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T3: Direct recovery and deductions

Distraint no longer available in England and Wales

Distraint no longer available in England and Wales

Does not apply in England and Wales as of 6 April 2014 (former TMA 1970, s.61). Nevertheless, they now have the power to take control of goods.
 

TAKING CONTROL OF GOODS

 

"(1) This section applies if a person does not pay a sum that is payable by that person to the Commissioners under or by virtue of an enactment or under a contract settlement.
(2) The Commissioners may use the procedure in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 (c. 15) (taking control of goods) to recover that sum.
(3) This section extends to England and Wales only." (FA 2008, s.127)

“Since 6 April 2014, HMRC has a right “to take control of goods” in a case where a taxpayer does not pay a sum which is due under an enactment. Section 127 of Finance Act 2008 provides that HMRC can, in such a case, use the procedure in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 (“TCEA”) to recover the sum due by way of tax. Under Schedule 12 of TCEA, only an enforcement officer authorised by section 63(2) of TCEA may take control of goods. There is a relevant exemption in relation to an officer of HMRC: see sections 62(2) and 63(3)(b) of TCEA. Paragraph 7 of Schedule 12 provides that an enforcement officer may not take control of goods unless the debtor has been given notice and the same paragraph provides for Regulations to be made as to the period and form of such notice. Paragraph 66 of Schedule 12 to TCEA identifies the remedies available to a debtor where an enforcement agent breaches a provision of Schedule 12 or acts under an enforcement power which is defective. Paragraph 66 permits the debtor to bring proceedings under that paragraph and confers certain powers on the court but the list of powers is without prejudice to any other powers of the court. The Taking Control of Goods Regulations 2013 have been made pursuant to the powers contained in TCEA. Part 2 of the Regulations specifies the procedure to be used for taking control of goods. Paragraphs 6, 7 and 8 deal with the minimum period of notice, the form and contents of such notice and the method of giving such notice.” (R (oao Derry) v. HMRC [2015] UKUT 416 (TCC), §30, Morgan J).
 

TAKING CONTROL OF GOODS​

Exempt goods

 

"(1) Subject to paragraph (2) and to regulation 5, the following goods of the debtor are exempt goods—

[...]

(b) such clothing, bedding, furniture, household equipment, items and provisions as are reasonably required to satisfy the basic domestic needs of the debtor and every member of the debtor's household, including (but not restricted to)—

(i) a cooker or microwave;

(ii) a refrigerator;

(iii) a washing machine;

(iv) a dining table large enough, and sufficient dining chairs, to seat the debtor and every member of the debtor's household;

(v) beds and bedding sufficient for the debtor and every member of the debtor's household;

(vi) one landline telephone, or if there is no landline telephone at the premises, a mobile or internet telephone which may be used by the debtor or a member of the debtor's household;

(vii) any item or equipment reasonably required for—

(aa) the medical care of the debtor or any member of the debtor's household;

(bb) safety in the dwelling-house; or

(cc) the security of the dwelling-house (for example, an alarm system) or security in the dwelling-house;

(viii) sufficient lamps or stoves, or other appliance designed to provide lighting or heating facilities, to satisfy the basic heating and lighting needs of the debtor's household; and

(ix) any item or equipment reasonably required for the care of—

(aa) a person under the age of 18;

(bb) a disabled person; or

(cc) an older person;

(c) assistance dogs (including guide dogs, hearing dogs and dogs for disabled persons), sheep dogs, guard dogs or domestic pets;

(d) a vehicle on which a valid disabled person's badge is displayed because it is used for, or in relation to which there are reasonable grounds for believing that it is used for, the carriage of a disabled person;

(e) a vehicle (whether in public ownership or not) which is being used for, or in relation to which there are reasonable grounds for believing that it is used for, police, fire or ambulance purposes; and

(f) a vehicle displaying a valid British Medical Association badge or other health emergency badge because it is being used for, or in relation to which there are reasonable grounds for believing that it is used for, health emergency purposes." (SI 2013/1894, r.4(1))

"Where any goods of the debtor are also premises and are occupied by the debtor or another person as the debtor's or that person's only or principal home, those goods are exempt goods." (SI 2013/1894, r.5)

Note that the exemption for business goods does not apply to FA 2008, s.127 (SI 2013/1894, r.4(2)(iv))

Exempt goods

Conditions for court approval

 

"(1) This regulation applies where the enforcement agent has power to enter premises under paragraph 14 or 15 of Schedule 12.

