Finance Bill

House of Commons

Session 2008 - 09
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Other Bills before Parliament

Finance Bill

Finance Bill
Schedule 48 — Extension of information and inspection powers
352

      (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 12A
12B   (1)
An inspection under paragraph 12A may be carried out only if
5
condition A or B is satisfied.
      (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
10
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.
15
      (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.
20
      (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
25
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
30
(b)
any other person who appears to the officer to be in charge
of the premises or property.”
6     (1)
Paragraph 13 (approval of tribunal) is amended as follows.
      (2)
In sub-paragraph (1), insert at the end “(and for the effect of obtaining such
approval see paragraph 39 (penalties))”.
35
      (3)
In sub-paragraph (1A) (inserted by Schedule 47), insert at the end “(except
as required under sub-paragraph (2A))”.
      (4)
In sub-paragraph (2), after “an inspection” insert “under paragraph 10, 10A
or 11”.
      (5)
After that sub-paragraph insert—
40
   “(2A)
The tribunal may not approve an inspection under paragraph 12A
unless—

Finance Bill
Schedule 48 — Extension of information and inspection powers
353

(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
5
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
10
representations made, and
(e)
the tribunal is satisfied that, in the circumstances, the
inspection is justified.
     (2B)
Paragraphs (c) and (d) of sub-paragraph (2A) do not apply if the
tribunal is satisfied that the occupier of the premises cannot be
15
identified.”
7
In paragraph 17(b) (power to record information), after “premises,” insert
“property, goods,”.
8     (1)
Paragraph 21 (restrictions on giving taxpayer notices) is amended as
follows.
20
      (2)
In sub-paragraph (7), for “VAT position” substitute “position as regards any
tax other than income tax, capital gains tax or corporation tax”.
      (3)
In the heading, insert at the end “following tax return”.
9
After that paragraph insert—
“Taxpayer notices following land transaction return
25
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.
30
      (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 a notice of enquiry has been given in respect
of—
(a)
the return, or
35
(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
40
FA 2003.
      (5)
Condition B is that, as regards the person, an officer of Revenue
and Customs has reason to suspect that—

Finance Bill
Schedule 48 — Extension of information and inspection powers
354

(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
5
(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
10
stamp duty land tax.”
10
In paragraph 28 (restrictions on inspection of business documents), and in
the heading before that paragraph, omit “business”.
11
After paragraph 34 insert—
“Involved third parties
15
34A   (1)
This paragraph applies to a third party notice or a notice under
paragraph 5 if—
(a)
it is given to an involved third party (see paragraph 61A),
(b)
it is given for the purpose of checking the position of a
person, or a class of persons, as regards the relevant tax,
20
and
(c)
it refers only to relevant information or relevant
documents.
      (2)
In relation to such a third party notice—
(a)
paragraph 3(1) (approval etc of third party notices) does
25
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.
30
      (3)
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
35
(b)
paragraph 31 (appeal) has effect as if it permitted an appeal
on any grounds.
      (4)
The involved third party may not appeal against a requirement in
the notice to provide any information, or produce any document,
that forms part of the involved third party’s statutory records.
40
      (5)
In relation to an involved third party, “relevant documents”,
“relevant information” and “relevant tax” are defined in
paragraph 61A.

Finance Bill
Schedule 48 — Extension of information and inspection powers
355

Registered pension schemes etc
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.
      (2)
“Pensions matter” means any matter relating to—
5
(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, or
(c)
an employer-financed retirement benefits scheme.
10
      (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
15
(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
20
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.
      (5)
A person may not appeal against a requirement in the notice to
25
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
30
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.
35
      (8)
Sub-paragraphs (6) and (7) 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
34C
In paragraph 34B—
40
“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;
45

Finance Bill
Schedule 48 — Extension of information and inspection powers
356

“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
5
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
10
4 of Part 14 of ICTA;
“prescribed” means prescribed by regulations made by the
Commissioners;
“registered pension scheme” means a pension scheme that is
or has been a registered pension scheme within the
15
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
20
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).”
25
12
In paragraph 35 (special cases: groups of undertakings), in sub-paragraph
(4A)(c) (inserted by Schedule 47)—
(a)
for “paragraph 21” substitute “paragraphs 21 and 21A”, and
(b)
for “applies” substitute “apply”.
13
In paragraph 37 (special cases: partnerships), after sub-paragraph (2)
30
insert—
   “(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
35
(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.”
40
14
After paragraph 61 insert—
“Involved third parties
61A   (1)
In this Schedule, “involved third party” means a person described
in the first column of the Table below.
      (2)
In this Schedule, in relation to an involved third party, “relevant
45
information”, “relevant document” and “relevant tax” have the
meaning given in the corresponding entries in that Table.

