The Revenue and Customs (Complaints and Misconduct) (Amendment) Regulations 2025

(1) This regulation applies where, in the case of any investigation— (a) the appropriate authority has given, or is required to give, a notification under regulation 68(12) (action by the appropriate authority in response to an investigation report under regulation 66) of the action it is proposing to take in relation to the matters dealt with in any report of the investigation, or (b) the Director General has given the appropriate authority a direction under regulation 67(10B) (action by the Director General in response to an investigation report under regulation 66) or regulation 74(8B) (reviews by the Director General with respect to an investigation).

• (b) in paragraph (2)—

• (i) for “under this regulation” substitute “under regulation 67, 68 or 74”;

• (ii) for sub-paragraph (a) substitute—

(a) to take the action which has been, or is required to be, set out in the notification or direction, and

• (c) omit paragraphs (3) to (8);

• (d) for paragraph (9) substitute—

(9) The appropriate authority must keep the Director General informed of whatever action it takes in pursuance of its duty under paragraph (2).

Amendment of the heading of Part 9

57

In the heading of Part 9 for “Appeals” substitute “Reviews by the Director General”.

Omission of regulation 73

58

Omit regulation 73 (appeals to the Director General: failures to notify or record a complaint).

Amendment to regulation 74

59

In regulation 74 (appeals to the Director General with respect to an investigation)—

• (a) in the heading for “Appeals to” substitute “Reviews by”;

• (b) for paragraphs (1) to (6) substitute—

(1) This regulation applies where a complaint has been subjected to an investigation by the appropriate authority on its own behalf. (2) Where this regulation applies, the complainant has the right to apply to the Director General for a review of the outcome of the complaint. (3) The Director General must notify the following of an application for a review under paragraph (2)— (a) the appropriate authority, (b) every person entitled to be kept properly informed in relation to the complaint under regulation 55, and (c) the person complained against, (if any) unless it appears to the Director General that to do so might prejudice any proposed review or re-investigation of the complaint. (4) Where the Director General so requires on the making of an application for a review under paragraph (2), the appropriate authority must provide the Director General with— (a) a copy of the report of the investigation, and (b) such information concerning the authority's determinations under regulation 68 as is described in a notification given by the Director General to the authority. (5) On a review applied for under paragraph (2), the Director General must determine whether the outcome of the complaint is a reasonable and proportionate outcome. (6) In making a determination under paragraph (5), the Director General may review the findings of the investigation.

• (c) omit paragraph (7);

• (d) for paragraph (8) substitute—

(8) Where, following a review under this regulation, the Director General finds that the outcome of the investigation is not a reasonable and proportionate outcome, the Director General may— (a) make the Director General’s own findings (in place of, or in addition to, findings of the investigation); (b) direct that the complaint be re-investigated; (c) make a recommendation to the appropriate authority in respect of any person— (i) that the person has a case to answer in respect of their conduct or has no case to answer in relation to the person’s conduct to which the investigation related; (ii) that disciplinary proceedings are brought against the person in respect of the person’s conduct to which the investigation related; (iii) that any disciplinary proceedings brought against that person are modified so as to deal with such aspects of that conduct as may be so specified; (d) make a recommendation under regulation 70B. (8A) Where the Director General makes a recommendation under paragraph (8)(c), the appropriate authority must notify the Director General whether it accepts the recommendation and (if it does) set out in the notification the steps that it is proposing to take to give effect to it. (8B) If, after the Director General has made a recommendation under paragraph (8)(c), the appropriate authority does not take steps to secure that full effect is given to that recommendation, the Director General may direct the appropriate authority to take steps for that purpose. (8C) A direction under paragraph (8B) may, to such extent as the Director General thinks fit, set out the steps to be taken by the appropriate authority in order to give effect to the recommendation. (8D) Where the Director General gives the appropriate authority a direction under this regulation, the Director General must supply the appropriate authority with a statement of the Director General’s reasons for doing so. (8E) The Director General may at any time withdraw a direction given under paragraph (8B) and thereafter regulation 71 (duties with respect to disciplinary proceedings) ceases to apply in relation to the withdrawn direction.

