Finance Act 2008

Section 113

SCHEDULE 36U.K.Information and inspection powers

Part 1U.K.Powers to obtain information and documents

Power to obtain information and documents from taxpayerU.K.

1(1)An officer of Revenue and Customs may by notice in writing require a person (“the taxpayer”)—U.K.

(a)to provide information, or

(b)to produce a document,

if the information or document is reasonably required by the officer for the purpose of checking the taxpayer's tax position [F1or for the purpose of collecting a tax debt of the taxpayer].

(2)In this Schedule, “taxpayer notice” means a notice under this paragraph.

Power to obtain information and documents from third partyU.K.

2(1)An officer of Revenue and Customs may by notice in writing require a person—U.K.

(a)to provide information, or

(b)to produce a document,

if the information or document is reasonably required by the officer for the purpose of checking the tax position of another person whose identity is known to the officer (“the taxpayer”) [F2or for the purpose of collecting a tax debt of the taxpayer].

(2)A third party notice must name the taxpayer to whom it relates, unless the [F3tribunal] has approved the giving of the notice and disapplied this requirement under paragraph 3.

(3)In this Schedule, “third party notice” means a notice under this paragraph.

Approval etc of taxpayer notices and third party noticesU.K.

3(1)An officer of Revenue and Customs may not give a third party notice without—U.K.

(a)the agreement of the taxpayer, or

(b)the approval of the [F4tribunal] .

(2)An officer of Revenue and Customs may ask for the approval of the [F5tribunal] to the giving of any taxpayer notice or third party notice (and for the effect of obtaining such approval see paragraphs 29, 30 and 53 (appeals against notices and offence)).

[F6(2A)An application for approval under this paragraph may be made without notice (except as required under sub-paragraph (3)).]

(3)The [F7tribunal] may not approve the giving of a taxpayer notice or third party notice unless—

(a)an application for approval is made by, or with the agreement of, an authorised officer of Revenue and Customs,

(b)the [F8tribunal] is satisfied that, in the circumstances, the officer giving the notice is justified in doing so,

(c)the person to whom the notice is [F9to be] addressed has been told that the information or documents referred to in the notice are required and given a reasonable opportunity to make representations to an officer of Revenue and Customs,

(d)the [F7tribunal] has been given a summary of any representations made by that person, and

(e)in the case of a third party notice, the taxpayer has been given a summary of the reasons why an officer of Revenue and Customs requires the information and documents.

(4)Paragraphs (c) to (e) of sub-paragraph (3) do not apply to the extent that the [F10tribunal] is satisfied that taking the action specified in those paragraphs might prejudice the assessment or collection of tax.

(5)Where the [F11tribunal] approves the giving of a third party notice under this paragraph, it may also disapply the requirement to name the taxpayer in the notice if it is satisfied that the officer has reasonable grounds for believing that naming the taxpayer might seriously prejudice the assessment or collection of tax.

Copying third party notice to taxpayerU.K.

4(1)An officer of Revenue and Customs who gives a third party notice must give a copy of the notice to the taxpayer to whom it relates, unless the [F12tribunal] has disapplied this requirement.U.K.

(2)The [F13tribunal] may not disapply that requirement unless—

(a)an application for approval is made by, or with the agreement of, an authorised officer of Revenue and Customs, and

(b)the [F14tribunal] is satisfied that the officer has reasonable grounds for believing that giving a copy of the notice to the taxpayer might prejudice the assessment or collection of tax.

[F15Power to obtain information and documents from financial institutionsU.K.

4A(1)An officer of Revenue and Customs may by notice in writing require a financial institution—U.K.

(a)to provide information, or

(b)to produce a document,

if conditions A and B are met.

(2)Condition A is that the information or document is, in the reasonable opinion of the officer giving the notice, of a kind that it would not be onerous for the institution to provide or produce.

(3)Condition B is that the information or document is reasonably required by the officer—

(a)for the purpose of checking the tax position of another person whose identity is known to the officer (“the taxpayer”), or

(b)for the purpose of collecting a tax debt of the taxpayer.

(4)In this Schedule, “financial institution notice” means a notice under this paragraph.

(5)A financial institution notice may be given by an officer of Revenue and Customs only if—

(a)the officer is an authorised officer of Revenue and Customs, or

(b)an authorised officer of Revenue and Customs has agreed to the giving of the notice.

(6)A financial institution notice must name the taxpayer to whom it relates.

(7)An officer of Revenue and Customs—

(a)must give a copy of a financial institution notice to the taxpayer to whom it relates, and

(b)must give the taxpayer a summary of the reasons why an officer of Revenue and Customs requires the information and documents.

(8)An application (without notice) may be made to the tribunal by, or with the agreement of, an authorised officer of Revenue and Customs to disapply any of the requirements under sub-paragraph (6) or (7).

(9)The tribunal must grant the application to disapply the requirement under sub-paragraph (6) if it is satisfied that the officer has reasonable grounds for believing that naming the taxpayer might seriously prejudice the assessment or collection of tax.

(10)The tribunal must grant the application to disapply a requirement under sub-paragraph (7) if it is satisfied that complying with the requirement might prejudice the assessment or collection of tax.]

Power to obtain information and documents about persons whose identity is not knownU.K.

5(1)An authorised officer of Revenue and Customs may by notice in writing require a person—U.K.

(a)to provide information, or

(b)to produce a document,

if the condition in sub-paragraph (2) is met.

(2)That condition is that the information or document is reasonably required by the officer for the purpose of checking the F16... tax position of [F17or for the purpose of collecting a tax debt of]—

(a)a person whose identity is not known to the officer, or

(b)a class of persons whose individual identities are not known to the officer.

(3)An officer of Revenue and Customs may not give a notice under this paragraph without the approval of the [F18tribunal] .

[F19(3A)An application for approval under this paragraph may be made without notice.]

(4)The [F20tribunal] may not [F21approve the giving of a notice under] this paragraph unless it is satisfied that—

(a)the notice would meet the condition in sub-paragraph (2),

(b)there are reasonable grounds for believing that the person or any of the class of persons to whom the notice relates may have failed or may fail to comply with any provision of [F22the law (including the law of a territory outside the United Kingdom) relating to tax],

(c)any such failure is likely to have led or to lead to serious prejudice to the assessment or collection of F23... tax, and

(d)the information or document to which the notice relates is not readily available from another source.

F24(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F25Power to obtain information about persons whose identity can be ascertainedU.K.

5A(1)An authorised officer of Revenue and Customs may by notice in writing require a person to provide relevant information about another person (“the taxpayer”) if conditions A to D are met.U.K.

