any question of residence, ordinary residence or domicile; or

• (c) the question whether a fund is one to which section 615(3) of the principal Act applies (pension funds for service abroad),

the time for bringing the appeal shall be three months from the date mentioned in sub-paragraph (1A)(b) above.

• (3) In the case of an appeal against an amendment made by a closure notice under paragraph 7(2) above, if an appeal is notified to the tribunal under section 49D, 49G or 49H, the tribunal may vary the amendment appealed against whether or not the variation is to the advantage of the appellant.

• (4) Where any such amendment is varied, whether by HMRC or by the tribunal or by the order of any court, paragraph 8 above shall (with the necessary modifications) apply in relation to the variation as it applied in relation to the amendment.

• (5) If, on an appeal notified to the tribunal, the tribunal decides that a claim which was the subject of a decision contained in a closure notice under paragraph 7(3) above should have been allowed or disallowed to an extent different from that specified in the notice, the claim shall be allowed or disallowed accordingly to the extent that appears ... appropriate, but otherwise the decision in the notice shall stand good.

10

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11

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SCHEDULE 1B

Preliminary

1

• (1) In this Schedule—

• (a) any reference to a claim includes a reference to an election or notice; and

• (b) any reference to the amount in which a person is chargeable to tax is a reference to the amount in which he is so chargeable after taking into account any relief or allowance for which a claim is made.

• (2) For the purposes of this Schedule, two or more claims made by the same person are associated with each other if each of them is a claim to which this Schedule applies and the same year of assessment is the earlier year in relation to each of those claims.

• (3) In sub-paragraph (2) above, any reference to claims includes a reference to amendments and revocations to which paragraph 4 below applies.

Loss relief

2

• (1) This paragraph applies where a person makes a claim requiring relief for a loss incurred or treated as incurred, or a payment made, in one year of assessment (“the later year”) to be given in an earlier year of assessment (“the earlier year”).

• (2) Section 42(2) of this Act shall not apply in relation to the claim.

• (3) The claim shall relate to the later year.

• (4) Subject to sub-paragraph (5) below, the claim shall be for an amount equal to the difference between—

• (a) the amount in which the person is chargeable to tax for the earlier year (“amount A”); and

• (b) the amount in which he would be so chargeable on the assumption that effect could be, and were, given to the claim in relation to that year (“amount B”).

• (5) Where effect has been given to one or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the associated claim or claims in relation to the earlier year.

• (6) Effect shall be given to the claim in relation to the later year, whether by repayment or set-off, or by an increase in the aggregate amount given by section 59B(1)(b) of this Act, or otherwise.

• (7) For the purposes of this paragraph, any deduction made under section 62(2) of the 1992 Act (death: general provisions) in respect of an allowable loss shall be deemed to be made in pursuance of a claim requiring relief to be given in respect of that loss.

Relief for fluctuating profits of farming etc.

3

• (1) This paragraph applies where a person who is or has been carrying on a qualifying trade, profession or vocation (within the meaning of Chapter 16 of Part 2 of ITTOIA 2005) claims that Chapter 16 of Part 2 of ITTOIA 2005 shall have effect in relation to his profits from that trade, profession or vocation

• (a) in the case of a two-year claim, for two consecutive years of assessment, and

• (b) in the case of a five-year claim, for five consecutive years of assessment.

• (2) The claim shall relate to the last of the two or five years.

• (3) Subject to sub-paragraph (4) below, in so far as the claim relates to the profits of an earlier year, the claim shall be for an amount equal to the difference between—

• (a) the amount in which the person is chargeable to tax for the earlier year (“amount A”); and

• (b) the amount in which he would be so chargeable on the assumption that effect could be, and were, given to the claim in relation to that year (“amount B”).

• (4) Where effect has been given to one or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the associated claim or claims in relation to the earlier year.

• (5) In so far as the claim relates to the profits of an earlier year, effect shall be given to the claim in relation to the last of the two or five years by an increase in the amount of tax payable or, as the case may require, in the aggregate amount given by section 59B(1)(b) of this Act.

• (6) Where this paragraph applies twice in relation to the same year of assessment, the increase or reduction in the amount of tax payable for that year which is required by sub-paragraph (5) above on the earlier application shall be disregarded in determining amounts A and B above for the purposes of the later application.

• (7) In this paragraph—

• “two-year claim” means a claim under section 222 of ITTOIA 2005;

• “five-year claim” means a claim under section 222A of ITTOIA 2005.

Relief claimed by virtue of section 224(4) of ITTOIA 2005

4

• (1) This paragraph applies where—

• (a) a person who claims that Chapter 16 of Part 2 of ITTOIA 2005 shall have effect for two or five consecutive years of assessment ... makes or amends a claim for relief under any other provision of the Income Tax Acts for any of those years; and

• (b) the making or amendment of the claim would be out of time but for section 224(4) of that Act .

