The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009

(83A) (1) HMRC must offer a person (P) a review of a decision that has been notified to P if an appeal lies under section 83 in respect of the decision. (2) The offer of the review must be made by notice given to P at the same time as the decision is notified to P. (3) This section does not apply to the notification of the conclusions of a review. (83B) (1) Any person (other than P) who has the right of appeal under section 83 against a decision may require HMRC to review that decision if that person has not appealed to the tribunal under section 83G. (2) A notification that such a person requires a review must be made within 30 days of that person becoming aware of the decision. (83C) (1) HMRC must review a decision if— (a) they have offered a review of the decision under section 83A, and (b) P notifies HMRC accepting the offer within 30 days from the date of the document containing the notification of the offer. (2) But P may not notify acceptance of the offer if P has already appealed to the tribunal under section 83G. (3) HMRC must review a decision if a person other than P notifies them under section 83B. (4) HMRC shall not review a decision if P, or another person, has appealed to the tribunal under section 83G in respect of the decision. (83D) (1) If under section 83A HMRC have offered P a review of a decision, HMRC may within the relevant period notify P that the relevant period is extended. (2) If under section 83B another person may require HMRC to review a matter, HMRC may within the relevant period notify the other person that the relevant period is extended. (3) If notice is given the relevant period is extended to the end of 30 days from— (a) the date of the notice, or (b) any other date set out in the notice or a further notice. (4) In this section “relevant period” means— (a) the period of 30 days referred to in— (i) section 83C(1)(b) (in a case falling within subsection (1)), or (ii) section 83B(2) (in a case falling within subsection (2)), or (b) if notice has been given under subsection (1) or (2), that period as extended (or as most recently extended) in accordance with subsection (3). (83E) (1) This section applies if— (a) HMRC have offered a review of a decision under section 83A and P does not accept the offer within the time allowed under section 83C(1)(b) or 83D(3); or (b) a person who requires a review under section 83B does not notify HMRC within the time allowed under that section or section 83D(3). (2) HMRC must review the decision under section 83C if— (a) after the time allowed, P, or the other person, notifies HMRC in writing requesting a review out of time, (b) HMRC are satisfied that P, or the other person, had a reasonable excuse for not accepting the offer or requiring review within the time allowed, and (c) HMRC are satisfied that P, or the other person, made the request without unreasonable delay after the excuse had ceased to apply. (3) HMRC shall not review a decision if P, or another person, has appealed to the tribunal under section 83G in respect of the decision. (83F) (1) This section applies if HMRC are required to undertake a review under section 83C or 83E. (2) The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances. (3) For the purpose of subsection (2), HMRC must, in particular, have regard to steps taken before the beginning of the review— (a) by HMRC in reaching the decision, and (b) by any person in seeking to resolve disagreement about the decision. (4) The review must take account of any representations made by P, or the other person, at a stage which gives HMRC a reasonable opportunity to consider them. (5) The review may conclude that the decision is to be— (a) upheld, (b) varied, or (c) cancelled. (6) HMRC must give P, or the other person, notice of the conclusions of the review and their reasoning within— (a) a period of 45 days beginning with the relevant date, or (b) such other period as HMRC and P, or the other person, may agree. (7) In subsection (6) “relevant date” means— (a) the date HMRC received P’s notification accepting the offer of a review (in a case falling within section 83A), or (b) the date HMRC received notification from another person requiring review (in a case falling within section 83B), or (c) the date on which HMRC decided to undertake the review (in a case falling within section 83E). (8) Where HMRC are required to undertake a review but do not give notice of the conclusions within the time period specified in subsection (6), the review is to be treated as having concluded that the decision is upheld. (9) If subsection (8) applies, HMRC must notify P or the other person of the conclusion which the review is treated as having reached. (83G) (1) An appeal under section 83 is to be made to the tribunal before— (a) the end of the period of 30 days beginning with— (i) in a case where P is the appellant, the date of the document notifying the decision to which the appeal relates, or (ii) in a case where a person other than P is the appellant, the date that person becomes aware of the decision, or (b) if later, the end of the relevant period (within the meaning of section 83D). (2) But that is subject to subsections (3) to (5). (3) In a case where HMRC are required to undertake a review under section 83C— (a) an appeal may not be made until the conclusion date, and (b) any appeal is to be made within the period of 30 days beginning with the conclusion date. (4) In a case where HMRC are requested to undertake a review in accordance with section 83E— (a) an appeal may not be made— (i) unless HMRC have decided whether or not to undertake a review, and (ii) if HMRC decide to undertake a review, until the conclusion date; and (b) any appeal is to be made within the period of 30 days beginning with— (i) the conclusion date (if HMRC decide to undertake a review), or (ii) the date on which HMRC decide not to undertake a review. (5) In a case where section 83F(8) applies, an appeal may be made at any time from the end of the period specified in section 83F(6) to the date 30 days after the conclusion date. (6) An appeal may be made after the end of the period specified in subsection (1), (3)(b), (4)(b) or (5) if the tribunal gives permission to do so. (7) In this section “conclusion date” means the date of the document notifying the conclusions of the review.

221

• (1) Section 84 (further provisions relating to appeals)¹²⁹ is amended as follows.

• (2) Omit subsection (2).

• (3) For subsection (3) substitute—

(3) Subject to subsections (3B) and (3C), where the appeal is against a decision with respect to any of the matters mentioned in section 83(1)(b), (n), (p), (q), (ra) or (zb), it shall not be entertained unless the amount which HMRC have determined to be payable as VAT has been paid or deposited with them.

• (4) For subsection (3A) substitute—

(3A) Subject to subsections (3B) and (3C), where the appeal is against an assessment which is a recovery assessment for the purposes of this subsection, or against the amount of such an assessment, it shall not be entertained unless the amount notified by the assessment has been paid or deposited with HMRC.

• (5) After subsection (3A) insert—

(3B) In a case where the amount determined to be payable as VAT or the amount notified by the recovery assessment has not been paid or deposited an appeal shall be entertained if— (a) HMRC are satisfied (on the application of the appellant), or (b) the tribunal decides (HMRC not being so satisfied and on the application of the appellant), - that the requirement to pay or deposit the amount determined would cause the appellant to suffer hardship. (3C) Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007, the decision of the tribunal as to the issue of hardship is final.

• (6) In subsection (4) in paragraphs (a) and (b) and in the words following paragraph (c) for “the Commissioners” substitute “HMRC”.

• (7) In subsections (4ZA), (4A)(a), (4C), (4D), (7), (7ZA) and (7B) for “the Commissioners” substitute “HMRC”.

• (8) In subsections (4ZA)(a), (5), (6), (6A), (6B), (7), (7A), (7ZA) and (7B) for “83” substitute “83(1)”.

• (9) In subsection (4E) for “the Commissioners satisfy” substitute “HMRC satisfies”.

• (10) Omit subsection (8).

• (11) In subsection (9)—

• (a) after “section 14” add “or 15A”;

• (b) in paragraph (b) for “the Commissioners” substitute “HMRC”;

• (c) at the end of paragraph (b) insert “and”; and

• (d) after paragraph (b) insert—

(c) a review is not being undertaken following a request under section 14A of that Act; and (d) a review is not being undertaken under section 15 of that Act as a consequence of section 15B(3), 15C(3) or 15E(3) of that Act.

• (12) In subsection (10)—

• (a) for “a decision of the Commissioners” substitute “an HMRC decision”;

• (b) omit “by them”.

222

• (1) Section 85 (settling appeals by agreement) is amended as follows.