(2)Condition A is that the information is reasonably required by the officer for the purpose of checking the tax position of the taxpayer [F26or for the purpose of collecting a tax debt of the taxpayer].

(3)Condition B is that—

(a)the taxpayer's identity is not known to the officer, but

(b)the officer holds information from which the taxpayer's identity can be ascertained.

(4)Condition C is that the officer has reason to believe that—

(a)the person will be able to ascertain the taxpayer's identity from the information held by the officer, and

(b)the person obtained relevant information about the taxpayer in the course of carrying on a business.

(5)Condition D is that the taxpayer's identity cannot readily be ascertained by other means from the information held by the officer.

(6)“Relevant information” means all or any of the following—

(a)name,

(b)last known address, and

(c)date of birth (in the case of an individual).

(7)This paragraph applies for the purpose of checking the tax position of [F27, or for the purpose of collecting a tax debt of,] a class of persons as for the purpose of checking the tax position of [F27, or for the purpose of collecting a tax debt of,] a single person (and references to “the taxpayer” are to be read accordingly).]

NoticesU.K.

6(1)In this Schedule, “information notice” means a notice under paragraph 1, 2, [F284A,] [F29, 5 or 5A].U.K.

(2)An information notice may specify or describe the information or documents to be provided or produced.

(3)If an information notice is given with the approval of the [F30tribunal] , it must state that it is given with that approval.

[F31(4)A decision of the tribunal under paragraph 3, 4 [F32, 4A] or 5 is final (despite the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007).]

Complying with noticesU.K.

7(1)Where a person is required by an information notice to provide information or produce a document, the person must do so—U.K.

(a)within such period, and

(b)at such time, by such means and in such form (if any),

as is reasonably specified or described in the notice.

(2)Where an information notice requires a person to produce a document, it must be produced for inspection—

(a)at a place agreed to by that person and an officer of Revenue and Customs, or

(b)at such place as an officer of Revenue and Customs may reasonably specify.

(3)An officer of Revenue and Customs must not specify a place that is used solely as a dwelling.

(4)The production of a document in compliance with an information notice is not to be regarded as breaking any lien claimed on the document.

Producing copies of documentsU.K.

8(1)Where an information notice requires a person to produce a document, the person may comply with the notice by producing a copy of the document, subject to any conditions or exceptions set out in regulations made by the Commissioners.U.K.

(2)Sub-paragraph (1) does not apply where—

(a)the notice requires the person to produce the original document, or

(b)an officer of Revenue and Customs subsequently makes a request in writing to the person for the original document.

(3)Where an officer of Revenue and Customs requests a document under sub-paragraph (2)(b), the person to whom the request is made must produce the document—

(a)within such period, and

(b)at such time and by such means (if any),

as is reasonably requested by the officer.

Restrictions and special casesU.K.

9U.K.This Part of this Schedule has effect subject to Parts 4 and 6 of this Schedule.

Part 2U.K.Powers to inspect [F33PREMISES AND OTHER PROPERTY]

Power to inspect business premises etcU.K.

10(1)An officer of Revenue and Customs may enter a person's business premises and inspect—U.K.

(a)the premises,

(b)business assets that are on the premises, and

(c)business documents that are on the premises,

if the inspection is reasonably required for the purpose of checking that person's tax position.

(2)The powers under this paragraph do not include power to enter or inspect any part of the premises that is used solely as a dwelling.

(3)In this Schedule—

• “business assets” means assets that an officer of Revenue and Customs has reason to believe are owned, leased or used in connection with the carrying on of a business by any person [F34(but see sub-paragraph (4))],

• “business documents” means documents (or copies of documents)—

  (a)

  that relate to the carrying on of a business by any person, and

  (b)

  that form part of any person's statutory records, and

• “business premises”, in relation to a person, means premises (or any part of premises) that an officer of Revenue and Customs has reason to believe are (or is) used in connection with the carrying on of a business by or on behalf of the person.

[F35(4)For the purposes of this Schedule, “business assets” does not include documents, other than—

(a)documents that are trading stock for the purposes of Chapter 11A of Part 2 of ITTOIA 2005 (see section 172A of that Act), and

(b)documents that are plant for the purposes of Part 2 of CAA 2001.]

[F36(5)In sub-paragraph (1), the reference to a person's tax position does not include a reference to a person's position as regards soft drinks industry levy.]

[F37Power to inspect business premises etc of involved third partiesU.K.

10A(1)An officer of Revenue and Customs may enter business premises of an involved third party (see paragraph 61A) and inspect—U.K.

(a)the premises,

(b)business assets that are on the premises, and

(c)relevant documents that are on the premises,

if the inspection is reasonably required by the officer for the purpose of checking the position of any person or class of persons as regards a relevant tax.

(2)The powers under this paragraph may be exercised whether or not the identity of that person is, or the individual identities of those persons are, known to the officer.

(3)The powers under this paragraph do not include power to enter or inspect any part of the premises that is used solely as a dwelling.

(4)In relation to an involved third party, “relevant documents” and “relevant tax” are defined in paragraph 61A.]

Power to inspect premises used in connection with taxable supplies etcU.K.

11(1)This paragraph applies where an officer of Revenue and Customs has reason to believe that—U.K.

(a)premises are used in connection with the supply of goods under taxable supplies and goods to be so supplied [F38or documents relating to such goods] are on those premises,

(b)F39... or

(c)premises are used as [F40or in connection with] a fiscal warehouse.

(2)An officer of Revenue and Customs may enter the premises and inspect—

(a)the premises,

(b)any goods that are on the premises, and

(c)any documents on the premises that appear to the officer to relate to [F41the supply of goods under taxable supplies F42... or fiscal warehousing].

(3)The powers under this paragraph do not include power to enter or inspect any part of the premises that is used solely as a dwelling.

(4)Terms used both in [F43this paragraph] and in VATA 1994 have the same meaning [F44here] as they have in that Act.

Carrying out inspections [F45under paragraph 10, 10A or 11] U.K.

12(1)An inspection under [F46paragraph 10, 10A or 11] may be carried out only—U.K.

(a)at a time agreed to by the occupier of the premises, or

(b)if sub-paragraph (2) is satisfied, at any reasonable time.

(2)This sub-paragraph is satisfied if—

(a)the occupier of the premises has been given at least 7 days' notice of the time of the inspection (whether in writing or otherwise), or

(b)the inspection is carried out by, or with the agreement of, an authorised officer of Revenue and Customs.

(3)An officer of Revenue and Customs seeking to carry out an inspection under sub-paragraph (2)(b) must provide a notice in writing as follows—

(a)if the occupier of the premises is present at the time the inspection is to begin, the notice must be provided to the occupier,

(b)if the occupier of the premises is not present but a person who appears to the officer to be in charge of the premises is present, the notice must be provided to that person, and

(c)in any other case, the notice must be left in a prominent place on the premises.