• (e) omit paragraph (9);

• (f) in paragraph (10) for “on an appeal” substitute “following a review”;

• (g) in paragraph (14)—

• (i) for “appeal” substitute “application for a review”;

• (ii) for “28 days of the date”, substitute “a period of 28 days beginning with the day after the day”;

• (h) in paragraph (15) for “appeal”, in both places it occurs, substitute “application for a review”;

• (i) for paragraph (16) substitute—

(16) Where the Director General receives such an application for a review, the Director General must request any information from any person which the Director General considers necessary to dispose of the review. (16A) Where the Director General makes a request for information, regulation 48A(2) (limitation on information notices) applies to that request as it applies to an information notice served under that regulation.

• (j) in paragraph (17) for “appeal” substitute “application for a review”;

• (k) in paragraph (19) for “appeal” substitute “review”.

Amendment to regulation 75

60

In regulation 75 (reviews and re-investigations following an appeal)—

• (a) for the heading substitute “Re-investigations following a review by the Director General”;

• (b) omit paragraph (1);

• (c) in paragraph (2) omit “or paragraph (1)”;

• (d) in paragraph (4) for “74(9) or paragraph (1)” substitute “74(8)”.

• (e) after paragraph (6) insert—

(7) Regulation 60 has effect in relation to the duties imposed by paragraphs (5) and (6) of this regulation.

Signed

Jeff Smith — Anna Turley — Two of the Lords Commissioners of His Majesty’s Treasury — 17th June 2025

Explanatory note

(This note is not part of the Regulations)

Explanatory Note

These Regulations amend the Revenue and Customs (Complaints and Misconduct) Regulations 2010 (“the principal Regulations”) which govern the recording, handling and investigating of complaint, conduct matters and death and serious injury matters in relation to His Majesty’s Revenue and Customs (“HMRC”) and confer oversight functions in respect of the same on the Independent Office for Police Conduct (“IOPC”).

The amendments made to the principal Regulations:

• reflect legislative reform made in respect of police complaints and misconduct by the Policing and Crime Act 2017 (amending the Police Reform Act 2002) and the Police (Complaints and Misconduct) Regulations 2020 (S.I. 2020/2) insofar as is appropriate to maintain alignment and consistency of the IOPC’s oversight function,

• focus IOPC’s oversight to HMRC officers and Commissioners acting in connection with the exercise of their duties and, for the mandatory referral for matters not relating to death or serious injury, whose conduct relates to the performance of a “specified enforcement activity”, and

• reflect recent changes to HMRC’s organisational structure.

HMRC structural changes

Regulation 3(a) amends regulation 3 of the principal Regulations to amend the definition of “appropriate authority” and “the Commissioners”, and to add a definition of “a Permanent Secretary”. This is to take account of the revised structuring of the organisation of HMRC which in turn has led to a revision in the structure of the appropriate authority in relation to HMRC complaints and misconduct matters. Regulations 9, 16(b), 19(d)(i), 33 and 46(a)(ii) makes similar amendments to regulations 18, 28, 30, 44 and 60 of the principal Regulations.

Focused IOPC oversight

Referral of matters by HMRC for IOPC oversight

Regulations 16(a)(i) and 19(a)(i) amend regulations 28(1) and 30(1) of the principal Regulations, respectively. The duties of an appropriate authority to refer a complaint or a conduct matter to the Director General of the IOPC are amended so that they are only capable of arising in cases concerning the conduct of a Commissioner or officer of HMRC acting in connection with the exercise of their duties.

Regulations 16(a)(ii) and 19(b) amend regulations 28(1)(b) and 30(2) of the principal Regulations, respectively. The result is that a complaint or conduct matter, not related to death or serious injury, is subject to mandatory referral if it relates to the performance of a “specified enforcement activity” (see below) as well as meeting the descriptions in regulation 28(1)(b)(i)-(v) (for complaints) and regulation 30(2)(a)-(f) (for conduct matters).

Regulations 16(a)(iii) and 19(a)(ii) amend regulations 28(1)(d) and 30(1)(c) of the principal Regulations, respectively. The power of the Director General to call for any complaint or conduct matter to be referred to the Director General for the Director General’s consideration is replaced with a power to call for complaints or conduct matters alleging conduct of a kind described by regulation 28(1)(a) or (b) (for complaints) or regulation 30(1)(a) or (b) (for conduct matters) to be referred.

Regulations 16(c) and (d) and 19(c) and (d) amend regulations 28(4) and (5) and 30(5) and (6) of the principal Regulations, respectively. The ability to voluntarily refer a complaint or conduct matter to the Director General of the IOPC is similarly linked to matters concerning the exercise of a duty and, in the case of serious injury, the performance of a specified enforcement activity.