• (2) In subsection (1) at the end, omit “(including any terms as to costs)”.

• (3) For “the Commissioners” (in each place) substitute “HMRC”.

223

After section 85 insert—

(85A) (1) This section applies where the tribunal has determined an appeal under section 83. (2) Where on the appeal the tribunal has determined that— (a) the whole or part of any disputed amount paid or deposited is not due, or (b) the whole or part of any VAT credit due to the appellant has not been paid, so much of that amount, or of that credit, as the tribunal determines not to be due or not to have been paid shall be paid or repaid with interest at the rate applicable under section 197 of the Finance Act 1996¹³⁰. (3) Where on the appeal the tribunal has determined that— (a) the whole or part of any disputed amount not paid or deposited is due, or (b) the whole or part of any VAT credit paid was not payable, so much of that amount, or of that credit, as the tribunal determines to be due or not payable shall be paid or repaid to HMRC with interest at the rate applicable under section 197 of the Finance Act 1996. (4) Interest under subsection (3) shall be paid without any deduction of income tax. (5) Nothing in this section requires HMRC to pay interest— (a) on any amount which falls to be increased by a supplement under section 79 (repayment supplement in respect of certain delayed payments or refunds); or (b) where an amount is increased under that section, on so much of the increased amount as represents the supplement. (85B) (1) Where a party makes a further appeal, notwithstanding that the further appeal is pending, value added tax or VAT credits, or a credit of overstated or overpaid value added tax shall be payable or repayable in accordance with the determination of the tribunal or court against which the further appeal is made. (2) But if the amount payable or repayable is altered by the order or judgment of the tribunal or court on the further appeal— (a) if too much value added tax has been paid or the whole or part of any VAT credit due to the appellant has not been paid the amount overpaid or not paid shall be refunded with such interest, if any, as the tribunal or court may allow; and (b) if too little value added tax has been charged or the whole or part of any VAT credit paid was not payable so much of the amount as the tribunal or court determines to be due or not payable shall be due or repayable, as appropriate, at the expiration of a period of thirty days beginning with the date on which HMRC issue to the other party a notice of the total amount payable in accordance with the order or judgment of that tribunal or court. (3) If, on the application of HMRC, the relevant tribunal or court considers it necessary for the protection of the revenue, subsection (1) shall not apply and the relevant tribunal or court may— (a) give permission to withhold any payment or repayment; or (b) require the provision of adequate security before payment or repayment is made. (4) If, on the application of the original appellant, HMRC are satisfied that financial extremity might be reasonably expected to result if payment or repayment is required or withheld as appropriate, HMRC may do one or more of the things listed in subsection (6). (5) If on the application of the original appellant, the relevant tribunal or court decides that— (a) the original appellant has applied to HMRC under subsection (4), (b) HMRC have decided that application, (c) financial extremity might be reasonably expected to result from that decision by HMRC, - the relevant tribunal or court may replace, vary or supplement the decision by HMRC by doing one or more of the things listed in subsection (6). (6) These are the things which HMRC or the relevant tribunal or court may do under subsection (4) or (5)— (a) decide how much, if any, of the amount under appeal should be paid or repaid as appropriate, (b) require the provision of adequate security from the original appellant, (c) stay the requirement to pay or repay under subsection (1). (7) Subsections (3) to (6) cease to have effect when the further appeal has been determined. (8) In this section— - “adequate security” means security that is of such amount and given in such manner—as the tribunal or court may determine (in a case falling within subsection (3) or (5)), oras HMRC consider adequate to protect the revenue (in a case falling within subsection (4)); - “further appeal” means an appeal against—the tribunal’s determination of an appeal under section 83, ora decision of the Upper Tribunal or a court that arises (directly or indirectly) from that determination; - “original appellant” means the person who made the appeal to the tribunal under section 83; - “relevant tribunal or court” means the tribunal or court from which permission or leave to appeal is sought.

224

Omit sections 86 and 87.

225

In section 96(1) (other interpretative provisions) before the definition of “invoice” insert—

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

226

• (1) Section 97 (orders, rules and regulations) is amended as follows.

• (2) In subsection (1) after “the Treasury” omit “or the Lord Chancellor”,

• (3) Omit subsection (2).

227

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

228

Omit Schedule 12.

229

Omit paragraph 12 of Schedule 14.

Finance Act 1995

230

The Finance Act 1995¹³¹ is amended as follows.

231

• (1) Section 5(4) (denatured alcohol) is amended as follows.

• (2) For “14 to 16” substitute “13A to 16”.

• (3) For “specified in Schedule 5 to that Act” substitute “falling within section 13A(2)(j) of that Act”.

Finance Act 1996

232

The Finance Act 1996¹³² is amended as follows.

233

For section 46(2)(c) (power to vary) substitute—

(c) provide for reviews and appeals relating to decisions about certificates.

234

• (1) Section 54 (landfill tax: review of commissioners’ decisions)¹³³ is amended as follows.

• (2) For the heading, substitute “Appeals”.

• (3) For “This section applies to the following decisions of the Commissioners” substitute “Subject to section 55, an appeal shall lie to an appeal tribunal from any person who is or will be affected by any of the following decisions—”

• (4) Omit subsections (3) to (8).