• (2) The claim or amendment shall relate to the last of the two or five years.

• (3) Subject to sub-paragraph (4) below, in so far as the claim or amendment relates to income of an earlier year, the amount claimed, or (as the case may be) the increase or reduction in the amount claimed, shall be equal to the difference between—

• (a) the amount in which the person is chargeable to tax for the earlier year (“amount A”); and

• (b) the amount in which he would be so chargeable on the assumption that effect could be, and were, given to the claim or amendment in relation to that year (“amount B”).

• (4) Where effect has been given to one or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the associated claim or claims in relation to the earlier year.

• (5) In so far as the claim or amendment relates to income of an earlier year, effect shall be given to the claim or amendment in relation to the last of the two or five years by an increase in the amount of tax payable or, as the case may require, in the aggregate amount given by section 59B(1)(b) of this Act.

• (6) In this paragraph “amendment” shall be construed accordingly.

Carry-back of post-cessation etc. receipts

5

• (1) This paragraph applies where a person who has received a sum to which section 257 of ITTOIA 2005 applies (election for carry-back) makes an election under that section requiring tax to be charged as if the sum were received on the date of the cessation; and in this paragraph—

• “the earlier year” means the year in which the sum is treated as received;

• “the later year” means the year in which the sum is received.

• (2) The claim shall relate to the later year.

• (3) Subject to sub-paragraph (4) below, the claim shall be for an amount equal to the difference between—

• (a) the amount in which the person is chargeable to tax for the earlier year (“amount A”); and

• (b) the amount in which he would be so chargeable on the assumption that effect could be, and were, given to the claim in relation to that year (“amount B”).

• (4) Where effect has been given to one or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the associated claim or claims in relation to the earlier year.

• (5) In computing amount B for the purposes of this paragraph, no further deduction or relief shall be made or given in respect of any loss or allowance deducted in pursuance of section 254 of ITTOIA 2005.

• (6) Effect shall be given to the claim in relation to the later year by an increase in the amount of tax payable.

Backward spreading of certain payments

6

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SCHEDULE 2

Appeal from inspector

1

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2

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Supplemental

3

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SCHEDULE 3

Introductory

1

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General rule for income and capital gains tax proceedings

2

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Pay As You EarnPAYE appeals

3

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Corporation tax et ceteralaetc.

4

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Procedure for making elections, et ceteralaetc.

5

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6

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Partnerships

7

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Directions by the Board

8

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9

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Other provisions

10

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SCHEDULE 3ZA

General

1

• (1) This Schedule specifies the day by which tax has to be paid (or repaid) following the amendment or correction of a self-assessment ...

• (2) If in any case the general rules in section ... 59B(3) and (4) of this Act give a later day, those rules apply instead.

• (3) The provisions of this Schedule have effect subject to section 55(6) and (9) of this Act (provisions as to postponement of payment, etc. in case of appeal).

Amendment of personal or trustee return by the taxpayer

2

• (1) This paragraph applies where an amount of tax is payable or repayable as a result of the amendment of a self-assessment under section 9ZA of this Act (amendment of personal or trustee return by taxpayer) ... .

• (2) Subject to sub-paragraph (3) below, the amount is payable (or repayable) on or before the day following the end of the period of 30 days beginning with the day on which the notice of amendment was given.

• (3) If section 9B(3) ... of this Act applies (amendment of self-assessment ... by taxpayer during enquiry: deferral of effect), then—

• (a) if the amendment is taken into account as mentioned in paragraph (a)(i) of that subsection, paragraph 5 below (amendment of personal or trustee return by closure notice) applies accordingly; and

• (b) if the amendment takes effect under paragraph (b) of that subsection on the issue of a partial or final closure notice, the amount is payable (or repayable) on or before the day following the end of the period of 30 days beginning with the relevant day.

• (4) In sub-paragraph (3)(b), “the relevant day” means—

• (a) in the case of an amount of tax that is payable, the day on which the partial or final closure notice was given;

• (b) in the case of an amount of tax that is repayable—

• (i) if the closure notice was a final closure notice, the day on which that notice was given, and

• (ii) if the closure notice was a partial closure notice, the day on which the final closure notice relating to the enquiry was given.

Correction of personal or trustee return by Revenue

3

• (1) This paragraph applies where an amount of tax is payable or repayable as a result of the correction of a self-assessment under section 9ZB ... of this Act (correction of personal or trustee return ... by the Revenue).

• (2) The amount is payable (or repayable) on or before the day following the end of the period of 30 days beginning with the day on which the notice of correction was given.

Amendment of personal or trustee return to prevent loss of tax

4

• (1) This paragraph applies where an amount of tax is payable or repayable as a result of the amendment of a self-assessment under section 9C of this Act (amendment of personal or trustee return by Revenue to prevent loss of tax).