(4)The notice referred to in sub-paragraph (3) must state the possible consequences of obstructing the officer in the exercise of the power.

(5)If a notice referred to in sub-paragraph (3) is given [F47in respect of an inspection approved by] the [F48tribunal] (see paragraph 13), it must state that [F49the inspection has been so approved].

[F50Powers to inspect property for valuation etcU.K.

12A(1)An officer of Revenue and Customs may enter and inspect premises for the purpose of valuing the premises if the valuation is reasonably required for the purpose of checking any person's position as regards income tax or corporation tax.U.K.

(2)An officer of Revenue and Customs may enter premises and inspect—

(a)the premises, and

(b)any other property on the premises,

for the purpose of valuing, measuring or determining the character of the premises or property.

(3)Sub-paragraph (2) only applies if the valuation, measurement or determination is reasonably required for the purpose of checking any person's position as regards—

(a)capital gains tax,

(b)corporation tax in respect of chargeable gains,

(c)inheritance tax,

(d)stamp duty land tax, F51...

(e)stamp duty reserve tax[F52, or

(f)annual tax on enveloped dwellings.]

(4)A person who the officer considers is needed to assist with the valuation, measurement or determination may enter and inspect the premises or property with the officer.

Carrying out inspections under paragraph 12AU.K.

12B(1)An inspection under paragraph 12A may be carried out only if condition A or B is satisfied.U.K.

(2)Condition A is that—

(a)the inspection is carried out at a time agreed to by a relevant person, and

(b)the relevant person has been given notice in writing of the agreed time of the inspection.

(3)“Relevant person” means—

(a)the occupier of the premises, or

(b)if the occupier cannot be identified or the premises are vacant, a person who controls the premises.

(4)Condition B is that—

(a)the inspection has been approved by the tribunal, and

(b)any relevant person specified by the tribunal has been given at least 7 days' notice in writing of the time of the inspection.

(5)A notice under sub-paragraph (4)(b) must state the possible consequences of obstructing the officer in the exercise of the power.

(6)If a notice is given under this paragraph in respect of an inspection approved by the tribunal (see paragraph 13), it must state that the inspection has been so approved.

(7)An officer of Revenue and Customs seeking to carry out an inspection under paragraph 12A must produce evidence of authority to carry out the inspection if asked to do so by—

(a)the occupier of the premises, or

(b)any other person who appears to the officer to be in charge of the premises or property.]

Approval of [F53tribunal] U.K.

13(1)An officer of Revenue and Customs may ask the [F54tribunal] to approve an inspection under this Part of this Schedule [F55(and for the effect of obtaining such approval see paragraph 39 (penalties))].U.K.

[F56(1A)An application for approval under this paragraph may be made without notice [F57(except as required under sub-paragraph (2A))].]

(2)The [F54tribunal] may not approve an inspection [F58under paragraph 10, 10A or 11] unless—

(a)an application for approval is made by, or with the agreement of, an authorised officer of Revenue and Customs, and

(b)the [F59tribunal] is satisfied that, in the circumstances, the inspection is justified.

[F60(2A)The tribunal may not approve an inspection under paragraph 12A unless—

(a)an application for approval is made by, or with the agreement of, an authorised officer of Revenue and Customs,

(b)the person whose tax position is the subject of the proposed inspection has been given a reasonable opportunity to make representations to the officer of Revenue and Customs about that inspection,

(c)the occupier of the premises has been given a reasonable opportunity to make such representations,

(d)the tribunal has been given a summary of any representations made, and

(e)the tribunal is satisfied that, in the circumstances, the inspection is justified.

(2B)Paragraph (c) of sub-paragraph (2A) does not apply if the tribunal is satisfied that the occupier of the premises cannot be identified.]

[F61(3)A decision of the tribunal under this paragraph is final (despite the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007).]

Restrictions and special casesU.K.

14U.K.This Part of this Schedule has effect subject to Parts 4 and 6 of this Schedule.

Part 3U.K.Further powers

Power to copy documentsU.K.

15U.K.Where a document (or a copy of a document) is produced to, or inspected by, an officer of Revenue and Customs, such an officer may take copies of, or make extracts from, the document.

Power to remove documentsU.K.

16(1)Where a document is produced to, or inspected by, an officer of Revenue and Customs, such an officer may—U.K.

(a)remove the document at a reasonable time, and

(b)retain it for a reasonable period,

if it appears to the officer to be necessary to do so.

(2)Where a document is removed in accordance with sub-paragraph (1), the person who produced the document may request—

(a)a receipt for the document, and

(b)if the document is reasonably required for any purpose, a copy of the document,

and an officer of Revenue and Customs must comply with such a request without charge.

(3)The removal of a document under this paragraph is not to be regarded as breaking any lien claimed on the document.

(4)Where a document removed under this paragraph is lost or damaged, the Commissioners are liable to compensate the owner of the document for any expenses reasonably incurred in replacing or repairing the document.

(5)In this paragraph references to a document include a copy of a document.

Power to mark assets and to record informationU.K.

17U.K.The powers under Part 2 of this Schedule include—

(a)power to mark business assets, and anything containing business assets, for the purpose of indicating that they have been inspected, and

(b)power to obtain and record information (whether electronically or otherwise) relating to the premises, [F62property, goods,] assets and documents that have been inspected.

Part 4U.K.Restrictions on powers

Documents not in person's possession or powerU.K.

18U.K.An information notice only requires a person to produce a document if it is in the person's possession or power.

Types of informationU.K.

19(1)An information notice does not require a person to provide or produce—U.K.

(a)information that relates to the conduct of a pending appeal relating to tax or any part of a document containing such information,

[F63(aa)information that relates to the conduct of a pending appeal under the Savings (Government Contributions) Act 2017 or any part of a document containing such information,] or

(b)journalistic material (as defined in section 13 of the Police and Criminal Evidence Act 1984 (c. 60)) or information contained in such material.

(2)An information notice does not require a person to provide or produce personal records (as defined in section 12 of the Police and Criminal Evidence Act 1984) or information contained in such records, subject to sub-paragraph (3).

(3)An information notice may require a person—

(a)to produce documents, or copies of documents, that are personal records, omitting any information whose inclusion (whether alone or with other information) makes the original documents personal records (“personal information”), and

(b)to provide any information contained in such records that is not personal information.

F64(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F64(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Old documentsU.K.

20U.K.An information notice may not require a person to produce a document if the whole of the document originates more than 6 years before the date of the notice, unless the notice is given by, or with the agreement of, an authorised officer.

Taxpayer notices [F65following tax return] U.K.