235

After section 54 insert—

(54A) (1) HMRC must offer a person (P) a review of a decision that has been notified to P if an appeal lies under section 54 in respect of the decision. (2) The offer of the review must be made by notice given to P at the same time as the decision is notified to P. (3) This section does not apply to the notification of the conclusions of a review. (54B) (1) Any person (other than P) who has the right of appeal under section 54 against a decision may require HMRC to review that decision if that person has not appealed to the appeal tribunal under section 54G. (2) A notification that such a person requires a review must be made within 30 days of that person becoming aware of the decision. (54C) (1) HMRC must review a decision if— (a) they have offered a review of the decision under section 54A, and (b) P notifies HMRC accepting the offer within 30 days from the date of the document containing the notification of the offer. (2) But P may not notify acceptance of the offer if P has already appealed to the appeal tribunal under section 54G. (3) HMRC must review a decision if a person other than P notifies them under section 54B. (4) HMRC shall not be required to review a decision if P, or another person, has appealed to the appeal tribunal under section 54G in respect of the decision. (54D) (1) If under section 54A, HMRC have offered P a review of a decision, HMRC may within the relevant period notify P that the relevant period is extended. (2) If under section 54B another person may require HMRC to review a matter, HMRC may within the relevant period notify the other person that the relevant period is extended. (3) If notice is given the relevant period is extended to the end of 30 days from— (a) the date of the notice, or (b) any other date set out in the notice or a further notice. (4) In this section “relevant period” means— (a) the period of 30 days referred to in— (i) section 54C(1)(b) (in a case falling within subsection (1)), or (ii) section 54B(2) (in a case falling within subsection (2)), or (b) if notice has been given under subsection (1) or (2), that period as extended (or as most recently extended) in accordance with subsection (3). (54E) (1) This section applies if— (a) HMRC have offered a review of a decision under section 54A and P does not accept the offer within the time allowed under section 54C(1)(b) or 54D(3); or (b) a person who requires a review under section 54B does not notify HMRC within the time allowed under that section or section 54D(3). (2) HMRC must review the decision under section 54C if— (a) after the time allowed, P, or the other person, notifies HMRC in writing requesting a review out of time, (b) HMRC are satisfied that P, or the other person, had a reasonable excuse for not accepting the offer or requiring review within the time allowed, and (c) HMRC are satisfied that P, or the other person, made the request without unreasonable delay after the excuse had ceased to apply. (3) HMRC shall not be required to review a decision if P, or another person, has appealed to the appeal tribunal under section 54G in respect of the decision. (54F) (1) This section applies if HMRC are required to undertake a review under section 54C or 54E. (2) The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances. (3) For the purpose of subsection (2), HMRC must, in particular, have regard to steps taken before the beginning of the review— (a) by HMRC in reaching the decision, and (b) by any person in seeking to resolve disagreement about the decision. (4) The review must take account of any representations made by P, or the other person, at a stage which gives HMRC a reasonable opportunity to consider them. (5) The review may conclude that the decision is to be— (a) upheld, (b) varied, or (c) cancelled. (6) HMRC must give P, or the other person, notice of the conclusions of the review and their reasoning within— (a) a period of 45 days beginning with the relevant date, or (b) such other period as HMRC and P, or the other person, may agree. (7) In subsection (6) “relevant date” means— (a) the date HMRC received P’s notification accepting the offer of a review (in a case falling within section 54A), or (b) the date HMRC received notification from another person requiring review (in a case falling within section 54B), or (c) the date on which HMRC decided to undertake the review (in a case falling within section 54E). (8) Where HMRC are required to undertake a review but do not give notice of the conclusions within the time period specified in subsection (6), the conclusion of the review is deemed to be that the decision is upheld. (9) HMRC must notify P, or the other person of any conclusion under subsection (8). (54G) (1) An appeal under section 54 is to be made to the appeal tribunal before— (a) the end of the period of 30 days beginning with— (i) in a case where P is the appellant, the date of the document notifying the decision to which the appeal relates, or (ii) in a case where a person other than P is the appellant, the date that person becomes aware of the decision, or (b) if later, the end of the relevant period (within the meaning of section 54D). (2) But that is subject to subsections (3) to (5). (3) In a case where HMRC are required to undertake a review under section 54C— (a) an appeal may not be made until the conclusion date, and (b) any appeal is to be made within the period of 30 days beginning with the conclusion date. (4) In a case where HMRC are requested to undertake a review by virtue of section 54E— (a) an appeal may not be made— (i) unless HMRC have decided whether or not to undertake a review, and (ii) if HMRC decide to undertake a review, until the conclusion date; and (b) any appeal is to be made within the period of 30 days beginning with— (i) the conclusion date (if HMRC decide to undertake a review), or (ii) the date on which HMRC decide not to undertake a review. (5) In a case where section 54F(8) applies, an appeal may be made at any time from the end of the period specified in section 54F(6) to the date 30 days after the conclusion date. (6) An appeal may be made after the end of the period specified in subsection (1), (3)(b), (4)(b) or (5) if the appeal tribunal gives permission to do so. (7) In this section “conclusion date” means the date of the document notifying the conclusions of the review.

236

• (1) Section 55 (appeals: general) is amended as follows.

• (2) For the heading substitute “Appeals: further provisions”.

• (3) Omit subsection (1).

• (4) Omit subsection (2).

• (5) For subsection (3) substitute—

(3) Subject to subsections (3A) and (3B), where an appeal under section 54 relates to a decision falling within section 54(1)(b) or (d), it shall not be entertained unless the amount which HMRC have determined to be payable as tax has been paid or deposited with them.

• (6) After subsection (3) insert—

(3A) In a case where the amount determined to be payable as tax has not been paid or deposited an appeal may be entertained if— (a) HMRC are satisfied (on the application of the appellant), or (b) the appeal tribunal decides (HMRC not being so satisfied and on the application of the appellant), - that the requirement to pay or deposit the amount determined would cause the appellant to suffer hardship. (3B) Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007, the decision of the tribunal as to the issue of hardship is final.

237

• (1) Section 56 (appeals: other provisions) is amended as follows.

• (2) Omit subsection (1).

• (3) In subsection (2), for “Where on the appeal” substitute “Where on an appeal under section 54”.

• (4) In subsection (3) for “at such rate as the tribunal may determine” substitute “at the rate applicable under section 197 of this Act”.

• (5) In subsection (4) for “at such rate as the tribunal may determine” substitute “at the rate applicable under section 197 of this Act”.

• (6) In subsection (5) for “the tribunal may, if it thinks fit, direct that the amount shall be paid with interest at such rate as may be specified in the direction” substitute “it shall be paid with interest at the rate applicable under section 197 of this Act”.

• (7) After subsection (5) insert—

(5A) Interest under subsection (5) shall be paid without any deduction of income tax.

• (8) For subsection (8) substitute—

(8) Sections 85 and 85B of the Value Added Tax Act 1994 (settling of appeals by agreement and payment of tax where there is a further appeal)¹³⁴ shall have effect as if— (a) the references to section 83 of that Act included references to section 54 of this Act, and (b) the references to value added tax included references to landfill tax.

238

• (1) Section 70(1) (interpretation) is amended as follows.

• (2) In the definition of “appeal tribunal”, for “a VAT and duties tribunal” substitute “the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal;”.

• (3) After the definition of “the Environment Agency” insert—

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

239

• (1) Section 197 (setting of rates of interest)¹³⁵ is amended as follows.

• (2) In subsection (2)—

• (a) in paragraph (a) for “paragraph 7” substitute “paragraphs 7 and 8(1)”;

• (b) in paragraph (b) before “paragraphs” insert “sections 60(6), (7) and (8) of and”;

• (c) in paragraph (c) for “74 and 78” substitute “74, 78 and 85A(2) and (3)”;

• (d) in paragraph (d) before “paragraphs” insert “sections 56(3) to (5) of and”;

• (e) in paragraph (g) for “and 81(3)” substitute “, 81(3) and 123(4) to (6)”; and

• (f) in paragraph (h)(i) for “and 30(3)(f)” substitute “, 30(3)(f) and 42(4) to (6)”.

240

• (1) Schedule 5 (reviews) is amended as follows.

• (2) In paragraph 19—

• (a) in sub-paragraph (5)(a) and (5)(b) for “require a review of” substitute “appeal against”; and

• (b) for sub-paragraph (5)(c) substitute—

(c) sections 54 to 56 of this Act shall apply accordingly.

• (3) For the heading before paragraph 59 substitute “Reviews and Appeals”.

• (4) In paragraph 59—

• (a) for “Section 54” substitute “Sections 54 to 56”;

• (b) for “as it applies” substitute “as they apply”; and

• (c) for “subsection (1) of that section” substitute “section 54(1)”.

Finance Act 1997

241

The Finance Act 1997¹³⁶ is amended as follows.

242

• (1) Section 11(7) (rate of gaming duty) is amended as follows.

• (2) For “14 to 16” substitute “13A to 16”.

• (3) For “specified in Schedule 5 to that Act” substitute “falling within section 13(A)(2)(j) of that Act”.

243

• (1) Schedule 1 (gaming duty: administration, enforcement etc) is amended as follows.

• (2) In paragraph 8(11)—

• (a) for “14 to 16” substitute “13A to 16”; and

• (b) for “specified in Schedule 5 to that Act” substitute “falling within section 13(A)(2)(j) of that Act”.

• (3) In paragraph 9(5)—

• (a) for “14 to 16” substitute “13A to 16”; and

• (b) for “specified in Schedule 5 to that Act” substitute “falling within section 13(A)(2)(j) of that Act”.

244

• (1) In Schedule 5 (indirect taxes: overpayments etc) paragraph 19 is amended as follows.

• (2) In sub-paragraph (1)—

• (a) for “14 to 16” substitute “13A to 16”; and

• (b) for “14(1)(b)” substitute “13A(2)(b)”.