Meaning of ”specified enforcement activity”

Regulation 16(f) inserts new regulation 28(11) into the principal Regulations to provide the definition of “specified enforcement activity”. It means:

• (a) an activity carried out for the purpose of, or in connection with, a “criminal investigation” (as also defined by new paragraph (11)); and

• (b) in all other cases, an activity which is, or is connected with, the exercise of the listed powers, available to HMRC during civil investigations (including powers of entry, search and seizure of property and provision of information) and includes activities carried out in connection with authorisations granted under the Regulation of Investigatory Powers Act 2000.

Regulation 19(f) inserts new regulation 30(11) into the principal Regulations which extends this definition to uses of the term in that regulation.

Reflecting legislative reform for police complaints and misconduct

Handling of sensitive information

Regulation 8 inserts new regulation 14A into the principal Regulations. New regulation 14A sets out that where the Director General receives sensitive information, defined at paragraph (3), the Director General must not disclose the information or the fact that it has been received unless the relevant authority (as defined in paragraph (6)) consents to disclosure. The restriction also applies to an investigator appointed under regulation 46 or 47 of the principal Regulations. New regulation 14A(5) places a duty on the person providing sensitive information to make the Director General or the investigator aware that the information is intelligence service information or protected information (as defined in paragraph (6)). Regulation 54 makes consequential amendments to regulation 69 of the principal Regulations to allow for redacted reports to be provided so new regulation 14A is not contravened.

Efficiency of complaints handling, recording and notifications

Regulation 10 amends regulation 19 of the principal Regulations. It removes the requirement for the Director General to obtain the consent of a complainant before notifying the appropriate authority that a complaint has been received, and replaces it with a requirement to notify the appropriate authority unless there are exceptional circumstances to justify the notification not being given - new paragraphs (1) and (1A). It also removes the exception to the duty to record complaints where the subject matter of the complaint has been, or is already being, dealt with by criminal or disciplinary proceedings. As a result, all complaints must be recorded by the appropriate authority unless the complaint is withdrawn. It also creates a new duty requiring the appropriate authority to notify a complainant that their complaint has been recorded - new paragraph (5A). Because of the new recording requirements, regulation 12 omits regulation 21 of the principal Regulations (appeal against the non-recording of a complaint) and regulation 58 omits regulation 73 of the principal Regulations (appeals to the Director General: failures to notify or record a complaint). Consequentially, regulations 6(a) and 32(a) make amendments to regulation 9 and regulation 43 of the principal Regulations to reflect the omission of regulation 19(3) and regulation 21.

Regulation 11 amends regulation 20 of the principal Regulations so that the Director General may also determine the form that an appropriate authority’s record of a conduct matter covered by regulation 24 (conduct matters in other cases), must take. As a result, regulation 14(b) omits regulation 24(6) of the principal Regulations. A similar amendment is made by regulation 22 which omits regulation 32(2) of the principal Regulations.

Regulation 13 amends regulation 22(2) of the principal Regulations to provide that when the appropriate authority handles a complaint, it must do so in a reasonable and proportionate manner. Regulation 18(a) makes similar provision in respect of regulation 29(3) of the principal Regulations which applies to the Director General’s handling of complaints referred by HMRC.

Regulation 18(b) amends regulation 29(4) of the principal Regulations so that, in cases where the Director General decides it is not necessary for a complaint to be investigated by the Director General and refers the complaint back to the appropriate authority, the Director General is not required to give notice of that referral to the person complained about if it might prejudice an existing or potential investigation of the complaint. A similar amendment is also made by regulation 21 to regulation 31(3)(b) of the principal Regulations.

Widening of the meaning of “serious corruption” for complaints and conduct matters

Regulation 14(a) amends regulation 24 of the principal Regulations to specify that “serious corruption” includes abuse of position for a sexual purpose or the purpose of pursuing an improper emotional relationship. This reflects amendments to the equivalent legislation governing the IOPC’s oversight of the police. Regulations 16 and 19 make similar amendment to regulation 28 and 30 of the principal Regulations.