(2) The conditions of which the court must be satisfied before it issues a warrant under paragraph 20(2) of Schedule 12, or includes provision in a warrant under paragraph 21(2) of that Schedule, are—

(a) either—

(i) the enforcement agent is attempting to recover a debt enforceable under section 127 of the Finance Act 2008; or

(ii) the premises are premises to which the goods have been deliberately removed in order to avoid control being taken of them;

(b) there are, or are likely to be, goods of the debtor on the premises of which control can be taken;

(c) the enforcement agent has explained to the court—

(i) the likely means of entry, and the type and amount of force that will be required to make the entry;

(ii) how, after entry, the enforcement agent proposes to leave the premises in a secure state; and

(d) in all the circumstances it is appropriate for the court to give an authorisation, having regard (among other matters) to—

(i) the sum outstanding;

(ii) the nature of the debt." (SI 2013/1894, r.28)

Conditions for court approval

Requirement for notice of enforcement​

 

"(1) An enforcement agent may not take control of goods unless the debtor has been given notice.

(2) Regulations must state—

(a) the minimum period of notice;

(b) the form of the notice;

(c) what it must contain;

(d) how it must be given;

(e) who must give it.

(3) The enforcement agent must keep a record of the time when the notice is given.

(4) If regulations authorise it, the court may order in prescribed circumstances that the notice given may be less than the minimum period.

(5) The order may be subject to conditions." (TCEA 2007, Sch 12, para 7)

Requirement for notice of enforcement​

- 7 clear days before enforcement occurs​

 

"(1) Subject to paragraph (3), notice of enforcement must be given to the debtor not less than 7 clear days before the enforcement agent takes control of the debtor's goods.

(2) Where the period referred to in paragraph (1) includes a Sunday, bank holiday, Good Friday or Christmas Day that day does not count in calculating the period.

(3) The court may order that a specified shorter period of notice may be given to the debtor.

(4) The court may only make an order under paragraph (3) where it is satisfied that, if the order is not made, it is likely that goods of the debtor will be moved to premises other than relevant premises, or otherwise disposed of, in order to avoid the goods being taken control of by the enforcement agent." (SI 2013/1894, r.6)

- 7 clear days before enforcement occurs​

- Form of notice

 

"Notice of enforcement must be given in writing, and must contain the following information—

(a) the name and address of the debtor;

(b) the reference number or numbers;

(c) the date of notice;

(d) details of the court judgment or order or enforcement power by virtue of which the debt is enforceable against the debtor;

(e) the following information about the debt—

(i) sufficient details of the debt to enable the debtor to identify the debt correctly;

(ii) the amount of the debt including any interest due as at the date of the notice;

(iii) the amount of any enforcement costs incurred up to the date of notice; and

(iv) the possible additional costs of enforcement if the sum outstanding should remain unpaid as at the date mentioned in paragraph (h);

(f) how and between which hours and on which days payment of the sum outstanding may be made;

(g) a contact telephone number and address at which, and the days on which and the hours between which, the enforcement agent or the enforcement agent's office may be contacted; and

(h) the date and time by which the sum outstanding must be paid to prevent goods of the debtor being taken control of and sold and the debtor incurring additional costs." (SI 2013/1894, r.7)

- Form of notice

- Method of giving notice​

 

"(1) Notice of enforcement must be given—

(a) by post addressed to the debtor at the place, or one of the places, where the debtor usually lives or carries on a trade or business;

(b) by fax or other means of electronic communication;

(c) by delivery by hand through the letter box of the place, or one of the places, where the debtor usually lives or carries on a trade or business;

(d) where there is no letterbox, by affixing the notice at or in a place where it is likely to come to the attention of the debtor;

(e) where the debtor is an individual, to the debtor personally; or

(f) where the debtor is not an individual (but is, for example, a company, corporation or partnership), by delivering the notice to—

(i) the place, or one of the places, where the debtor carries on a trade or business; or

(ii) the registered office of the company or partnership.

(2) Notice must be given by the enforcement agent or the enforcement agent's office." (SI 2013/1894, r.8)

- Method of giving notice​

Injunction where debt disputed

“Under the procedures in relation to taking control of goods, HMRC has to give notice of its intended action. If HMRC gave such a notice and the taxpayer wished to challenge that action on the ground that there was no tax due and payable, then it would be open to the taxpayer to claim an injunction to restrain the threatened action. In their submissions before me, HMRC referred to such a claim to an injunction as being available as part of a claim for judicial review. I doubt if the taxpayer would have to seek a judicial review in order to obtain such an injunction. I do not see why he could not seek an injunction on the basis that HMRC is threatening to interfere with his possession of his goods. The taxpayer could rely on his ownership and/or possession of the goods. It does not seem to me to be necessary to frame the claim in public law.” (R (oao Derry) v. HMRC [2015] UKUT 416 (TCC), §72, Morgan J).

Injunction where debt disputed

Time limit for enforcement after notice​

 

"(1) Subject to paragraphs (2), (3) and (5), the enforcement agent may not take control of goods of the debtor after the expiry of a period of 12 months beginning with the date of notice of enforcement.