• (3) In sub-paragraph (2) for “59 and 60” substitute “59 to 60”.

Finance (No 2) Act 1997

245

The Finance (No 2) Act 1997¹³⁷ is amended as follows.

246

• (1) Section 35(9) (transitional relief for charities etc) is amended as follows.

• (2) Omit “An appeal under this section shall lie to the Special Commissioners, and”.

Social Security Act 1998

247

The Social Security Act 1998¹³⁸ is amended as follows.

248

In section 10A(2)(d) (reference of issues by Secretary of State to Inland Revenue)¹³⁹—

• (a) for “tax appeal Commissioners” substitute “First-tier Tribunal or Upper Tribunal”; and

• (b) for “their decision” substitute “the tribunal’s decision”.

249

In section 24A(2)(c) (appeals dependent on issues falling to be decided by Inland Revenue)¹⁴⁰ for “tax appeal Commissioners” substitute “First-tier Tribunal or Upper Tribunal”.

250

In section 39 (interpretation etc of Chapter II) omit the definition of “tax appeal Commissioners”.

Finance Act 1998

251

The Finance Act 1998¹⁴¹ is amended as follows.

252

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253

Schedule 18 (company tax returns, assessments and related matters) is amended as follows.

254

In paragraph 27(5)(b)¹⁴² for “Special Commissioners” substitute “tribunal”.

255

• (1) Paragraph 28 is amended as follows.

• (2) In sub-paragraph (3) omit “heard and”.

• (3) In sub-paragraph (4)—

• (a) for “the Commissioners” substitute “that is notified to the tribunal, the tribunal”; and

• (b) omit “to them” (in both places).

• (4) In sub-paragraphs (5) and (6) for “Commissioners” substitute “tribunal”.

256

In paragraph 29(2)(b) for “Commissioners” substitute “tribunal”.

257

For paragraph 30(5) substitute—

(5) None of the steps mentioned in section 49A(2)(a) to (c) of the Taxes Management Act 1970 may be taken in relation to the appeal before the completion of the enquiry.

258

• (1) Paragraph 31A¹⁴³ is amended as follows.

• (2) In the heading for “Special Commissioners” substitute “ the tribunal”.

• (3) In sub-paragraph (1) for “Special Commissioners” substitute “tribunal” and omit “their”.

• (4) In sub-paragraph (2)—

• (a) omit paragraph (b); and

• (b) in paragraph (c) for “Special Commissioners” substitute “tribunal”.

• (5) Omit sub-paragraph (3).

259

• (1) Paragraph 31B is amended as follows.

• (2) In sub-paragraph (1) omit “by notice in accordance with this paragraph”.

• (3) Omit sub-paragraph (2).

260

In paragraph 31C(3)(a) for “Special Commissioners” substitute “tribunal”.

261

In paragraph 31D(1) for “Special Commissioners” substitute “tribunal”.

262

• (1) Paragraph 33¹⁴⁴ is amended as follows.

• (2) In sub-paragraph (1) for “Commissioners” substitute “tribunal”.

• (3) For sub-paragraph (2) substitute—

(2) Any such application is to be subject to the relevant provisions of Part 5 of the Taxes Management Act 1970 (see, in particular, section 48(2)(b) of that Act).

• (4) In sub-paragraph (3)—

• (a) for “Commissioners hearing the application” substitute “tribunal”; and

• (b) omit “they are”.

263

For paragraph 50(3) substitute—

(3) An appeal may be brought against the Board’s decision on a claim for relief under this paragraph.

264

• (1) Paragraph 51 is amended as follows.

• (2) In sub-paragraph (5) for “Special Commissioners shall hear and” substitute “tribunal shall”.

• (3) In sub-paragraph (6)—

• (a) omit “under section 56A of the Taxes Management Act 1970”; and

• (b) for “Special Commissioners” substitute “tribunal”.

265

Insofar as paragraph 89(1)(b)¹⁴⁵ continues to apply in relation to tax years preceding the tax year 2008-09 it is to have effect as if “tribunal” were substituted for “Special or General Commissioners”.

266

Omit paragraph 92(3).

267

Omit paragraphs 93 and 94.

Social Security Contributions (Transfer of Functions, etc) Act 1999

268

The Social Security Contributions (Transfer of Functions, etc) Act 1999¹⁴⁶ is amended as follows.

269

In section 10(1)(c) (decisions varying or superseding earlier decisions)¹⁴⁷ for “tax appeal Commissioners” substitute “First-tier Tribunal or Upper Tribunal”.

270

In section 11(2) (appeals against decisions of board)¹⁴⁸ for “tax appeal Commissioners”, in each place, substitute “tribunal”.

271

• (1) Section 12 (exercise of right of appeal) is amended as follows.

• (2) For subsection (3) substitute—

(3) The notice of appeal shall specify the grounds of appeal.

• (3) Omit subsections (4) and (5).

272

• (1) Section 13 (regulations with respect to appeals)¹⁴⁹ is amended as follows.

• (2) In subsection (1) for “tax appeal Commissioners” substitute “tribunal”.

• (3) In subsection (2)—

• (a) omit paragraph (a)(i);

• (b) in paragraph (a)(ii) for “tax appeal Commissioners” substitute “tribunal”;

• (c) in paragraph (a)(iii) “for sections 56 and 56A (appeals from their decisions)” substitute “section 56 (payment of tax where there is a further appeal)”; and

• (d) in paragraph (b) for “tax appeal Commissioners” substitute “tribunal”.

• (4) Omit subsections (3) to (5).

273

• (1) Section 14 (matters arising as respects decisions) is amended as follows.

• (2) In subsections (1)(b) and (2)(a) for “tax appeal Commissioners” substitute “tribunal”.

274

For section 19 substitute—

(19) Interpretation of Part II In this Part— - “tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

275

In Schedule 7 omit paragraphs 2 and 3.

Finance Act 1999

276

The Finance Act 1999¹⁵⁰ is amended as follows.

277

In Schedule 11 (company tax returns etc) omit paragraph 9.

278

Part II of Schedule 17 (determination of penalty and appeals) is amended as follows.

279

For the heading substitute “Determination of penalty, reviews and appeals”.

280

After paragraph 9(2) insert—

(3) For the purposes of this Part “tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

281

• (1) Paragraph 11 is amended as follows.

• (2) In sub-paragraph (1) for “lies to the Special Commissioners” substitute “may be made”.

• (3) Omit sub-paragraph (3).

• (4) For sub-paragraph (4) substitute—

(4) The notice of appeal must specify the grounds of appeal.

• (5) After sub-paragraph (4) insert—

(4A) Sections 49A to 49I of the Taxes Management Act 1970¹⁵¹ shall apply to appeals under this paragraph, subject to the modifications in sub-paragraphs (4B) to (4E). (4B) In the application of section 49C(4) for “contained in an agreement in writing under section 54(1) for the settlement of the matter” there is to be substituted “a written agreement under paragraph 10(3)(b) of Schedule 17 to the Finance Act 1999”. (4C) Section 49C(5) and (6) are not to apply. (4D) In the application of section 49F(2) for “an agreement in writing under section 54(1) for the settlement of the matter in question” there is to be substituted “a written agreement under paragraph 10(3)(b) of Schedule 17 to the Finance Act 1999”, (4E) Sections 49F(3) and (4) are not to apply. (4F) References to “the tribunal” are to be taken to be references to the “First-tier Tribunal.

• (6) Omit sub-paragraph (5).