Finance Bill
Schedule 48 — Extension of information and inspection powers
357

Involved third party
Relevant information
Relevant tax

and relevant

documents

1.
A body approved by an
Information and
Income tax

officer of Revenue and
documents relating

5

Customs for the purpose of
to the donations

paying donations within the

meaning of Part 12 of ITEPA

2003 (donations to charity:

payroll giving) (see section

10

714 of that Act)

2.
A plan manager (see section
Information and
Income tax

696 of ITTOIA 2005
documents relating

(managers of individual
to the plan,

investment plans))
including

15

investments which

are or have been

held under the plan

3.
An account provider in
Information and
Income tax

relation to a child trust fund
documents relating

20

(as defined in section 3 of
to the fund,

the Child Trust Funds Act
including

2004)
investments which

are or have been

held under the fund

25

4.
A person who is or has been
Information and
Income tax

registered as a managing
documents relating
Capital gains tax

agent at Lloyd’s in relation
to, and to the
Corporation tax

to a syndicate of
activities of, the

underwriting members of
syndicate

30

Lloyd’s

5.
A person involved (in any
Information and
Insurance

capacity) in an insurance
documents relating
premium tax

business (as defined for the
to contracts of

purposes of Part 3 of FA
insurance entered

35

1994)
into in the course of

the business

6.
A person who makes
Information and
Insurance

arrangements for persons to
documents relating
premium tax

enter into contracts of
to the contracts

40

insurance

7.
A person who—
Information and
Insurance

(a)
is concerned in a
documents relating
premium tax

business that is not
to the contracts

an insurance

45

business (as

defined for the

purposes of Part 3

of FA 1994), and

(b)
has been involved

50

in the entry into a

contract of

insurance

providing cover

for any matter

55

associated with

that business

Finance Bill
Schedule 49 — Powers to obtain contact details for debtors
358

Involved third party
Relevant information
Relevant tax

and relevant

documents

8.
A person who, in relation to
Information and
Stamp duty

a charge to stamp duty
documents relating
reserve tax

5

reserve tax on an
to the agreement,

agreement, transfer, issue,
transfer, issue,

appropriation or surrender,
appropriation or

is an accountable person (as
surrender

defined in regulation 2 of

10

the Stamp Duty Reserve Tax

Regulations S.I. 1986/1711

(as amended from time to

time))

9.
A responsible person in
Information and
Petroleum

15

relation to an oil field (as
documents relating
revenue tax

defined for the purposes of
to the oil field

Part 1 of OTA 1975)

10.
A person involved (in any
Information and
Aggregates levy

capacity) in subjecting
documents relating

20

aggregate to exploitation in
to matters in which

the United Kingdom (as
the person is or has

defined for the purposes of
been involved

Part 2 of FA 2001) or in

connected activities

25

11.
A person involved (in any
Information and
Climate change

capacity) in making or
documents relating
levy

receiving taxable
to matters in which

commodities (as defined for
the person is or has

the purposes of Schedule 6
been involved

30

to FA 2000) or in connected

activities

12.
A person involved (in any
Information and
Landfill tax”.

capacity) with any landfill
documents relating

disposal (as defined for the
to the disposal

35

purposes of Part 3 of FA

1996)

15    (1)
Paragraph 62 (meaning of “statutory records”) is amended as follows.
      (2)
In sub-paragraph (1), for paragraph (b) substitute—
“(b)
any other enactment relating to a tax,”.
40
      (3)
In sub-paragraph (2)(b), for “VATA 1994 or any other enactment relating to
value added tax” substitute “any other enactment relating to a tax”.
Schedule 49
Section 96

Powers to obtain contact details for debtors
Requirement for contact details for debtor
45
1     (1)
This Schedule applies where—
(a)
a sum is payable by a person (“the debtor”) to the Commissioners
under or by virtue of an enactment or under a contract settlement,
(b)
an officer of Revenue and Customs reasonably requires contact
details for the debtor for the purpose of collecting that sum,
50