Office of Public Sector Information
SCHEDULE 28 continued PART 2 continued
(3) Where, in consequence of section 546C(7)(a), paragraph (a) or (b) of section 552(1) requires certificates to be delivered in respect of two or more surrenders, happening in the same year, of part of or a share in the rights conferred by the policy or contract, a single certificate may be delivered under the paragraph in question in respect of all those surrenders (and may treat them as if they together constituted a single surrender) unless between the happening of the first and the happening of the last of them there has been—
(a) an assignment of part of or a share in the rights conferred by the policy or contract; or
(b) an assignment, otherwise than for money or money’s worth, of the whole of the rights conferred by the policy or contract.
(4) Where the appropriate policy holder is two or more persons—
(a) section 552(1)(a) requires a certificate to be delivered to each of them; but
(b) nothing in section 552 or this section requires a body to deliver a certificate under subsection (1)(a) of that section to any person whose address has not been provided to the body (or to another body, at a time when the obligations under the policy or contract were obligations of that other body).
(5) A certificate under section 552(1)(b) or (3)—
(a) shall be in a form prescribed for the purpose by the Board; and
(b) shall be delivered by any means prescribed for the purpose by the Board;
and different forms, or different means of delivery, may be prescribed for different cases or different purposes.
(6) The Board may by regulations make such provision as they think fit for securing that they are able—
(a) to ascertain whether there has been or is likely to be any contravention of the requirements of section 552 or this section; and
(b) to verify any certificate under that section.
(7) Regulations under subsection (6) above may include, in particular, provisions requiring persons to whom premiums under any policy are or have at any time been payable—
(a) to supply information to the Board; and
(b) to make available books, documents and other records for inspection on behalf of the Board.
(8) Regulations under subsection (6) above may—
(a) make different provision for different cases; and
(b) contain such supplementary, incidental, consequential or transitional provision as appears to the Board to be appropriate.”.
19 In section 552B of the Taxes Act 1988, for subsection (2) (which specifies the relevant duties) substitute—
“(2) For the purposes of this section “the relevant duties” are—
(a) the duties imposed by section 552,
(b) the duties imposed by section 552ZA(2), (4) or (5), and
(c) any duties imposed by regulations made under subsection (6) of section 552ZA by virtue of subsection (7) of that section,
so far as relating to relevant insurances under which the overseas insurer in question has any obligations.”.
20 In section 98 of the Taxes Management Act 1970 (c. 9), in the second column of the Table—
(a) for the entry “section 552(1) to (4);” substitute “section 552;”; and
(b) for the entry “regulations under section 552(4A)” substitute “regulations under section 552ZA(6);”.
Section 88.
1 (1) In section 9(3) of the Taxes Management Act 1970 (personal or trustee return to include self-assessment: assessment on the taxpayer’s behalf) omit the words following the paragraphs.
(2) After that subsection insert—
“(3A) An assessment under subsection (3) above is treated for the purposes of this Act as a self-assessment and as included in the return.”.
2 (1) In section 9 of the Taxes Management Act 1970 (personal or trustee return to include self-assessment) omit subsections (4) to (6).
(2) After that section insert—
(1) A person may amend his return under section 8 or 8A of this Act by notice to an officer of the Board.
(2) An amendment may not be made more than twelve months after the filing date.
(3) In this section “the filing date” means the day mentioned in section 8(1A) or, as the case may be, section 8A(1A) of this Act.
(1) An officer of the Board may amend a return under section 8 or 8A of this Act so as to correct obvious errors or omissions in the return (whether errors of principle, arithmetical mistakes or otherwise).
(2) A correction under this section is made by notice to the person whose return it is.
(3) No such correction may be made more than nine months after—
(a) the day on which the return was delivered, or
(b) if the correction is required in consequence of an amendment of the return under section 9ZA of this Act, the day on which that amendment was made.
(4) A correction under this section is of no effect if the person whose return it is gives notice rejecting the correction.
(5) Notice of rejection under subsection (4) above must be given—
(a) to the officer of the Board by whom the notice of correction was given,
(b) before the end of the period of 30 days beginning with the date of issue of the notice of correction.”.
3 (1) In section 12AB of the Taxes Management Act 1970 (c. 9) (partnership returns) omit subsections (2) to (4) and the definition in subsection (5) of “filing date”.
(2) After that section insert—
(1) A partnership return may be amended by the partner who made and delivered the return, or his successor, by notice to an officer of the Board.
(2) An amendment may not be made more than twelve months after the filing date.
(3) Where a partnership return is amended under this section, the officer shall by notice to each of the partners amend—
(a) the partner’s return under section 8 or 8A of this Act, or
(b) the partner’s company tax return,
so as to give effect to the amendment of the partnership return.
(4) In this section “the filing date” means the day specified in the notice under section 12AA(2) of this Act or, as the case may be, subsection (3) of that section.