• (2) The amount is payable (or repayable) on or before the day following the end of the period of 30 days beginning with the day on which the notice of amendment was given.

Amendment of personal or trustee return by closure notice

5

• (1) This paragraph applies where an amount of tax or an amount on account of capital gains tax is payable or repayable as a result of the amendment of a self-assessment ... under section 28A of this Act (amendment of ... return by closure notice following enquiry).

• (2) The amount is payable (or repayable) on or before the day following the end of the period of 30 days beginning with the day on which the closure notice was given.

Amendment consequential on amendment of partnership return by taxpayer

6

• (1) This paragraph applies where an amount of tax is payable or repayable as a result of the amendment of a self-assessment under section 12ABA(3)(a) of this Act (consequential amendment of partner’s personal or trustee return where partnership return amended by taxpayer).

• (2) The amount is payable (or repayable) on or before the day following the end of the period of 30 days beginning with the day on which the notice under section 12ABA(3)(a) of this Act was given.

Amendment consequential on correction of partnership return by Revenue or tribunal determination of partnership dispute

7

• (1) This paragraph applies where an amount of tax is payable or repayable as a result of the amendment of a self-assessment under section 12ABZB(8)(a) of this Act (consequential amendment of partner's personal or trustee return where partnership return corrected following reference to tribunal) or section 12ABB(6)(a) of this Act (consequential amendment of partner’s personal or trustee return where partnership return corrected by Revenue).

• (2) The amount is payable (or repayable) on or before the day following the end of the period of 30 days beginning with the day on which the notice under section 12ABZB(8)(a) or 12ABB(6)(a) of this Act was given.

Amendment consequential on amendment of partnership return by closure notice

8

• (1) This paragraph applies where an amount of tax is payable or repayable as a result of the amendment of a self-assessment under section 28B(4)(a) of this Act (consequential amendment of partner’s personal or trustee return where partnership return amended by closure notice).

• (2) The amount is payable (or repayable) on or before the day following the end of the period of 30 days beginning with the day on which the notice under section 28B(4)(a) of this Act was given.

Amendment consequential on amendment of partnership return to prevent loss of tax

9

• (1) This paragraph applies where an amount of tax is payable or repayable as a result of the amendment of a self-assessment under section 30B(2)(a) of this Act (consequential amendment of partner’s personal or trustee return where partnership return amended by Revenue to prevent loss of tax).

• (2) The amount is payable (or repayable) on or before the day following the end of the period of 30 days beginning with the day on which the notice under section 30B(2)(a) of this Act was given.

Amendment consequential on amendment of partnership return by way of error or mistake relief

10

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Amendment consequential on reduction or increase on appeal of amounts stated in partnership statement

11

• (1) This paragraph applies where an amount of tax is payable or repayable as a result of the amendment of a self-assessment under section 50(9)(a) of this Act (consequential amendment of partner’s personal or trustee return where partnership statement amended by Revenue following decision on appeal).

• (2) The amount is payable (or repayable) on or before the day following the end of the period of 30 days beginning with the day on which the notice under section 50(9)(a) of this Act was given.

SCHEDULE 3ZAA

Introduction

1

• (1) This Schedule makes provision for certain persons who are liable to pay an exit charge under section 25 or 80 of the 1992 Act to agree with HMRC to pay the charge in instalments.

• (2) An agreement under this Schedule is called a “CGT exit charge payment plan”.

Eligibility

2

• (1) This paragraph applies where a person resident in an EEA state outside the United Kingdom is liable to pay an exit charge for a tax year by virtue of section 25(1) or (3) of the 1992 Act (deemed disposals by non-residents).

• (2) The person is eligible to enter into a CGT exit charge payment plan in relation to any one or more of the assets to which the exit charge relates if—

• (a) at the time of the event giving rise to the exit charge, the person had a right to freedom of establishment, or

• (b) at any time after that event, the person carries on a trade in an EEA state other than the United Kingdom through a branch or agency and the asset or assets is or are—

• (i) used in or for the purposes of that trade, or

• (ii) used or held for the purposes of the branch or agency.

3

• (1) This paragraph applies where the relevant trustees of a settlement are liable to pay an exit charge for a tax year by virtue of section 80 of the 1992 Act (charge on ceasing to be resident in the UK).

• (2) The relevant trustees are eligible to enter into a CGT exit charge payment plan in relation to any one or more of the assets to which the exit charge relates if—

• (a) at the time the trustees of the settlement ceased to be resident in the United Kingdom for the purposes of that section, they had a right to freedom of establishment,

• (b) immediately before that time, the trustees of the settlement used the asset or assets for an economically significant activity carried on in the United Kingdom, and

• (c) immediately after that time, those trustees—