• (7) In sub-paragraph (6)—

• (a) for “Special Commissioners” substitute “First-tier Tribunal”;

• (b) omit “to them” in each place; and

• (c) for “they consider”, in both places, substitute “the First-tier Tribunal considers”.

282

After paragraph 11 insert—

(11A) (1) This paragraph applies in a case where— (a) notice of appeal may be given to HMRC, but (b) no notice is given before the relevant time limit. (2) Notice may be given after the relevant time limit if— (a) HMRC agree, or (b) where HMRC do not agree, the tribunal gives permission. (3) If the following conditions are met, HMRC shall agree to notice being given after the relevant time limit. (4) Condition A is that the appellant has made a request in writing to HMRC to agree to the notice being given. (5) Condition B is that HMRC are satisfied that there was reasonable excuse for not giving the notice before the relevant time limit. (6) Condition C is that HMRC are satisfied that the request under sub-paragraph (4) was made without unreasonable delay after the reasonable excuse ceased. (7) If a request of the kind referred to in sub-paragraph (4) is made, HMRC must notify the appellant whether or not HMRC agree to the appellant giving notice of appeal after the relevant time limit. (8) In this paragraph “relevant time limit”, in relation to notice of appeal, means the time before which the notice is to be given (but for this paragraph).

283

• (1) Paragraph 12 is amended as follows.

• (2) Omit sub-paragraph (1).

• (3) For sub-paragraph (2) substitute—

(2) In addition to any right of appeal on a point of law under section 11(2) of the Tribunals, Courts and Enforcement Act 2007, the person liable to the penalty may appeal to the Upper Tribunal against the amount of the penalty which had been determined under paragraph 11(6) above, but not against any decision which falls under section 11(5)(d) or (e) of that Act and was made in connection with the determination of the amount of the penalty. (2A) Section 11(3) and (4) of the Tribunals, Courts and Enforcement Act 2007 applies to the right of appeal under sub-paragraph (2) as it applies to the right of appeal under section 11(2) of that Act.

• (4) In sub-paragraph (3)—

• (a) for “court” substitute “Upper Tribunal”; and

• (b) for “Special Commissioners” substitute “First-tier Tribunal”.

Welfare Reform and Pensions Act 1999

284

• (1) Section 11 of the Welfare Reform and Pensions Act 1999¹⁵² (effect of bankruptcy on pension rights: approved arrangements) is amended as follows.

• (2) In subsection (4)(b) for “General or Special Commissioners” substitute “tribunal”.

• (3) In subsection (5)(a) for “General or Special Commissioners’ ” substitute “tribunal’s”.

Finance Act 2000

285

The Finance Act 2000¹⁵³ is amended as follows.

286

Schedule 6 (climate change levy, review and appeal) is amended as follows.

287

• (1) Paragraph 99 is amended as follows.

• (2) In sub-paragraph (5) for “reviewed” substitute “appealed”.

• (3) In sub-paragraph (6)—

• (a) for “reviewed” substitute “appealed”; and

• (b) for “122 and 123” substitute “121A to 123”.

• (4) In sub-paragraph (7)—

• (a) for “reviewed” substitute “appealed”; and

• (b) for “122 and 123” substitute “121A to 123”.

288

• (1) Paragraph 121 is amended as follows.

• (2) For the heading substitute “Appeals”.

• (3) In sub-paragraph (1), for the words before paragraph (a) substitute—

(1) Subject to paragraph 122, an appeal shall lie to an appeal tribunal from any person who is or will be affected by any decision of HMRC with respect to any of the following matters—

• (4) In sub-paragraph (1)(h) for “reviewable” substitute “appealable”.

• (5) Omit sub-paragraphs (2) to (9).

289

After paragraph 121 insert—

(121A) (1) HMRC must offer a person (P) a review of a decision that has been notified to P if an appeal lies under paragraph 121 in respect of the decision. (2) The offer of the review must be made by notice given to P at the same time as the decision is notified to P. (3) This paragraph does not apply to the notification of the conclusions of a review. (121B) (1) Any person (other than P) who has the right of appeal under paragraph 121 against a decision may require HMRC to review that decision if that person has not appealed to the appeal tribunal under paragraph 121G. (2) A notification that such a person requires a review must be made within 30 days of that person becoming aware of the decision. (121C) (1) HMRC must review a decision if— (a) they have offered a review of the decision under paragraph 121A, and (b) P notifies HMRC accepting the offer within 30 days from the date of the document containing the notification of the offer. (2) But P may not notify acceptance of the offer if P has already appealed to the appeal tribunal under paragraph 121G. (3) HMRC must review a decision if a person other than P notifies them under paragraph 121B. (4) HMRC shall not review a decision if P, or another person, has appealed to the appeal tribunal under paragraph 121G in respect of the decision. (121D) (1) If under paragraph 121A, HMRC have offered P a review of a decision, HMRC may within the relevant period notify P that the relevant period is extended. (2) If under paragraph 121B another person may require HMRC to review a matter, HMRC may within the relevant period notify the other person that the relevant period is extended. (3) If notice is given the relevant period is extended to the end of 30 days from— (a) the date of the notice, or (b) any other date set out in the notice or a further notice. (4) In this paragraph “relevant period” means— (a) the period of 30 days referred to in— (i) paragraph 121C(1)(b) (in a case falling within sub-paragraph (1)), or (ii) paragraph 121B(2) (in a case falling within sub-paragraph (2)), or (b) if notice has been given under sub-paragraph (1) or (2), that period as extended (or as most recently extended) in accordance with sub-paragraph (3). (121E) (1) This paragraph applies if— (a) HMRC have offered a review of a decision under paragraph 121A and P does not accept the offer within the time allowed under paragraph 121C(1)(b) or 121D(3); or (b) a person who requires a review under paragraph 121B does not notify HMRC within the time allowed under that paragraph or paragraph 121D(3). (2) HMRC must review the decision under paragraph 121C if— (a) after the time allowed, P, or the other person, notifies HMRC in writing requesting a review out of time, (b) HMRC are satisfied that P, or the other person, had a reasonable excuse for not accepting the offer or requiring review within the time allowed, and (c) HMRC are satisfied that P, or the other person, made the request without unreasonable delay after the excuse had ceased to apply. (3) HMRC shall not review a decision if P, or another person, has appealed to the appeal tribunal under paragraph 121G in respect of the decision. (121F) (1) This paragraph applies if HMRC are required to undertake a review under paragraph 121C or 121E. (2) The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances. (3) For the purpose of sub-paragraph (2), HMRC must, in particular, have regard to steps taken before the beginning of the review— (a) by HMRC in reaching the decision, and (b) by any person in seeking to resolve disagreement about the decision. (4) The review must take account of any representations made by P, or the other person, at a stage which gives HMRC a reasonable opportunity to consider them. (5) The review may conclude that the decision is to be— (a) upheld, (b) varied, or (c) cancelled. (6) HMRC must give P, or the other person, notice of the conclusions of the review and their reasoning within— (a) a period of 45 days beginning with the relevant date, or (b) such other period as HMRC and P, or the other person, may agree. (7) In sub-paragraph (6) “relevant date” means— (a) the date HMRC received P’s notification accepting the offer of a review (in a case falling within paragraph 121A), or (b) the date HMRC received notification from another person requiring review (in a case falling within paragraph 121B), or (c) the date on which HMRC decided to undertake the review (in a case falling within paragraph 121E). (8) Where HMRC are required to undertake a review but do not give notice of the conclusions within the time period specified in sub-paragraph (6), the review is to be treated as having concluded that the decision is upheld. (9) If sub-paragraph (8) applies, HMRC must notify P, or the other person of the conclusion which the review is treated as having reached. (121G) (1) An appeal under paragraph 121 is to be made to the appeal tribunal before— (a) the end of the period of 30 days beginning with— (i) in a case where P is the appellant, the date of the document notifying the decision to which the appeal relates, or (ii) in a case where a person other than P is the appellant, the date that person becomes aware of the decision, or (b) if later, the end of the relevant period (within the meaning of paragraph 121D). (2) But that is subject to sub-paragraphs (3) to (5). (3) In a case where HMRC are required to undertake a review under paragraph 121C— (a) an appeal may not be made until the conclusion date, and (b) any appeal is to be made within the period of 30 days beginning with the conclusion date. (4) In a case where HMRC are requested to undertake a review by virtue of paragraph 121E— (a) an appeal may not be made— (i) unless HMRC have decided whether or not to undertake a review, and (ii) if HMRC decide to undertake a review, until the conclusion date; and (b) any appeal is to be made within the period of 30 days beginning with— (i) the conclusion date (if HMRC decide to undertake a review), or (ii) the date on which HMRC decide not to undertake a review. (5) In a case where paragraph 121F(8) applies, an appeal may be made at any time from the end of the period specified in paragraph 121F(6) to the date 30 days after the conclusion date. (6) An appeal may be made after the end of the period specified in sub-paragraph (1), (3)(b), (4)(b) or (5) if the appeal tribunal gives permission to do so. (7) In this paragraph “conclusion date” means the date of the document notifying the conclusions of the review.