New power of initiative enabling IOPC to treat a complaint or conduct matter as referred

Regulation 17 inserts new regulation 28A into the principal Regulations which provides the Director General of the IOPC with the power to initiate an investigation into a complaint that has not been referred by HMRC. Regulations 20 and 23 insert similar regulations 30A and 34A to the principal Regulations in respect of conduct matters and Death or Serious Injury (“DSI”) matters respectively. Regulations 16(e) and 19(e) make consequential updates to regulations 28 and 30 of the principal Regulations to reflect the addition of new regulations 28A and 30A, respectively. Regulation 47 also makes a consequential change to regulation 61 of the principal Regulations to extend the obligation, to supply a copy of the record made of a complaint, to complaints recorded under new regulation 28A.

Conducting investigations

Regulation 26 amends regulation 38 of the principal Regulations to amend and streamline the forms of investigation available. Supervised investigations are removed, and managed investigations become directed investigations. It also introduces a new presumption that an investigation by the appropriate authority on its own behalf will be the appropriate form of investigation, unless the seriousness of the case or other public interest is such that another form of investigation is required. In such a case the investigation will be by the Director General unless a Director General directed investigation is more appropriate. In cases where the investigation is being directed by the Director General, the Director General is required to keep the decision, as to the form of investigation, under review. A further notification requirement is added requiring the Director General to notify interested parties identified in the regulation of the decisions made about the form of investigation. As a consequence:

• regulations 29 and 34 omit regulations 40 (power of the Director General to impose requirements in relation to an investigation which it is supervising) and 45 (investigations supervised by the Director General) of the principal Regulations, and

• regulations 3(b), 7(c), 24(a) and (d), 25(a), 27, 30, 35, 36, 38, 39, 42, 43, 45(a), 50, 51, 52, 53 and 56 make amendments to regulations 3, 12, 36, 37, 39, 41, 46, 47, 49, 50, 54, 55, 59, 64, 66, 67, 68 and 71 of the principal Regulations respectively to reflect the updated forms of investigation and the subsequent omission of regulations 40 and 45.

Regulation 36 also amends regulation 47 of the principal Regulations to include a process for the selection and approval of a person to be appointed to carry out a directed investigation.

Regulation 24(b), (c) and (e) also amends regulation 36 of the principal Regulations which applies to directed investigations into DSI matters. Under new paragraph (2ZA), the Director General must notify the appropriate authority if the Director General determines that there is an indication that the person being investigated may have committed a criminal offence or has behaved in a way which would justify the bringing of disciplinary proceedings. This new duty applies without the requirement for the person carrying out a directed investigation to make a submission to the Director General (under paragraph (1)) or for the Director General to have considered that submission (under paragraph (2)).

Regulation 28 inserts new regulation 39A into the principal Regulations which requires the investigating authority to provide the information identified, including information relating to the estimated time it will take to submit the final report, when an investigation is not completed within a defined relevant period.

Regulation 31 omits regulation 42 of the principal Regulations and, as a consequence, the investigator is required to complete and submit an investigation report in all cases, even those which are discontinued. As a consequence, regulations 7(b) and 41 amend regulations 12 and 52 of the principal Regulations, respectively, to remove rules dealing with discontinued investigations.

Regulation 32(c) amends regulation 43 of the principal Regulations to update the time period for an appropriate authority to wait until treating a matter as withdrawn by the complainant. Regulation 40 substitutes regulation 51 of the principal Regulations and includes a new requirement for the Director General or the appropriate authority to write to the complainant to establish their views when related criminal proceedings have been concluded. Similar time periods are introduced for a complainant to make representations relating to the resumption of an investigation after criminal proceedings.

New power for IOPC to issue information notices

Regulation 37 inserts new regulations 48A to 48C into the principal Regulations. New regulation 48A confers a new power for the Director General of the IOPC to serve an information notice on any person, requiring that person to provide the Director General with information that is reasonably required for the purposes of an investigation being carried out by the Director General. It also sets out what an information notice may not require a person to do or provide (paragraph (2)), what the notice must specify including the time period for compliance and a right of appeal (paragraph (3)), and cancellation of the notice by the Director General. New regulation 48B sets out the consequences for failure to comply with a regulation 48A information notice, which can lead to inquiry by the High Court and dealing with the person as if they had committed contempt of court. New regulation 48C sets out a right of appeal against the service of a information notice, and the actions the First-tier Tribunal can take.

Amendments to existing requirements to provide information

Regulation 44 amends regulation 56 of the principal Regulations. It inserts new paragraph (2A) which fixes the time limits for the person whose conduct is being investigated to respond to a notice given under regulation 56(1). New paragraphs (2B), (2C) and (3A) deal with the provision of the terms of reference of the investigation, or an explanation of why terms of reference of the investigation are not being provided, to be given to that person.