21(1)Where a person has made a tax return in respect of a chargeable period under section 8, 8A or 12AA of TMA 1970 (returns for purpose of income tax and capital gains tax), a taxpayer notice may not be given for the purpose of checking that person's income tax position or capital gains tax position in relation to the chargeable period.U.K.

(2)Where a person has made a tax return in respect of a chargeable period under paragraph 3 of Schedule 18 to FA 1998 (company tax returns), a taxpayer notice may not be given for the purpose of checking that person's corporation tax position in relation to the chargeable period.

(3)Sub-paragraphs (1) and (2) do not apply where, or to the extent that, any of conditions A to [F66E] is met.

(4)Condition A is that a notice of enquiry has been given in respect of—

(a)the return, or

(b)a claim or election (or an amendment of a claim or election) made by the person in relation to the chargeable period in respect of the tax (or one of the taxes) to which the return relates (“relevant tax”),

and the enquiry has not been completed [F67so far as relating to the matters to which the taxpayer notice relates].

(5)In sub-paragraph (4), “notice of enquiry” means a notice under—

(a)section 9A or 12AC of, or paragraph 5 of Schedule 1A to, TMA 1970, or

(b)paragraph 24 of Schedule 18 to FA 1998.

(6)Condition B is that [F68, as regards the person,] an officer of Revenue and Customs has reason to suspect that—

(a)an amount that ought to have been assessed to relevant tax for the chargeable period may not have been assessed,

(b)an assessment to relevant tax for the chargeable period may be or have become insufficient, or

(c)relief from relevant tax given for the chargeable period may be or have become excessive.

(7)Condition C is that the notice is given for the purpose of obtaining any information or document that is also required for the purpose of checking [F69the] person's [F70position as regards any tax other than income tax, capital gains tax or corporation tax].

(8)Condition D is that the notice is given for the purpose of obtaining any information or document that is required (or also required) for the purpose of checking the person's position as regards any deductions or repayments [F71of tax or withholding of income] referred to in paragraph 64(2) [F72or (2A)] (PAYE etc).

[F73(8A)Condition E is that the notice is given for the purpose of obtaining any specified relevant transfer pricing information or documents.

(8B)For the purposes of Condition E, information or documents are “specified relevant transfer pricing information or documents” if—

(a)they are relevant transfer pricing records specified, or of a description specified, in regulations under section 12B of TMA 1970 or paragraph 21 of Schedule 18 to FA 1998 (duties to keep and preserve records), and

(b)the relevant person is required to keep and preserve those records under either or both of those provisions.

(8C)For the purposes of subsection (8B), the “relevant person” means—

(a)in the case of a tax return made in respect of a chargeable period under section 8A or 12AA of TMA 1970 (trustee’s and partnership returns)—

(i)the person, or

(ii)a person who was required by a notice under the section concerned to make and deliver the return;

(b)in any other case, the person.]

[F74(9)In this paragraph references to the person who made the return are only to that person in the capacity in which the return was made.]

[F75Application of paragraph 21 in case of returns under Schedule 2 to FA 2019U.K.

21ZA(1)For the purposes of paragraph 21 any reference to the making by a person of a return under section 8 or 8A of TMA 1970 includes the making by the person of a return under Schedule 2 to FA 2019.U.K.

(2)In the application of paragraph 21 in relation to a return under Schedule 2 to FA 2019, the return is to be treated as if it required a self-assessment of an amount of capital gains tax.

(3)For the purposes of paragraph 21, the definition of “the notice of enquiry” in its application to a return under Schedule 2 to FA 2019 needs to be read in the light of the provision made by paragraph 20 of that Schedule.]

[F76Taxpayer notices following land transaction returnU.K.

21A(1)Where a person has delivered a land transaction return under section 76 of FA 2003 (returns for purposes of stamp duty land tax) in respect of a transaction, a taxpayer notice may not be given for the purpose of checking that person's stamp duty land tax position in relation to that transaction.U.K.

(2)Sub-paragraph (1) does not apply where, or to the extent that, any of conditions [F77A to D] is met.

(3)Condition A is that a notice of enquiry has been given in respect of—

(a)the return, or

(b)a claim (or an amendment of a claim) made by the person in connection with the transaction,

and the enquiry has not been completed.

(4)In sub-paragraph (3) “notice of enquiry” means a notice under paragraph 12 of Schedule 10, or paragraph 7 of Schedule 11A, to FA 2003.

(5)Condition B is that, as regards the person, an officer of Revenue and Customs has reason to suspect that—

(a)an amount that ought to have been assessed to stamp duty land tax in respect of the transaction may not have been assessed,

(b)an assessment to stamp duty land tax in respect of the transaction may be or have become insufficient, or

(c)relief from stamp duty land tax in respect of the transaction may be or have become excessive.

(6)Condition C is that the notice is given for the purpose of obtaining any information or document that is also required for the purpose of checking that person's position as regards a tax other than stamp duty land tax.]

[F78(7)Condition D is that relief from stamp duty land tax has been given in respect of the transaction and the notice is given for the purpose of checking whether—

(a)the relief is withdrawn to any extent under a provision mentioned in section 81 or 81ZA of FA 2003, or

(b)paragraph 6 of Schedule 6B to FA 2003 (transfers involving multiple dwellings) applies.

(8)Where condition D is met (and not any of conditions A to C), a taxpayer notice may not be given by virtue of this paragraph after the end of the period of 4 years beginning with the effective date of the transaction (but see sub-paragraph (9) in relation to PAIF seeding relief and COACS seeding relief).

(9)Where condition D is met because the notice is given for the purpose of checking whether the relief is withdrawn to any extent under a paragraph of Schedule 7A to FA 2003 (PAIF seeding relief and COACS seeding relief), the reference in sub-paragraph (8) to the effective date of the transaction is to be read as a reference to the first day of the control period within the meaning of that Schedule (see paragraph 21 of that Schedule).

(10)“Effective date” has the same meaning for the purposes of sub-paragraph (8) as for the purposes of Part 4 of FA 2003 (see section 119 of that Act).]

[F79Annual tax on enveloped dwellings: taxpayer notices following returnU.K.

21B(1)Where a person has delivered, for a chargeable period with respect to a single-dwelling interest—U.K.

(a)an annual tax on enveloped dwellings return, or

(b)a return of the adjusted chargeable amount,

a taxpayer notice may not be given for the purpose of checking the person's annual tax on enveloped dwellings position as regards the matters dealt with in that return.

(2)Sub-paragraph (1) does not apply where, or to the extent that, any of conditions A to C is met.

(3)Condition A is that notice of enquiry has been given in respect of—

(a)the return, or

(b)a claim (or an amendment of a claim) made by the person in relation to the chargeable period,

and the enquiry has not been completed.