(1) An officer of the Board may amend a partnership return so as to correct obvious errors or omissions in the return (whether errors of principle, arithmetical mistakes or otherwise).
(2) A correction under this section is made by notice to the partner who made and delivered the return, or his successor.
(3) No such correction may be made more than nine months after—
(a) the day on which the return was delivered, or
(b) if the correction is required in consequence of an amendment of the return under section 12ABA of this Act, the day on which that amendment was made.
(4) A correction under this section is of no effect if the person to whom the notice of correction was given, or his successor, gives notice rejecting the correction.
(5) Notice of rejection under subsection (4) above must be given—
(a) to the officer of the Board by whom the notice of correction was given,
(b) before the end of the period of 30 days beginning with the date of issue of the notice of correction.
(6) Where a partnership return is corrected under this section, the officer shall by notice to each of the partners amend—
(a) the partner’s return under section 8 or 8A of this Act, or
(b) the partner’s company tax return,
so as to give effect to the correction of the partnership return.
Any such amendment shall cease to have effect if the correction is rejected.”.
4 (1) For section 9A of the Taxes Management Act 1970 (c. 9) (power to enquire into returns) substitute—
(1) An officer of the Board may enquire into a return under section 8 or 8A of this Act if he gives notice of his intention to do so (“notice of enquiry”)—
(a) to the person whose return it is (“the taxpayer”),
(b) within the time allowed.
(2) The time allowed is—
(a) if the return was delivered on or before the filing date, up to the end of the period of twelve months after the filing date;
(b) if the return was delivered after the filing date, up to and including the quarter day next following the first anniversary of the day on which the return was delivered;
(c) if the return is amended under section 9ZA of this Act, up to and including the quarter day next following the first anniversary of the day on which the amendment was made.
For this purpose the quarter days are 31st January, 30th April, 31st July and 31st October.
(3) A return which has been the subject of one notice of enquiry may not be the subject of another, except one given in consequence of an amendment (or another amendment) of the return under section 9ZA of this Act.
(4) An enquiry extends to anything contained in the return, or required to be contained in the return, including any claim or election included in the return, subject to the following limitation.
(5) If the notice of enquiry is given as a result of an amendment of the return under section 9ZA of this Act—
(a) at a time when it is no longer possible to give notice of enquiry under subsection (2)(a) or (b) above, or
(b) after an enquiry into the return has been completed,
the enquiry into the return is limited to matters to which the amendment relates or which are affected by the amendment.
(6) In this section “the filing date” means the day mentioned in section 8(1A) or, as the case may be, section 8A(1A) of this Act.
(1) This section applies if a return is amended under section 9ZA of this Act (amendment of personal or trustee return by taxpayer) at a time when an enquiry is in progress into the return.
(2) The amendment does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry.
(3) So far as the amendment affects the amount stated in the self-assessment included in the return as the amount of tax payable, it does not take effect while the enquiry is in progress and—
(a) if the officer states in the closure notice that he has taken the amendment into account and that—
(i) the amendment has been taken into account in formulating the amendments contained in the notice, or
(ii) his conclusion is that the amendment is incorrect,
the amendment shall not take effect;
(b) otherwise, the amendment takes effect when the closure notice is issued.
(4) For the purposes of this section the period during which an enquiry is in progress is the whole of the period—
(a) beginning with the day on which notice of enquiry is given, and
(b) ending with the day on which the enquiry is completed.
(1) This section applies where an enquiry is in progress into a return as a result of notice of enquiry by an officer of the Board under section 9A(1) of this Act.
(2) If the officer forms the opinion—
(a) that the amount stated in the self-assessment contained in the return as the amount of tax payable is insufficient, and
(b) that unless the assessment is immediately amended there is likely to be a loss of tax to the Crown,
he may by notice to the taxpayer amend the assessment to make good the deficiency.
(3) In the case of an enquiry which under section 9A(5) of this Act is limited to matters arising from an amendment of the return, subsection (2) above only applies so far as the deficiency is attributable to the amendment.
(4) For the purposes of this section the period during which an enquiry is in progress is the whole of the period—
(a) beginning with the day on which notice of enquiry is given, and
(b) ending with the day on which the enquiry is completed.
(1) Where in the case of a return under section 8 or 8A of this Act—
(a) alternative methods are allowed by the Tax Acts for bringing amounts into charge to tax,
(b) the return is made using one of those methods but could have been made using an alternative method, and
(c) an officer of the Board determines which of the alternative methods is to be used,
the officer’s determination is final and conclusive, for the purposes of any enquiry into the return, as to the basis of charge to be used.
(2) For the purposes of this section the cases where the Tax Acts allow alternative methods for bringing amounts into charge to tax are where they may be brought into charge either—
(a) in computing profits chargeable to tax under Case I or II of Schedule D, or
(b) as amounts within Case III, IV or V of that Schedule.”.
