Office of Public Sector Information
Section 113
1 (1) An officer of Revenue and Customs may by notice in writing require a person (“the taxpayer”)—
(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.
(2) In this Schedule, “taxpayer notice” means a notice under this paragraph.
2 (1) An officer of Revenue and Customs may by notice in writing require a person—
(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”).
(2) A third party notice must name the taxpayer to whom it relates, unless the First-tier Tribunal 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.
3 (1) An officer of Revenue and Customs may not give a third party notice without—
(a) the agreement of the taxpayer, or
(b) the approval of the First-tier Tribunal.
(2) An officer of Revenue and Customs may ask for the approval of the First-tier Tribunal 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)).
(3) The First-tier Tribunal 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 Tribunal is satisfied that, in the circumstances, the officer giving the notice is justified in doing so,
(c) the person to whom the notice is 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 First-tier Tribunal 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 First-tier Tribunal is satisfied that taking the action specified in those paragraphs might prejudice the assessment or collection of tax.
(5) Where the First-tier Tribunal 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.
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 First-tier Tribunal has disapplied this requirement.
(2) The First-tier Tribunal 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 Tribunal 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.
5 (1) An authorised officer of Revenue and Customs may by notice in writing require a person—
(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 UK tax position 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 First-tier Tribunal.
(4) The First-tier Tribunal may not give its approval for the purpose of 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 the Taxes Acts, VATA 1994 or any other enactment relating to value added tax charged in accordance with that Act,
(c) any such failure is likely to have led or to lead to serious prejudice to the assessment or collection of UK tax, and
(d) the information or document to which the notice relates is not readily available from another source.
(5) In this paragraph “UK tax” means any tax other than relevant foreign tax and value added tax charged in accordance with the law of another member State.
6 (1) In this Schedule, “information notice” means a notice under paragraph 1, 2 or 5.
(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 First-tier Tribunal, it must state that it is given with that approval.
7 (1) Where a person is required by an information notice to provide information or produce a document, the person must do so—
(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.
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.
(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.
9 This Part of this Schedule has effect subject to Parts 4 and 6 of this Schedule.
10 (1) An officer of Revenue and Customs may enter a person’s business premises and inspect—
(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, excluding documents,
“business documents” means documents (or copies of documents)—
that relate to the carrying on of a business by any person, and
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.
11 (1) This paragraph applies where an officer of Revenue and Customs has reason to believe that—
(a) premises are used in connection with the supply of goods under taxable supplies and goods to be so supplied are on those premises,
(b) premises are used in connection with the acquisition of goods from other member States under taxable acquisitions and goods to be so acquired are on those premises, or
(c) premises are used as 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 such goods.
(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 sub-paragraph (1) and in VATA 1994 have the same meaning in that sub-paragraph as they have in that Act.
12 (1) An inspection under this Part of this Schedule may be carried out only—
(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 with the approval of the First-tier Tribunal (see paragraph 13), it must state that it is given with that approval.
13 (1) An officer of Revenue and Customs may ask the First-tier Tribunal to approve an inspection under this Part of this Schedule.
(2) The First-tier Tribunal may not approve an inspection unless—
(a) an application for approval is made by, or with the agreement of, an authorised officer of Revenue and Customs, and
(b) the Tribunal is satisfied that, in the circumstances, the inspection is justified.
14 This Part of this Schedule has effect subject to Parts 4 and 6 of this Schedule.
15 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.
16 (1) Where a document is produced to, or inspected by, an officer of Revenue and Customs, such an officer may—
(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.
17 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, assets and documents that have been inspected.
18 An information notice only requires a person to produce a document if it is in the person’s possession or power.
19 (1) An information notice does not require a person to provide or produce—
(a) information that relates to the conduct of a pending appeal relating to tax 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.
20 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.
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.
(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 D 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.
(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 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 that person’s VAT position.
(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 referred to in paragraph 64(2) (PAYE etc).
22 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.
23 (1) An information notice does not require a person—
(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 First-tier Tribunal 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, and
(b) the procedures to be followed.
24 (1) An information notice does not require a person who has been appointed as an auditor for the purpose of an enactment—
(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.
25 (1) An information notice does not require a tax adviser—
(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 person in relation to whose tax affairs he has been appointed, or
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).
26 (1) Paragraphs 24(1) and 25(1) do not have effect in relation to—
(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).
(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.
28 An officer of Revenue and Customs may not inspect a business 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.
29 (1) Where a taxpayer is given a taxpayer notice, the taxpayer may appeal to the First-tier Tribunal against the notice or any requirement in the notice.
(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 First-tier Tribunal approved the giving of the notice in accordance with paragraph 3.
30 (1) Where a person is given a third party notice, the person may appeal to the First-tier Tribunal 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.
(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 First-tier Tribunal approved the giving of the notice in accordance with paragraph 3.
31 Where a person is given a notice under paragraph 5, the person may appeal to the First-tier Tribunal 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.
32 (1) Notice of an appeal under this Part of this Schedule must be given—
(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 the First-tier 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 First-tier Tribunal 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 Tribunal, or
(b) if the Tribunal does not specify a period, within such period as is reasonably specified in writing by an officer of Revenue and Customs following the Tribunal’s decision.
(5) A decision by the First-tier 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.
33 This Part of this Schedule has effect subject to Part 6 of this Schedule.
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—
(a) the supply of goods or services,
(b) the acquisition of goods from another member State, or
(c) the importation of goods from a place outside the member States 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 to the First-tier Tribunal against the notice or any requirement in the notice.
(4) Sections 5, 11 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.
35 (1) This paragraph applies where an undertaking is a parent undertaking in relation to another undertaking (a subsidiary undertaking).
(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, paragraph 2 only requires the notice to state this and name 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.
(4) Where a third party notice is given to the parent undertaking for the purpose of checking the tax position of one or more subsidiary undertakings—
(a) paragraphs 3(1) and 4(1) (approval etc of notices and copying third party notices to taxpayer) do not apply to the notice, but
(b) paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made tax return) applies as if the notice was a taxpayer notice or taxpayer notices given to the subsidiary undertaking or each of the 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 the notice, sub-paragraph (3) of that paragraph (approval of First-tier Tribunal) does not apply.
(6) Where a third party notice or a notice under paragraph 5 is given to the parent undertaking for the purpose of checking the tax position of one or more subsidiary undertakings, 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.
(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)).
Finance Act 2008