(4)In sub-paragraph (3) “notice of enquiry” means a notice under paragraph 8 of Schedule 33 to FA 2013 or paragraph 7 of Schedule 11A to FA 2003 (as applied by paragraphs 28(2) and 31(3) of Schedule 33 to FA 2013).

(5)Condition B is that, as regards the person, an officer of Revenue and Customs has reason to suspect that—

(a)an amount that ought to have been assessed to annual tax on enveloped dwellings for the chargeable period may not have been assessed,

(b)an assessment to annual tax on enveloped dwellings for the chargeable period may be or have become insufficient, or

(c)relief from annual tax on enveloped dwellings for the chargeable period may be or have become excessive.

(6)Condition C is that the notice is given for the purpose of obtaining any information or document that is also required for the purpose of checking that person's position as regards a tax other than annual tax on enveloped dwellings.

(7)In this Schedule references to a “single-dwelling interest” are to be read in accordance with section 108 of FA 2013.]

Deceased personsU.K.

22U.K.An information notice given for the purpose of checking the tax position of a person who has died may not be given more than 4 years after the person's death.

Privileged communications between professional legal advisers and clientsU.K.

23(1)An information notice does not require a person—U.K.

(a)to provide privileged information, or

(b)to produce any part of a document that is privileged.

(2)For the purpose of this Schedule, information or a document is privileged if it is information or a document in respect of which a claim to legal professional privilege, or (in Scotland) to confidentiality of communications as between client and professional legal adviser, could be maintained in legal proceedings.

(3)The Commissioners may by regulations make provision for the resolution by the [F80tribunal] of disputes as to whether any information or document is privileged.

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

(a)the custody of a document while its status is being decided, F81...

F81(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

AuditorsU.K.

24(1)An information notice does not require a person who has been appointed as an auditor for the purpose of an enactment—U.K.

(a)to provide information held in connection with the performance of the person's functions under that enactment, or

(b)to produce documents which are that person's property and which were created by that person or on that person's behalf for or in connection with the performance of those functions.

(2)Sub-paragraph (1) has effect subject to paragraph 26.

Tax advisersU.K.

25(1)An information notice does not require a tax adviser—U.K.

(a)to provide information about relevant communications, or

(b)to produce documents which are the tax adviser's property and consist of relevant communications.

(2)Sub-paragraph (1) has effect subject to paragraph 26.

(3)In this paragraph—

• “relevant communications” means communications between the tax adviser and—

  (a)

  a person in relation to whose tax affairs he has been appointed, or

  (b)

  any other tax adviser of such a person,

  the purpose of which is the giving or obtaining of advice about any of those tax affairs, and

• “tax adviser” means a person appointed to give advice about the tax affairs of another person (whether appointed directly by that person or by another tax adviser of that person).

Auditors and tax advisers: supplementaryU.K.

26(1)Paragraphs 24(1) and 25(1) do not have effect in relation to—U.K.

(a)information explaining any information or document which the person to whom the notice is given has, as tax accountant, assisted any client in preparing for, or delivering to, HMRC, or

(b)a document which contains such information.

(2)In the case of a notice given under paragraph 5, paragraphs 24(1) and 25(1) do not have effect in relation to—

(a)any information giving the identity or address of a person to whom the notice relates or of a person who has acted on behalf of such a person, or

(b)a document which contains such information.

(3)Paragraphs 24(1) and 25(1) are not disapplied by sub-paragraph (1) or (2) if the information in question has already been provided, or a document containing the information in question has already been produced, to an officer of Revenue and Customs.

27(1)This paragraph applies where paragraph 24(1) or 25(1) is disapplied in relation to a document by paragraph 26(1) or (2).U.K.

(2)An information notice that requires the document to be produced has effect as if it required any part or parts of the document containing the information mentioned in paragraph 26(1) or (2) to be produced.

Corresponding restrictions on inspection of F82... documents U.K.

28U.K.An officer of Revenue and Customs may not inspect a F83... document under Part 2 of this Schedule if or to the extent that, by virtue of this Part of this Schedule, an information notice given at the time of the inspection to the occupier of the premises could not require the occupier to produce the document.

Part 5U.K.Appeals against information notices

Right to appeal against taxpayer noticeU.K.

29(1)Where a taxpayer is given a taxpayer notice, the taxpayer may appeal F84... against the notice or any requirement in the notice.U.K.

(2)Sub-paragraph (1) does not apply to a requirement in a taxpayer notice to provide any information, or produce any document, that forms part of the taxpayer's statutory records.

(3)Sub-paragraph (1) does not apply if the [F85tribunal] approved the giving of the notice in accordance with paragraph 3.

Right to appeal against third party noticeU.K.

30(1)Where a person is given a third party notice, the person may appeal F86... against the notice or any requirement in the notice on the ground that it would be unduly onerous to comply with the notice or requirement.U.K.

(2)Sub-paragraph (1) does not apply to a requirement in a third party notice to provide any information, or produce any document, that forms part of the taxpayer's statutory records.

(3)Sub-paragraph (1) does not apply if the [F87tribunal] approved the giving of the notice in accordance with paragraph 3.

Right to appeal against notice given under paragraph 5 [F88or 5A]U.K.

31U.K.Where a person is given a notice under paragraph 5 [F89or 5A], the person may appeal F90... against the notice or any requirement in the notice on the ground that it would be unduly onerous to comply with the notice or requirement.

ProcedureU.K.

32(1)Notice of an appeal under this Part of this Schedule must be given—U.K.

(a)in writing,

(b)before the end of the period of 30 days beginning with the date on which the information notice is given, and

(c)to the officer of Revenue and Customs by whom the information notice was given.

(2)Notice of an appeal under this Part of this Schedule must state the grounds of appeal.

(3)On an appeal [F91that is notified to the tribunal, the tribunal] may—

(a)confirm the information notice or a requirement in the information notice,

(b)vary the information notice or such a requirement, or

(c)set aside the information notice or such a requirement.

(4)Where the [F92tribunal] confirms or varies the information notice or a requirement, the person to whom the information notice was given must comply with the notice or requirement—

(a)within such period as is specified by the [F93tribunal] , or

(b)if the [F94tribunal] does not specify a period, within such period as is reasonably specified in writing by an officer of Revenue and Customs following the [F95tribunal’s] decision.

[F96(5)Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007 a decision of the tribunal on an appeal under this Part of this Schedule is final.]

(6)Subject to this paragraph, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to appeals under this Part of this Schedule as they have effect in relation to an appeal against an assessment to income tax.

Special casesU.K.

33U.K.This Part of this Schedule has effect subject to Part 6 of this Schedule.