(2) Where—

(a) after giving notice of enforcement the enforcement agent enters into an arrangement with the debtor for the repayment, by the debtor, of the sum outstanding by instalments (a repayment arrangement); and

(b) the debtor breaches the terms of the repayment arrangement,

the period in paragraph (1) begins with the date of the debtor's breach of the repayment arrangement.

(3) The court may order that the period in paragraph (1) be extended by 12 months.

(4) The court may make an order under paragraph (3) only—

(a) on application by the enforcement agent or the creditor;

(b) on one occasion; and

(c) if the court is satisfied that the applicant has reasonable grounds for not taking control of goods of the debtor during the period referred to under paragraph (1).

(5) Where the relevant day falls—

(a) during the emergency period; or

(b) on or after 26th February 2020 but before the beginning of the emergency period,

the period referred to in paragraph (1) begins on the day that is one month after the relevant day.

(6) For the purposes of paragraph (5) the relevant day is the day one month before the expiry of either—

(a) the period referred to in paragraph (1); or

(b) the period referred to in paragraph (1) as extended in accordance with paragraph (3)." (SI 2013/1894, r.9)

Time limit for enforcement after notice​

Method of taking control

Between 6am and 9pm on any day

"(1) Subject to paragraph (2), the enforcement agent may not take control of goods of the debtor before 6 am or after 9 pm on any day.

(2) Paragraph (1) does not apply where—

(a) the court, on application by the enforcement agent, orders otherwise;

(b) goods are located on the debtor's or another person's premises which are used (whether wholly or partly) to carry on a trade or business and the premises (or part of the premises) are open for the conduct of that trade or business during hours that are prohibited under paragraph (1); or

(c) the enforcement agent has begun to take control of goods during hours that are not prohibited under paragraph (1), or during hours to which paragraph (1) does not apply by virtue of sub-paragraph (a) or (b), and to complete taking control of goods it is reasonably necessary for the enforcement agent to continue to do so during prohibited hours, provided the duration of time spent in taking control of goods is reasonable." (SI 2013/1894, r.13)

Method of taking control​

Notice after entry

"(1) After entering the premises the enforcement agent must provide a notice for the debtor giving information about what the enforcement agent is doing.

(2) Regulations must state—

(a) the form of the notice;

(b) what information it must give.

(3) Regulations may prescribe circumstances in which a notice need not be provided after re-entry to premises.

(4) If the debtor is on the premises when the enforcement agent is there, the enforcement agent must give him the notice then.

(5) If the debtor is not there, the enforcement agent must leave the notice in a conspicuous place on the premises.

(6) If the enforcement agent knows that there is someone else there or that there are other occupiers, a notice he leaves under sub-paragraph (5) must be in a sealed envelope addressed to the debtor." (TCEA 2007, Sch 12, para 28)

"(1) This regulation applies to the notices required by paragraph 28(1) and paragraph 33(1) of Schedule 12.

(2) Subject to regulations 31 and 32, the notice must be in writing, be signed by the enforcement agent and contain the following information—

(a) the name and address of the debtor;

(b) the enforcement agent's name, the reference number or numbers and the date of the notice;

(c) that the enforcement agent has done one or more of the following—

(i) entered the premises;

(ii) taken control of goods on a highway;

(iii) entered a vehicle on a highway with the intention of taking control of goods;

(d) the address of the premises which the enforcement agent has entered or the location on the highway where the enforcement agent has taken control of goods or entered a vehicle;

(e) where a vehicle on a highway has been entered with the intention of taking control of goods, the manufacturer, model, colour and registration mark of that vehicle; and

(f) whether or not the enforcement agent has taken control of goods of the debtor and, if so, the location where and the time when control has been taken of the goods and—

(i) a list of the goods of which control has been taken with a description to enable the debtor to identify the goods correctly, including, where applicable—

(aa) the manufacturer, model and serial number of the goods;

(bb) in the case of a vehicle, the manufacturer, model, colour and registration mark of the vehicle; and

(cc) the material, colour and usage, and (where appropriate) any other identifying characteristic, of the goods;

(ii) the amount of the sum outstanding as at the date of the notice;

(iii) the date and time by which the sum outstanding must be paid to prevent the controlled goods being sold;

(iv) how and between which hours and on which days payment of the sum outstanding may be made; and

(v) that the controlled goods will be released on payment in full (or may be released on part payment) of the sum outstanding.

(3) Where the enforcement agent is—

(a) re-entering premises under paragraph 16 of Schedule 12 to inspect goods of which control has previously been taken; and

(b) not using force to effect the re-entry,

the requirement to provide notice under paragraph 28(1) of Schedule 12 does not apply.