290

• (1) Paragraph 122 is amended as follows.

• (2) For the heading substitute “Appeals: further provisions”.

• (3) Omit sub-paragraph (1).

• (4) For sub-paragraph (2) substitute—

(2) Subject to sub-paragraphs (2A) and (2B), where an appeal relates to a decision (whether or not contained in an assessment) that an amount of levy is due from any person, it shall not be entertained unless the amount which HMRC have determined to be due has been paid or deposited with them.

• (5) After sub-paragraph (2) insert—

(2A) In a case where the amount determined to be payable as levy has not been paid or deposited an appeal shall be entertained if— (a) HMRC are satisfied (on the application of the appellant), or (b) the appeal tribunal decides (HMRC not being so satisfied and on the application of the appellant), - that the requirement to pay or deposit the amount determined would cause the appellant to suffer hardship. (2B) Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007, the decision of the appeal tribunal as to the issue of hardship is final.

291

• (1) Paragraph 123 is amended as follows.

• (2) In sub-paragraph (1)—

• (a) for “122” substitute “121”; and

• (b) in paragraph (a) omit “made, confirmed or treated as confirmed by the Commissioners on a review under paragraph 121 (“the original assessment”)”.

• (3) In sub-paragraph (2)—

• (a) for “122” substitute “121”; and

• (b) in paragraph (b)—

• (i) after “tribunal,” insert “a review or”; and

• (ii) after “decision” insert “as appropriate”.

• (4) In sub-paragraph (3) for “122” substitute “121”.

• (5) In sub-paragraph (4)—

• (a) for the first occurrence of “122” substitute “121”; and

• (b) for “at such rate as the appeal tribunal may determine” substitute “at the rate applicable under section 197 of the Finance Act 1996”.

• (6) In sub-paragraph (5)—

• (a) for “122” substitute “121”; and

• (b) for “at such rate as the appeal tribunal may determine” substitute “at the rate applicable under section 197 of the Finance Act 1996”.

• (7) In sub-paragraph (6)—

• (a) in paragraph (a) for “122” substitute “121”; and

• (b) for the words after paragraph (b) substitute—

• it shall be paid with interest at the rate applicable under section 197 of the Finance Act 1996

• (8) After sub-paragraph (6) insert—

(6A) Interest under sub-paragraph (6) shall be paid without any deduction of income tax.

• (9) For sub-paragraph (7) substitute—

(7) Sections 85 and 85B of the Value Added Tax Act 1994 (settling of appeals by agreement and payment of tax where there is a further appeal)¹⁵⁴ shall have effect as if— (a) the references to section 83 of that Act included references to paragraph 121 above, and (b) the references to value added tax included references to climate change levy.

292

• (1) Paragraph 147 (interpretation) is amended as follows.

• (2) In the definition of “appeal tribunal”, for “a VAT and duties tribunal” substitute “the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal;”.

• (3) After the definition of “gas utility” insert—

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

293

• (1) Schedule 15 (the corporate venturing scheme) is amended as follows.

• (2) in paragraph 91—

• (a) in sub-paragraph (4) for “Special Commissioners” substitute “tribunal”; and

• (b) in sub-paragraph (5) for “Special Commissioners that they are” substitute “tribunal that it is”.

• (3) In paragraph 92(2)(a) for “Special Commissioners” substitute “tribunal”.

294

• (1) Schedule 22 (tonnage tax) is amended as follows.

• (2) In paragraph 43(1) for “lies to the Special Commissioners” substitute “may be made”.

• (3) In paragraph 126(5)(b) for “lies to the Special Commissioners” substitute “may be made”.

295

• (1) Schedule 38 (regulations for providing incentives for electronic communications) is amended as follows.

• (2) In paragraph 4(3) after “assessments,” insert “reviews,”.

Freedom of Information Act 2000

296

In Schedule 1 to the Freedom of Information Act 2000¹⁵⁵ (public authorities)—

• (a) in Part 6 (other public bodies and offices: general) omit “An Advisory Committee on General Commissioners of Income Tax”; and

• (b) in Part 7 (other public bodies and offices: Northern Ireland) omit “An Advisory Committee on General Commissioners of Income Tax (Northern Ireland)”.

Capital Allowances Act 2001

297

The Capital Allowances Act 2001¹⁵⁶ is amended as follows.

298

• (1) Section 204 (appeals etc) is amended as follows.

• (2) In subsection (2) for “Special Commissioners” substitute “tribunal”.

• (3) For subsection (3) substitute—

(3) An application for the tribunal to determine the question is to be subject to the relevant provisions of Part 5 of the Taxes Management Act 1970 (see, in particular, section 48(2)(b) of that Act), and each of the persons concerned is entitled to be a party to the proceedings on the application.

• (4) In subsection (4)—

• (a) for “any body of Commissioners” substitute “the tribunal”; and

• (b) for “them” substitute “it”.

• (5) In subsection (5) for “Commissioners” substitute “tribunal”;

• (6) For subsection (6) substitute—

(6) Each of the persons who has joined in the election is entitled to be a party to the proceedings of the tribunal concerned with the determination of the question; and the tribunal’s determination has effect as if made in an appeal to which each of those persons was a party.

299

• (1) Section 563 (procedure for determining certain questions affecting two or more persons) is amended as follows.

• (2) Omit subsections (2) to (5).

• (3) For subsection (6) substitute—

(6) An application for the tribunal to determine the question is to be subject to the relevant provisions of Part 5 of the Taxes Management Act 1970 (see, in particular, section 48(2)(b) of that Act), and each of the persons concerned is entitled to be a party to the proceedings on the application.

300

Omit paragraph 5 of Schedule 2.

301

• (1) Paragraph 91 of Schedule 3 (disposal of oil licences) is amended as follows.

• (2) In sub-paragraph (5)—

• (a) for “the Special Commissioners are” substitute “the tribunal is”; and

• (b) for “they” substitute “the tribunal”.