Part 6U.K.Special cases

Supply of goods or services etcU.K.

34(1)This paragraph applies to a taxpayer notice or third party notice that refers only to information or documents that form part of any person's statutory records and relate to—U.K.

(a)the supply of goods or services,

(b)F97... or

(c)the importation of goods F98... in the course of carrying on a business.

(2)Paragraph 3(1) (requirement for consent to, or approval of, third party notice) does not apply to such a notice.

(3)Where a person is given such a notice, the person may not appeal F99... against the notice or any requirement in the notice.

(4)Sections 5 F100... and 15 of, and Schedule 4 to, VATA 1994, and any orders made under those provisions, apply for the purposes of this paragraph as if it were part of that Act.

[F101Involved third partiesU.K.

F10234AU.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Registered pension schemes etcU.K.

34B(1)This paragraph applies to a third party notice or a notice under paragraph 5 if it refers only to information or documents that relate to any pensions matter.U.K.

(2)“Pensions matter” means any matter relating to—

(a)a registered pension scheme,

(b)an annuity purchased with sums or assets held for the purposes of a registered pension scheme or a pre-2006 pension scheme, F103...

(c)an employer-financed retirement benefits scheme,

[F104(d)a QROPS or former QROPS, or

(e)an annuity purchased with sums or assets held for the purposes of a QROPS or former QROPS.]

(3)In relation to such a third party notice—

(a)paragraph 3(1) (approval etc of third party notices) does not apply,

(b)paragraph 4(1) (copying third party notices to taxpayer) does not apply, and

(c)paragraph 30(1) (appeal) has effect as if it permitted an appeal on any grounds.

(4)In relation to such a notice under paragraph 5—

(a)sub-paragraphs (3) and (4) of that paragraph (approval of tribunal) have effect as if they permitted, but did not require, an authorised officer of Revenue and Customs to obtain the approval of the tribunal, and

(b)paragraph 31 (appeal) has effect as if it permitted an appeal on any grounds.

[F105(4A)In relation to a notice to which this paragraph applies that refers only to information or documents relating to a matter within sub-paragraph (2)(d) or (e), paragraph 20 (old documents) has effect as if the reference to 6 years were to 10 years.]

(5)A person may not appeal against a requirement in the notice to provide any information, or produce any document, that forms part of any person's statutory records.

(6)Where the notice relates to a matter within sub-paragraph (2)(a) or (b), the officer of Revenue and Customs who gives the notice must give a copy of the notice to the scheme administrator in relation to the pension scheme.

(7)Where the notice relates to a matter within sub-paragraph (2)(c), the officer of Revenue and Customs who gives the notice must give a copy of the notice to the responsible person in relation to the employer-financed retirement benefits scheme.

[F106(7A)Where the notice relates to a matter within sub-paragraph (2)(d) or (e), the officer of Revenue and Customs who gives the notice must give a copy of the notice to the scheme manager in relation to the pension scheme.]

(8)Sub-paragraphs (6) [F107to (7A)] do not apply if the notice is given to a person who, in relation to the scheme or annuity to which the notice relates, is a prescribed description of person.

Registered pension schemes etc: interpretation]U.K.

34CU.K.In paragraph 34B—

• “employer-financed retirement benefits scheme” has the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see sections 393A and 393B of that Act);

• “pension scheme” has the same meaning as in Part 4 of FA 2004;

• “pre-2006 pension scheme” means a scheme that, at or in respect of any time before 6 April 2006, was—

  (a)

  a retirement benefits scheme approved for the purposes of Chapter 1 of Part 14 of ICTA,

  (b)

  a former approved superannuation fund (as defined in paragraph 1(3) of Schedule 36 to FA 2004),

  (c)

  a relevant statutory scheme (as defined in section 611A of ICTA) or a pension scheme treated as if it were such a scheme, or

  (d)

  a personal pension scheme approved under Chapter 4 of Part 14 of ICTA;

• “prescribed” means prescribed by regulations made by the Commissioners;

• [F108“QROPS” and “former QROPS” have the meanings given by section 169(8) of FA 2004;]

• “registered pension scheme” means a pension scheme that is or has been a registered pension scheme within the meaning of Part 4 of FA 2004 or in relation to which an application for registration under that Part of that Act has been made;

• “responsible person”, in relation to an employer-financed retirement benefits scheme, has the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see section 399A of that Act);

• “scheme administrator”, in relation to a pension scheme, has the same meaning as in Part 4 of FA 2004 (see section 270 of that Act);

• [F108“scheme manager”, in relation to a pension scheme, has the meaning given by section 169(3) of FA 2004.]

Groups of undertakingsU.K.

35(1)This paragraph applies where an undertaking is a parent undertaking in relation to another undertaking (a subsidiary undertaking).U.K.

(2)Where a third party notice is given to any person for the purpose of checking the tax position of the parent undertaking and any of its subsidiary undertakings,[F109—

(a)paragraph 2(2)] only requires the notice to state this and name the parent undertaking [F110, and

(b)the references in paragraph 3(5) to naming the taxpayer are to making that statement and naming the parent undertaking.]

(3)In relation to such a notice—

(a)in paragraphs 3 and 4 (approval etc of notices and copying third party notices to taxpayer), the references to the taxpayer have effect as if they were references to the parent undertaking, but

(b)in paragraph 30(2) (no appeal in relation to taxpayer's statutory records), the reference to the taxpayer has effect as if it were a reference to the parent undertaking and each of its subsidiary undertakings.

[F111(4)Where a third party notice is given to the parent undertaking for the purpose of checking the tax position of more than one subsidiary undertaking—

(a)paragraph 2(2) only requires the notice to state this, and

(b)the references in paragraph 3(5) to naming the taxpayer are to making that statement.

(4A)In relation to such a notice—

(a)in paragraph 3 (approval etc of notices), sub-paragraphs (1) and (3)(e) do not apply,

(b)paragraph 4(1) (copying third party notices to taxpayer) does not apply,

(c)[F112paragraphs 21 and 21A] (restrictions on giving taxpayer notice where taxpayer has made return) [F113apply] as if the notice was a taxpayer notice or taxpayer notices given to each subsidiary undertaking (or, if the notice names the subsidiary undertakings to which it relates, to each of those undertakings),

(d)paragraph 30(1) (appeal) has effect as if it permitted an appeal on any grounds, and

(e)in paragraph 30(2) (no appeal in relation to taxpayer's statutory records), the reference to the taxpayer has effect as if it were a reference to the parent undertaking or any of its subsidiary undertakings.]