(2) In section 9A(2)(a) of the Taxes Management Act 1970 (c. 9) (as substituted by sub-paragraph (1) above) as it applies in relation to returns for years of assessment before the year 2001-02, for “up to the end of the period of twelve months after the filing date” substitute “twelve months beginning with that date”.
5 (1) For section 12AC of the Taxes Management Act 1970 (c. 9) (power to enquire into partnership return) substitute—
(1) An officer of the Board may enquire into a partnership return if he gives notice of his intention to do so (“notice of enquiry”)—
(a) to the partner who made and delivered the return, or his successor,
(b) within the time allowed.
(2) The time allowed is—
(a) if the return was delivered on or before the filing date, up to the end of the period of twelve months after the filing date;
(b) if the return was delivered after the filing date, up to and including the quarter day next following the first anniversary of the day on which the return was delivered;
(c) if the return is amended under section 12ABA of this Act, up to and including the quarter day next following the first anniversary of the day on which the amendment was made.
For this purpose the quarter days are 31st January, 30th April, 31st July and 31st October.
(3) A return which has been the subject of one notice of enquiry may not be the subject of another, except one given in consequence of an amendment (or another amendment) of the return under section 12ABA of this Act.
(4) An enquiry extends to anything contained in the return, or required to be contained in the return, including any claim or election included in the return, subject to the following limitation.
(5) If the notice of enquiry is given as a result of an amendment of the return under section 12ABA of this Act—
(a) at a time when it is no longer possible to give notice of enquiry under subsection (2)(a) or (b) above, or
(b) after an enquiry into the return has been completed,
the enquiry into the return is limited to matters to which the amendment relates or which are affected by the amendment.
(6) The giving of notice of enquiry under subsection (1) above at any time shall be deemed to include the giving of notice of enquiry—
(a) under section 9A(1) of this Act to each partner who at that time has made a return under section 8 or 8A of this Act or at any subsequent time makes such a return, or
(b) under paragraph 24 of Schedule 18 to the Finance Act 1998 to each partner who at that time has made a company tax return or at any subsequent time makes such a return.
(7) In this section “the filing date” means the day specified in the notice under section 12AA(2) of this Act or, as the case may be, subsection (3) of that section.
(1) This section applies if a partnership return is amended under section 12ABA of this Act (amendment of partnership return by taxpayer) at a time when an enquiry is in progress into the return.
(2) The amendment does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry.
(3) So far as the amendment affects any amount stated in the partnership statement included in the return, it does not take effect while the enquiry is in progress and—
(a) if the officer states in the closure notice that he has taken the amendment into account and that—
(i) the amendment has been taken into account in formulating the amendments contained in the notice, or
(ii) his conclusion is that the amendment is incorrect,
the amendment shall not take effect;
(b) otherwise, the amendment takes effect when the closure notice is issued.
(4) Where the effect of an amendment is deferred under subsection (3) above—
(a) no amendment to give effect to that amendment (“the deferred amendment”) shall be made under section 12ABA(3) of this Act (consequential amendment of partners' returns) while the enquiry is in progress;
(b) if the deferred amendment does not take effect but is taken into account as mentioned in subsection (3)(a)(i) above, section 28B(4) of this Act (amendment of partners' returns consequential on amendment of partnership return by closure notice) applies accordingly; and
(c) if the deferred amendment takes effect under subsection (3)(b) above, any necessary amendment under section 12ABA(3) of this Act may then be made.
(5) For the purposes of this section the period during which an enquiry is in progress is the whole of the period—
(a) beginning with the day on which notice of enquiry is given, and
(b) ending with the day on which the enquiry is completed.
(1) Where in the case of a partnership return—
(a) alternative methods are allowed by the Tax Acts for bringing amounts into charge to tax,
(b) the return is made using one of those methods but could have been made using an alternative method, and
(c) an officer of the Board determines which of the alternative methods is to be used,
the officer’s determination is final and conclusive, for the purposes of any enquiry into the return, as to the basis of charge to be used.
(2) For the purposes of this section the cases where the Tax Acts allow alternative methods for bringing amounts into charge to tax are those specified—
(a) for income tax purposes, in section 9D(2) of this Act;
(b) for corporation tax purposes, in paragraph 84(2) or (3) of Schedule 18 to the Finance Act 1998.”.
(2) In section 12AC(2)(a) of the Taxes Management Act 1970 (c. 9) (as substituted by sub-paragraph (1) above) as it applies in relation to returns for years of assessment before the year 2001-02, for “up to the end of the period of twelve months after the filing date” substitute “twelve months beginning with that date”.