• (3) For sub-paragraph (6) substitute—

(6) An application for the tribunal to determine the question is to be subject to the relevant provisions of Part 5 of the Taxes Management Act 1970 (see, in particular, section 48(2)(b) of that Act), and each of the persons concerned is entitled to be a party to the proceedings on the application.

Finance Act 2001

302

The Finance Act 2001¹⁵⁷ is amended as follows.

303

• (1) Section 40 (aggregates levy: review of Commissioners’ decisions) is amended as follows.

• (2) For the heading substitute “Appeals”.

• (3) In subsection (1)—

• (a) for “This section applies to any decision of the Commissioners with respect to any of the following matters” substitute “Subject to section 41, an appeal shall lie to an appeal tribunal from any person who is or will be affected by any decision of HMRC with respect to any of the following matters—,”;

• (b) in paragraph (g) for “reviewable” substitute “appealable”;

• (c) in paragraph (l) for “any assessment under this Part” substitute—

(i) an assessment under paragraphs 2 or 3 of Schedule 5 in respect of an accounting period in relation to which any return required to be made by virtue of regulations under section 25 has been made; or (ii) an assessment under any provision of Schedule 5 other than paragraphs 2 or 3.

• (4) Omit subsections (2) to (9).

304

After section 40 insert—

(40A) (1) HMRC must offer a person (P) a review of a decision that has been notified to P if an appeal lies under section 40 in respect of the decision. (2) The offer of the review must be made by notice given to P at the same time as the decision is notified to P. (3) This section does not apply to the notification of the conclusions of a review. (40B) (1) Any person (other than P) who has the right of appeal under section 40 against a decision may require HMRC to review that decision if that person has not appealed to the appeal tribunal under section 40G. (2) A notification that such a person requires a review must be made within 30 days of that person becoming aware of the decision. (40C) (1) HMRC must review a decision if— (a) they have offered a review of the decision under section 40A, and (b) P notifies HMRC accepting the offer within 30 days from the date of the document containing the notification of the offer. (2) But P may not notify acceptance of the offer if P has already appealed to the appeal tribunal under section 40G. (3) HMRC must review a decision if a person other than P notifies them under section 40B. (4) HMRC shall not review a decision if P, or another person, has appealed to the appeal tribunal under section 40G in respect of the decision. (40D) (1) If under section 40A, HMRC have offered P a review of a decision, HMRC may within the relevant period notify P that the relevant period is extended. (2) If under section 40B another person may require HMRC to review a matter, HMRC may within the relevant period notify the other person that the relevant period is extended. (3) If notice is given the relevant period is extended to the end of 30 days from— (a) the date of the notice, or (b) any other date set out in the notice or a further notice. (4) In this section “relevant period” means— (a) the period of 30 days referred to in— (i) section 40C(1)(b) (in a case falling within subsection (1)), or (ii) section 40B(2) (in a case falling within subsection (2)), or (b) if notice has been given under subsection (1) or (2), that period as extended (or as most recently extended) in accordance with subsection (3). (40E) (1) This section applies if— (a) HMRC have offered a review of a decision under section 40A and P does not accept the offer within the time allowed under section 40C(1)(b) or 40D(3); or (b) a person who requires a review under section 40B does not notify HMRC within the time allowed under that section or section 40D(3). (2) HMRC must review the decision under section 40C if— (a) after the time allowed, P, or the other person, notifies HMRC in writing requesting a review out of time, (b) HMRC are satisfied that P, or the other person, had a reasonable excuse for not accepting the offer or requiring review within the time allowed, and (c) HMRC are satisfied that P, or the other person, made the request without unreasonable delay after the excuse had ceased to apply. (3) HMRC shall not review a decision if P, or another person, has appealed to the appeal tribunal under section 40G in respect of the decision. (40F) (1) This section applies if HMRC are required to undertake a review under section 40C or 40E. (2) The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances. (3) For the purpose of subsection (2), HMRC must, in particular, have regard to steps taken before the beginning of the review— (a) by HMRC in reaching the decision, and (b) by any person in seeking to resolve disagreement about the decision. (4) The review must take account of any representations made by P, or the other person, at a stage which gives HMRC a reasonable opportunity to consider them. (5) The review may conclude that the decision is to be— (a) upheld, (b) varied, or (c) cancelled. (6) HMRC must give P, or the other person, notice of the conclusions of the review and their reasoning within— (a) a period of 45 days beginning with the relevant date, or (b) such other period as HMRC and P, or the other person, may agree. (7) In subsection (6) “relevant date” means— (a) the date HMRC received P’s notification accepting the offer of a review (in a case falling within section 40A), or (b) the date HMRC received notification from another person requiring review (in a case falling within section 40B), or (c) the date on which HMRC decided to undertake the review (in a case falling within section 40E). (8) Where HMRC are required to undertake a review but do not give notice of the conclusions within the time period specified in subsection (6), the review is to be treated as having concluded that the decision is upheld. (9) If subsection (8) applies, HMRC must notify P or the other person of the conclusion which the review is treated as having reached. (40G) (1) An appeal under section 40 is to be made to the appeal tribunal before— (a) the end of the period of 30 days beginning with— (i) in a case where P is the appellant, the date of the document notifying the decision to which the appeal relates, or (ii) in a case where a person other than P is the appellant, the date that person becomes aware of the decision, or (b) if later, the end of the relevant period (within the meaning of section 40D). (2) But that is subject to subsections (3) to (5). (3) In a case where HMRC are required to undertake a review under section 40C— (a) an appeal may not be made until the conclusion date, and (b) any appeal is to be made within the period of 30 days beginning with the conclusion date. (4) In a case where HMRC are requested to undertake a review by virtue of section 40E— (a) an appeal may not be made— (i) unless HMRC have decided whether or not to undertake a review, and (ii) if HMRC decide to undertake a review, until the conclusion date; and (b) any appeal is to be made within the period of 30 days beginning with— (i) the conclusion date (if HMRC decide to undertake a review), or (ii) the date on which HMRC decide not to undertake a review. (5) In a case where section 40F(8) applies, an appeal may be made at any time from the end of the period specified in section 40F(6) to the date 30 days after the conclusion date. (6) An appeal may be made after the end of the period specified in subsection (1), (3)(b), (4)(b) or (5) if the appeal tribunal gives permission to do so. (7) In this section “conclusion date” means the date of the document notifying the conclusion of the review.

305

• (1) Section 41 (appeals against reviewed decisions) is amended as follows.

• (2) For the heading substitute “Appeals: further provisions”.

• (3) Omit subsection (1).

• (4) For subsection (2) substitute—

(2) Subject to subsections (2A) and (2B), where an appeal under section 40 relates to a decision (whether or not contained in an assessment) that an amount of aggregates levy is due from any person, it shall not be entertained unless the amount which HMRC have determined to be due has been paid or deposited with them.

• (5) After subsection (2) insert—

(2A) In a case where the amount determined to be payable as aggregates levy has not been paid or deposited an appeal shall be entertained if— (a) HMRC are satisfied (on the application of the appellant), or (b) the appeal tribunal decides (HMRC not being so satisfied and on the application of the appellant), - that the requirement to pay or deposit the amount determined would cause the appellant to suffer hardship. (2B) Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007, the decision of the appeal tribunal as to the issue of hardship is final.

• (6) In section 41(3) for “under this section” substitute “under section 40”.

306

• (1) Section 42 (determinations on appeal) is amended as follows.

• (2) In subsection (1)—

• (a) for “41” substitute “40”; and

• (b) in paragraph (a) omit “made, confirmed or treated as confirmed by the Commissioners on a review under section 40 above (“the original assessment”)”.