(5)Where a notice is given under paragraph 5 to the parent undertaking for the purpose of checking the tax position of one or more subsidiary undertakings whose identities are not known to the officer giving [F114—

(a)sub-paragraphs (3) and (4) of that paragraph (approval of tribunal) have effect as if they permitted, but did not require, the officer to obtain the approval of the tribunal, and

(b)paragraph 31 (appeal) has effect as if it permitted an appeal on any grounds, but the parent undertaking may not appeal against a requirement in the notice to produce any document that forms part of the statutory records of the parent undertaking or any of its subsidiary undertakings.]

F115(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)In this paragraph “parent undertaking”, “subsidiary undertaking” and “undertaking” have the same meaning as in the Companies Acts (see sections 1161 and 1162 of, and Schedule 7 to, the Companies Act 2006 (c. 46)).

Change of ownership of companiesU.K.

36(1)Sub-paragraph (2) applies where it appears to the Commissioners that—U.K.

(a)there has been a change in the ownership of a company, and

(b)in connection with that change a person (“the seller”) may be or become liable to be assessed and charged to corporation tax under [F116section 710 or 713 of CTA 2010].

(2)Paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made tax return) does not apply in relation to a taxpayer notice given to the seller.

(3)[F117Chapter 7 of Part 14 of CTA 2010] applies for the purposes of determining when there has been a change in the ownership of a company.

PartnershipsU.K.

37(1)This paragraph applies where a business is carried on by two or more persons in partnership.U.K.

[F118(2)Where, in respect of a chargeable period, any of the partners has—

(a)made a tax return under section 12AA of TMA 1970 (partnership returns), or

(b)made a claim or election in accordance with section 42(6)(b) of TMA 1970 (partnership claims and elections),

paragraph 21 (restrictions where taxpayer has made tax return) has effect as if that return, claim or election had been made by each of the partners.]

[F119(2A)Where, in respect of a transaction entered into as purchaser by or on behalf of the members of the partnership, any of the partners has—

(a)delivered a land transaction return under Part 4 of FA 2003 (stamp duty land tax), or

(b)made a claim under that Part of that Act,

paragraph 21A (restrictions where taxpayer has delivered land transaction return) has effect as if that return had been delivered, or that claim had been made, by each of the partners.]

[F120(2B)Where, in respect of a single-dwelling interest (see paragraph 21B(7)) to which one or more companies are or were entitled as members of a partnership, any member of the partnership has—

(a)delivered an annual tax on enveloped dwellings return or a return of the adjusted chargeable amount under Part 3 of FA 2013, or

(b)made a claim under that Part of that Act,

paragraph 21B (restrictions where taxpayer has delivered return) has effect as if that return had been delivered, or that claim had been made, by each member of the partnership.]

(3)Where a third party notice is given F121... for the purpose of checking the tax position of more than one of the partners (in their capacity as such), [F122—

(a)paragraph 2(2)] only requires the notice to state this and give a name in which the partnership is registered for any purpose [F123, and

(b)the references in paragraph 3(5) to naming the taxpayer are to making that statement and naming the partnership.]

(4)In relation to such a notice [F124given to a person other than one of the partners]—

(a)in paragraphs 3 and 4 (approval etc of notices and copying third party notices to taxpayer), the references to the taxpayer have effect as if they were references to at least one of the partners, and

(b)in paragraph 30(2) (no appeal in relation to taxpayer's statutory records), the reference to the taxpayer has effect as if it were a reference to [F125any of the partners in the partnership].

[F126(5)In relation to a third party notice given to one of the partners for the purpose of checking the tax position of one or more of the other partners (in their capacity as such)—

(a)in paragraph 3 (approval etc of notices), sub-paragraphs (1) and (3)(e) do not apply,

(b)paragraph 4(1) (copying third party notices to taxpayer) does not apply,

(c)paragraph 30(1) (appeal) has effect as if it permitted an appeal on any grounds, and

(d)in paragraph 30(2) (no appeal in relation to taxpayer's statutory records), the reference to the taxpayer has effect as if it were a reference to any of the partners in the partnership.]

(6)Where a notice is given under paragraph 5 to one of the partners for the purpose of checking the tax position of one or more of the other partners whose identities are not known to the officer giving the notice [F127—

(a)sub-paragraphs (3) and (4) of that paragraph (approval of tribunal) have effect as if they permitted, but did not require, the officer to obtain the approval of the tribunal, and

(b)paragraph 31 (appeal) has effect as if it permitted an appeal on any grounds, but the partner to whom the notice is given may not appeal against a requirement in the notice to produce any document that forms part of that partner's statutory records.]

F128(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F129Information in connection with herd basis electionU.K.

37A(1)This paragraph applies to a taxpayer notice given to a person carrying on a trade in relation to which a herd basis election is made if the notice refers only to information or documents that relate to—U.K.

(a)the animals kept for the purposes of the trade, or

(b)the products of those animals.

(2)Paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made tax return) does not apply in relation to the notice.

(3)“Herd basis election” means an election under Chapter 8 of Part 2 of ITTOIA 2005 or Chapter 8 of Part 3 of CTA 2009.

Information from persons liable to counteraction of tax advantageU.K.

37B(1)This paragraph applies to a taxpayer notice given to a person if—U.K.

(a)it appears to an officer of Revenue and Customs that a counteraction provision may apply to the person by reason of one or more transactions, and

(b)the notice refers only to information or documents relating to the transaction (or, if there are two or more transactions, any of them).

(2)Paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made tax return) does not apply in relation to the notice.

(3)“Counteraction provision” means—

F130(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)section 684 of ITA 2007 (person liable to counteraction of income tax advantage)][F131, or

(c)section 733 of CTA 2010 (company liable to counteraction of corporation tax advantage).]

[F132Specified relevant transfer pricing documentsU.K.

37C(1)This paragraph applies to an information notice given to a relevant person in an MNE Group (“A”) to the extent that the notice refers to specified relevant transfer pricing documents.U.K.

(2)Paragraph 18 (documents not in person’s possession or power) does not apply in relation to a specified relevant transfer pricing document that—

(a)is not in A’s possession or power, but

(b)is in the power or possession of another relevant person in the MNE Group concerned (“B”),

(and accordingly the information notice may require A to produce the document).

(3)For the purposes of this paragraph—

(a)documents are “specified relevant transfer pricing documents” if—

(i)they are relevant transfer pricing records specified, or of a description specified, in regulations under section 12B of TMA 1970 or paragraph 21 of Schedule 18 to FA 1998 (duties to keep and preserve records), and

(ii)A is required to keep and preserve those records under either or both of those provisions;

(b)“MNE Group” has the same meaning as in the Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) Regulations 2016 (S.I. 2016/237) (see regulation 2(3) of those Regulations);

(c)“relevant person in an MNE Group” means—

(i)a company,

(ii)a trustee of a trust, or

(iii)a partner in a partnership,

where that company, the trustees or the partnership, together with one or more other enterprises, constitutes an MNE Group.]