Regulation 45(b) omits regulation 59(8) of the principal Regulations. It removes a discretion given to the Director General, and the appropriate authority, to determine when a progress notification should be made in cases where there has been minimal or no progress since the last update.

Regulation 46(a)(i), (b) and (c) update regulation 60 of the principal Regulations which deals with exceptions to duties to keep certain people informed during investigations. New paragraph (1A) is added to set out the duties which are subject to the exception and expands the list (previously set out in paragraph (1)) to includes new duties added by these Regulations. Paragraph (5)(a) and (b) of regulation 60, which deals with exceptions related to disciplinary proceedings, is also updated to include appeals against such proceedings.

Final reports on investigations

Regulation 52 amends regulation 67 of the principal Regulations to replace the power of the Director General of the IOPC to make a recommendation (in respect of whether an officer has a disciplinary case to answer and whether there should be disciplinary proceedings) with a power to make a determination in respect of such matters, having first consulted with the appropriate authority, and to issue directions. Regulations 15, 48(b) and 56 make consequential amendments to regulations 26, 62 and 71 of the principal Regulations to include references to determinations made by the Director General under regulation 67.

Regulation 52 also amends regulation 67 of the principal Regulations to add a requirement to provide a copy of the final report, or relevant parts of the final report to a person whose conduct was the subject of the investigation, if it is determined by the Director General that no disciplinary proceedings are to be brought. A copy of the final report, or part of it, can be withheld or redacted so new regulation 14A is not contravened. Equivalent amendments are made by regulation 53 to regulation 68 of the principal Regulations, in relation to determinations made by the appropriate authority.

Power to require re-investigation

Regulation 55 inserts new regulations 70A to 70D into the principal Regulations.

New regulation 70A provides a power for the Director General of the IOPC to require a matter that has been investigated to be re-investigated. The re-investigation takes the form directed by the Director General. As a consequence, regulation 52(b) amends regulation 67 of the principal Regulations to provide that a determination under that regulation will not be made if there is to be a re-investigation.

New regulation 70B provides a power for the Director General of the IOPC to make a non-disciplinary recommendation to the appropriate authority following an IOPC or directed investigation into a complaint or a review, with a view to remedying that complaint. This may be any kind of recommendation, other than compensation, which the Director General considers appropriate to remedy the complaint, for example an apology.

New regulation 70C provides a power for the Director General of the IOPC to make recommendations in relation to any matter dealt with in an IOPC or directed investigation, or an IOPC review. Any such recommendations are to be published and new regulation 70D provides a framework for responding to recommendations and the publication of such responses.

Reviews of investigations

Regulation 59 amends regulation 74 of the principal Regulations, which governs what recourse a complainant has if the complainant remains dissatisfied with the outcome of any complaint investigated by the appropriate authority on its own behalf. It provides for a single right of review of the outcome of the complaint, under which the Director General of the IOPC may determine whether the outcome was reasonable and proportionate. Where it is determined that the outcome is not reasonable and proportionate, the Director General may make their own findings, direct a reinvestigation, or give a recommendation on disciplinary proceedings. Where a recommendation is made and the appropriate authority does not take steps to give effect to that recommendation, the Director General retains the power (previously provided for in regulation 71 of the principal Regulations) to direct the appropriate authority to take such steps. As a consequence:

• regulation 57 amends the Part heading of Part 9 of the principal Regulations, and regulation 58 omits regulation 73 of the principal Regulations, to reflect the change to a single point of review, and

• regulations 7(a), 25(b), 32(a) and (b), 48(a), 49, 53(c) and (d), 56 and 60 make consequential amendments to regulations 12, 37, 43, 62, 63, 68, 71 and 75 of the principal Regulations, respectively, to reflect the change to a single point of review and the outcomes available to the Director General.

Other miscellaneous amendments

Regulation 4 makes consequential amendments to regulation 5 of the principal Regulations which applies relevant provisions of the Police Reform Act 2002 with modification.

Regulation 5 amends regulation 8 of the principal Regulations to broaden the Chancellor of the Exchequer’s power to require reports from the Director General of the IOPC, and from the IOPC, about the carrying out of HMRC oversight functions.

Regulation 6(b) amends regulation 9 of the principal Regulations to include a definition of “the person in question”, a term used in paragraph (8) of that regulation.

A full Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.

Footnotes