• (3) In subsection (2)—

• (a) for “41” substitute “40”; and

• (b) in paragraph (b)—

• (i) after “tribunal,” insert “a review or”; and

• (ii) after “decision” insert “as appropriate”.

• (4) In subsection (3) for “41” substitute “40”.

• (5) In subsection (4)—

• (a) for the first occurrence of “41” substitute “40”; and

• (b) for “at such rate as the tribunal shall determine” substitute “at the rate applicable under section 197 of the Finance Act 1996”.

• (6) In subsection (5)—

• (a) for “41” substitute “40”; and

• (b) for “at such rate as the tribunal shall determine” substitute “at the rate applicable under section 197 of the Finance Act 1996”.

• (7) In subsection (6)—

• (a) in paragraph (a) for “41” substitute “40”,

• (b) for the words after paragraph (b) substitute—

• it shall be paid with interest at the rate applicable under section 197 of the Finance Act 1996

• (8) After subsection (6) insert—

(6A) Interest under subsection (6) shall be paid without any deduction of income tax.

• (9) For subsection (7) substitute—

(7) Sections 85 and 85B of the Value Added Tax Act 1994 (settling of appeals by agreement and payment of tax where there is a further appeal)¹⁵⁸ shall have effect as if— (a) the references to section 83 of that Act included references to section 40 above, and (b) the references to value added tax included references to aggregates levy.

307

• (1) Section 48 (interpretation of part) is amended as follows.

• (2) In the definition of “appeal tribunal” for “a VAT and duties tribunal” substitute “the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal;”.

• (3) After the definition of “gravel” insert—

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

308

For paragraph 14(4) of Schedule 3 (appeals) substitute—

(4) The rate of interest is the rate applicable under section 197 of the Finance Act 1996.

309

• (1) Paragraph 8 of Schedule 6 (aggregates levy: evasion, misdeclaration and neglect) is amended as follows.

• (2) In sub-paragraph (5) for “reviewed under section 40” substitute “appealed under section 40”.

• (3) In sub-paragraph (6)—

• (a) for “reviewed in accordance with section 40” substitute “appealed under section 40”; and

• (b) for “41 and 42” substitute “40A to 42”.

• (4) In sub-paragraph (7)—

• (a) for “reviewed under section 40” substitute “appealed under section 40”; and

• (b) for “41 and 42” substitute “40A to 42”.

310

Omit paragraph 2 of Schedule 24.

311

Omit paragraphs 27 and 28 of Schedule 29.

Tax Credits Act 2002

312

The Tax Credits Act 2002¹⁵⁹ is amended as follows.

313

For section 19(10) (power to enquire) substitute—

(10) Any such application is to be subject to the relevant provisions of Part 5 of the Taxes Management Act 1970 (see, in particular, section 48(2)(b) of that Act), and the tribunal must give the direction applied for unless satisfied that the Board have reasonable grounds for not making the decision or giving the notice.

314

• (1) Section 39 (exercise of right of appeal) is amended as follows.

• (2) Omit subsections (3), (4) and (5).

• (3) In subsection (6) for “(appeals to Commissioners)” substitute “(appeals and other proceedings)”.

• (4) Omit subsection (7).

315

In section 48(1) (interpretation) omit the definitions of “the General Commissioners” and “the Special Commissioners”.

316

• (1) Section 63 (tax credit appeals etc: temporary modifications)¹⁶⁰ is amended as follows.

• (2) For subsection (2) substitute—

(2) Except in the case of an appeal against an employer penalty, an appeal under section 38 is to— (a) in Great Britain, the First-tier Tribunal; or (b) in Northern Ireland, the appeal tribunal; - and in either case section 39(6) shall not apply.

• (3) For subsection (3) substitute—

(3) The function of giving a direction under section 19(10) is a function of— (a) in Great Britain, the First-tier Tribunal; or (b) in Northern Ireland, the appeal tribunal; - and in either case the relevant provisions of Part 5 of the Taxes Management Act 1970 shall not apply.

• (4) For subsection (4) substitute—

(4) In Northern Ireland, except in the case of an employer information penalty, proceedings under paragraph 3 of Schedule 2 are by way of information in writing, made to the appeal tribunal (rather than to the tribunal), and upon summons issued by them to the defendant to appear before them at a time and place stated in the summons; and they must hear and decide each case in a summary way.

• (5) In subsection (5)—

• (a) in paragraph (a)—

• (i) for “General Commissioners or Special Commissioners in sections 19(10) and 39(5)” substitute “tribunal in section 19(10)”;

• (ii) for “appropriate tribunal” substitute “appeal tribunal”;

• (iii) omit “and”; and

• (b) omit paragraph (b).

• (6) For subsection (6) substitute—

(6) In Northern Ireland, an appeal under paragraph 2(2) or 4(1) of Schedule 2 from a decision of, or against the determination of a penalty by, the appeal tribunal lies to the Northern Ireland Social Security Commissioner (rather than to the Upper Tribunal).

• (7) In subsection (7) for “to the High Court and the Court of Session are to the Upper Tribunal or a Northern Ireland Social Security Commissioner” substitute “to the Upper Tribunal are to the Northern Ireland Social Security Commissioner”.

• (8) In subsection (8) for “appropriate tribunal or lie to the Upper Tribunal or” substitute “appeal tribunal or lie to”.

• (9) Omit subsection (9).

• (10) For subsection (10) substitute—

(10) “Appeal tribunal” means an appeal tribunal constituted under Chapter 1 of Part 2 of the Social Security (Northern Ireland) Order 1998.

• (11) After subsection (13) insert—

(14) “tribunal” (other than in the expression “appeal tribunal”) shall have the meaning in section 47C of the Taxes Management Act 1970.

317

Schedule 2 (penalties: supplementary) is amended as follows.

318

• (1) Paragraph 2 is amended as follows—

• (2) In sub-paragraph (1)—

• (a) omit “to them”;

• (b) for “paragraph 1, the General Commissioners or Special Commissioners” substitute “paragraph 1 that is notified to the First-tier tribunal, the tribunal”; and

• (c) in sub-paragraphs (1)(c) and (d) for “they consider” substitute “the First-tier Tribunal considers”.

• (3) For sub-paragraph (2) substitute—

(2) In addition to any right of appeal on a point of law under section 11(2) of the Tribunals, Courts and Enforcement Act 2007, the person liable to the penalty may appeal to the Upper Tribunal against the amount of the penalty which has been determined under sub-paragraph (1), but not against any decision which falls under section 11(5)(d) or (e) of that Act and was made in connection with the determination of the amount of the penalty. (2A) Section 11(3) and (4) of the Tribunals, Courts and Enforcement Act 2007 applies to the right of appeal under sub-paragraph (2) as it applies to the right of appeal under section 11(2) of that Act. (2B) On an appeal under this paragraph the Upper Tribunal has the same powers as are conferred on the First-tier Tribunal by virtue of this paragraph.

319

• (1) Paragraph 3 is amended as follows.

• (2) In the heading for “Commissioners” substitute “tribunal”.

• (3) In sub-paragraph (1) after “section 32(2)(a)” insert “before the tribunal”.

• (4) For sub-paragraph (2) substitute—

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

• (5) After sub-paragraph (2) insert—

(3) “tribunal” is to be read in accordance with section 47C of the Taxes Management Act 1970.

320

• (1) Paragraph 4 is amended as follows.

• (2) For sub-paragraph (1) substitute—