Application to the CrownU.K.

38U.K.This Schedule (other than Part 8) applies to the Crown, but not to Her Majesty in Her private capacity (within the meaning of the Crown Proceedings Act 1947 (c. 44)).

Part 7U.K.Penalties

F133... penalties [F134for failure to comply or obstruction] U.K.

39(1)This paragraph applies to a person who—U.K.

(a)fails to comply with an information notice, or

(b)deliberately obstructs an officer of Revenue and Customs in the course of an inspection under Part 2 of this Schedule that has been approved by the [F135tribunal].

(2)[F136The person] is liable to a penalty of £300.

(3)The reference in this paragraph to a person who fails to comply with an information notice includes a person who conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document in breach of paragraph 42 or 43.

Daily default penaltiesU.K.

40(1)This paragraph applies if the failure or obstruction mentioned in paragraph 39(1) continues after the date on which a penalty is imposed under that paragraph in respect of the failure or obstruction.U.K.

(2)The person is liable to a further penalty or penalties not exceeding £60 for each subsequent day on which the failure or obstruction continues.

[F137Penalties for inaccurate information and documentsU.K.

40A(1)This paragraph applies if—U.K.

(a)in complying with an information notice, a person provides inaccurate information or produces a document that contains an inaccuracy, and

(b)condition [F138A, B or C] is met.

(2)Condition A is that the inaccuracy is careless or deliberate.

(3)An inaccuracy is careless if it is due to a failure by the person to take reasonable care.

[F139(3A)Condition B is that the person knows of the inaccuracy at the time the information is provided or the document produced but does not inform HMRC at that time.]

(4)Condition [F140C] is that the person—

(a)discovers the inaccuracy some time later, and

(b)fails to take reasonable steps to inform HMRC.

(5)The person is liable to a penalty not exceeding £3,000.

(6)Where the information or document contains more than one inaccuracy, a penalty is payable for each inaccuracy.]

Power to change amount of F141... penaltiesU.K.

41(1)If it appears to the Treasury that there has been a change in the value of money since the last relevant date, they may by regulations substitute for the sums for the time being specified in paragraphs 39(2) [F142, 40(2) and 40A(5)] such other sums as appear to them to be justified by the change.U.K.

(2)In sub-paragraph (1) [F143, in relation to a specified sum,] “relevant date” means—

(a)the date on which this Act is passed, and

(b)each date on which the power conferred by that sub-paragraph has been exercised [F144in relation to that sum].

(3)Regulations under this paragraph do not apply to [F145—

(a)]any failure or obstruction which began before the date on which they come into force [F146, or

(b)an inaccuracy in any information or document provided to HMRC before that date.]

Concealing, destroying etc documents following information noticeU.K.

42(1)A person must not conceal, destroy or otherwise dispose of, or arrange for the concealment, destruction or disposal of, a document that is the subject of an information notice addressed to the person (subject to sub-paragraphs (2) and (3)).U.K.

(2)Sub-paragraph (1) does not apply if the person acts after the document has been produced to an officer of Revenue and Customs in accordance with the information notice, unless an officer of Revenue and Customs has notified the person in writing that the document must continue to be available for inspection (and has not withdrawn the notification).

(3)Sub-paragraph (1) does not apply, in a case to which paragraph 8(1) applies, if the person acts after the expiry of the period of 6 months beginning with the day on which a copy of the document was produced in accordance with that paragraph unless, before the expiry of that period, an officer of Revenue and Customs made a request for the original document under paragraph 8(2)(b).

Concealing, destroying etc documents following informal notificationU.K.

43(1)A person must not conceal, destroy or otherwise dispose of, or arrange for the concealment, destruction or disposal of, a document if an officer of Revenue and Customs has informed the person that the document is, or is likely, to be the subject of an information notice addressed to that person (subject to sub-paragraph (2)).U.K.

(2)Sub-paragraph (1) does not apply if the person acts after—

(a)at least 6 months has expired since the person was, or was last, so informed, or

(b)an information notice has been given to the person requiring the document to be produced.

Failure to comply with time limitU.K.

44U.K.A failure by a person to do anything required to be done within a limited period of time does not give rise to liability to a penalty under paragraph 39 or 40 if the person did it within such further time, if any, as an officer of Revenue and Customs may have allowed.

Reasonable excuseU.K.

45(1)Liability to a penalty under paragraph 39 or 40 does not arise if the person satisfies HMRC or [F147(on an appeal notified to the tribunal) the tribunal] that there is a reasonable excuse for the failure or the obstruction of an officer of Revenue and Customs.U.K.

(2)For the purposes of this paragraph—

(a)an insufficiency of funds is not a reasonable excuse unless attributable to events outside the person's control,

(b)where the person relies on any other person to do anything, that is not a reasonable excuse unless the first person took reasonable care to avoid the failure or obstruction, and

(c)where the person had a reasonable excuse for the failure or obstruction but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied, or the obstruction stops, without unreasonable delay after the excuse ceased.

F148Assessment of ... penaltyU.K.

46(1)Where a person becomes liable for a penalty under paragraph 39 [F149, 40 or 40A], F150... —U.K.

(a)[F151HMRC may] assess the penalty, and

(b)[F152if they do so, they must] notify the person.

(2)An assessment of a penalty under paragraph 39 or 40 must be made [F153within the period of 12 months beginning with the date on which the person became liable to the penalty, subject to sub-paragraph (3)].

[F154(3)In a case involving an information notice against which a person may appeal, an assessment of a penalty under paragraph 39 or 40 must be made within the period of 12 months beginning with the latest of the following—

(a)the date on which the person became liable to the penalty,

(b)the end of the period in which notice of an appeal against the information notice could have been given, and

(c)if notice of such an appeal is given, the date on which the appeal is determined or withdrawn.

(4)An assessment of a penalty under paragraph 40A must be made—

(a)within the period of 12 months beginning with the date on which the inaccuracy first came to the attention of an officer of Revenue and Customs, and

(b)within the period of 6 years beginning with the date on which the person became liable to the penalty.]

F155Right to appeal against ... penaltyU.K.

47[F156(1)]A person may appeal F157... against any of the following decisions of an officer of Revenue and Customs—U.K.

(a)a decision that a penalty is payable by that person under paragraph 39 [F158, 40 or 40A], or

(b)a decision as to the amount of such a penalty.

[F159(2)But sub-paragraph (1)(b) does not give a right of appeal against the amount of an increased daily penalty payable as a result of paragraph 49A.]