6 (1) After Part 3 of the Taxes Management Act 1970 insert—
(1) At any time when an enquiry is in progress under section 9A(1) or 12AC(1) of this Act, any question arising in connection with the subject-matter of the enquiry may be referred to the Special Commissioners for their determination.
(2) Notice of referral must be given—
(a) jointly by the taxpayer and an officer of the Board,
(b) in writing,
(c) to the Special Commissioners.
(3) The notice of referral must specify the question or questions being referred.
(4) More than one notice of referral may be given under this section in relation to an enquiry.
(5) For the purposes of this section the period during which an enquiry is in progress is the whole of the period—
(a) beginning with the day on which notice of enquiry is given, and
(b) ending with the day on which the enquiry is completed.
(6) In this section “the taxpayer” means—
(a) in relation to an enquiry under section 9A(1) of this Act, the person to whom the notice of enquiry was given;
(b) in relation to an enquiry under section 12AC(1) of this Act, the person to whom the notice of enquiry was given or his successor.
(1) Either party may withdraw a notice of referral under section 28ZA of this Act by notice in accordance with this section.
(2) Notice of withdrawal must be given—
(a) in writing,
(b) to the other party to the referral and to the Special Commissioners,
(c) before the first hearing by the Special Commissioners in relation to the referral.
(1) The Lord Chancellor may make provision by regulations with respect to referrals to the Special Commissioners under—
(a) section 28ZA of this Act, or
(b) paragraph 31A of Schedule 18 to the Finance Act 1998.
(2) Regulations under subsection (1) above may, in particular—
(a) make provision with respect to any of the matters dealt with in the following provisions of this Act—
(i) section 50 (procedure before the Special Commissioners),
(ii) section 56 (statement of case for opinion of the High Court),
(iii) section 56A (appeals from the Special Commissioners), and
(iv) section 58 (proceedings in Northern Ireland), or
(b) provide for any of those provisions to apply, with such modifications as may be specified in the regulations, in relation to a referral to the Special Commissioners under the provisions mentioned in subsection (1) above.
(3) Regulations under subsection (1) above may—
(a) make different provision for different cases or different circumstances, and
(b) contain such supplementary, incidental, consequential and transitional provision as the Lord Chancellor thinks appropriate.
(4) Regulations under subsection (1) above shall—
(a) be made by statutory instrument, and
(b) be subject to annulment in pursuance of a resolution of either House of Parliament.
(5) In the following provisions any reference to an appeal includes a reference to a referral under section 28ZA of this Act or paragraph 31A of Schedule 18 to the Finance Act 1998—
(a) sections 56B, 56C and 56D of this Act (power of the Lord Chancellor to make regulations about the practice and procedure to be followed in connection with appeals to the Special Commissioners); and
(b) section 57 of this Act (power of the Board to make regulations about appeals relating to chargeable gains).
(6) Any regulations under section 56B or 57 of this Act which are in force immediately before the commencement of subsection (1) above shall apply in relation to referrals under section 28ZA of this Act or paragraph 31A of Schedule 18 to the Finance Act 1998, subject to any necessary modifications, as they apply in relation to appeals to the Special Commissioners.
(7) Regulations under this section relating to proceedings in Scotland shall not be made except with the consent of the Scottish Ministers.
(1) While proceedings on a referral under section 28ZA of this Act are in progress in relation to an enquiry—
(a) no closure notice shall be given in relation to the enquiry, and
(b) no application may be made for a direction to give such a notice.
(2) For the purposes of this section proceedings on a referral are in progress where—
(a) notice of referral has been given,
(b) the notice has not been withdrawn, and
(c) the questions referred have not been finally determined.
(3) For the purposes of subsection (2)(c) above a question referred is finally determined when—
(a) it has been determined by the Special Commissioners, and
(b) there is no further possibility of that determination being varied or set aside (disregarding any power to give permission to appeal out of time).
(1) The determination of a question referred to the Special Commissioners under section 28ZA of this Act is binding on the parties to the referral in the same way, and to the same extent, as a decision on a preliminary issue in an appeal.
(2) The determination shall be taken into account by an officer of the Board—
(a) in reaching his conclusions on the enquiry, and
(b) in formulating any amendments of the return required to give effect to those conclusions.
(3) Any right of appeal under section 31(1)(a), (b) or (c) of this Act may not be exercised so as to reopen the question determined except to the extent (if any) that it could be reopened if it had been determined as a preliminary issue in that appeal.”.
(2) This paragraph applies—
(a) where the notice of enquiry is given after the passing of this Act, or
(b) where the enquiry is in progress immediately before the passing of this Act.
For the purposes of paragraph (b) an enquiry is in progress until the officer’s enquiries fall to be treated as completed under section 28A(5) or, as the case may be, section 28B(5) of the Taxes Management Act 1970 (c. 9) (as those provisions had effect apart from this Schedule).
Finance Act 2001