(4) Paragraph (2)(f)(i) is complied with if—

(a) the enforcement agent provides the debtor with a list of goods of which control has been taken under regulation 15(3)(e) or regulation 33(1)(e) at the same time as the notice; and

(b) the goods of which control has been taken are the same as those referred to in the list mentioned in sub-paragraph (a)." (SI 2013/1894, r.30)

Notice after entry​

Inventory of goods taken

 

"(1) The inventory required by paragraph 34 of Schedule 12 must be in writing, be signed by the enforcement agent and contain the following information—

(a) the name and address of the debtor;

(b) the enforcement agent's name, the reference number or numbers and the date of the inventory;

(c) the name and address of the co-owner, if any;

(d) that the enforcement agent has taken control of the goods of the debtor or of the debtor and the co-owner as specified in the inventory; and

(e) a list of the goods of which control has been taken with a description to enable the debtor or the co-owner to identify the goods correctly, including, where applicable—

(i) the manufacturer, model and serial number of the goods;

(ii) in the case of a vehicle, the manufacturer, model, colour and registration mark of the vehicle; and

(iii) the material, colour and usage, and (where appropriate) any other identifying characteristic, of the goods.

(2) The inventory may be combined with a controlled goods agreement under regulation 15(1) or the notice required by paragraph 28(1) or 33(1) of Schedule 12 if—

(a) the enforcement agent provides the debtor with the inventory at the same time as the controlled goods agreement or the notice; and

(b) the goods of which control has been taken are the same as those listed in the list of goods of which control has been taken required by regulation 15(3)(e) or regulation 30(2)(f)(i)." (SI 2013/1894, r.33)

Inventory of goods taken

Sale

Sale

- Minimum period before sale (usually 7 days)

 

"(1) Subject to paragraph (2), the minimum period before sale required by paragraph 39 of Schedule 12 is 7 clear days from removing controlled goods for sale.

(2) Sale may take place on the day after removing controlled goods for sale where, if the sale were to take place after the expiry of the period of time referred to in paragraph (1), the goods would become unsaleable, or their sale value would be extinguished or substantially reduced due to the nature or any characteristic of those goods." (SI 2013/1894, r.37)

- Minimum period before sale (usually 7 days)

- Notice of sale

 

"(1) Subject to paragraph (2), the minimum period of notice of the date, time and place of sale required by paragraph 40 of Schedule 12 is 7 clear days before the sale of the goods.

(2) Notice may be given on the day before the sale of the goods where, if the sale were to take place after the expiry of the period of time referred to in paragraph (1), the goods would become unsaleable, or their sale value would be extinguished or substantially reduced due to the nature or any characteristic of those goods." (SI 2013/1894, r.37)

- Notice of sale

Payment before goods are sold

"(1) This paragraph applies where the debtor pays the amount outstanding in full—

(a) after the enforcement agent has taken control of goods, and

(b) before they are sold or abandoned.

(2) If the enforcement agent has removed the goods he must as soon as reasonably practicable make them available for collection by the debtor.

(3) No further step may be taken under the enforcement power concerned.

(4) For the purposes of this paragraph the amount outstanding is reduced by the value of any controlled goods consisting of money required to be used to pay that amount, and sub-paragraph (2) does not apply to that money." (TCEA 2007, Sch 12, para 58)

Payment before goods are sold

DEDUCTION NOTICES

DEDUCTION NOTICES

Pre-condition: relevant sum

 

"(1) In this Part of this Schedule “relevant sum”, in relation to a person, means a sum that is due and payable by the person to the Commissioners—

(a) under or by virtue of an enactment, or

(b) under a contract settlement, and in relation to which Conditions A to C are met." (FA(No.2) 2015, Sch 8, para 2)

Three conditions

"(2) Condition A is that the sum is at least £1,000.

(3) Condition B is that the sum is—

(a) an established debt (see sub-paragraph (5)),

(b) due under section 223 of, or paragraph 6 of Schedule 32 to, FA 2014 (accelerated payment notice or partner payment notice), or

(c) the disputed tax specified in a notice under section 221(2)(b) of FA 2014 (accelerated payment of tax: notice given pending appeal).

(4) Condition C is that HMRC is satisfied that the person is aware that the sum is due and payable by the person to the Commissioners." (FA(No.2) 2015, Sch 8, para 2)

Established debt

"(5) A sum that is due and payable to the Commissioners is an “established debt” if there is no possibility that the sum, or any part of it, will cease to be due and payable to the Commissioners on appeal.

(6) For the purposes of sub-paragraph (5) it does not matter whether the reason that there is no such possibility is—

(a) that there is no right of appeal in relation to the sum,

(b) that a period for bringing an appeal has expired without an appeal having been brought, or

(c) that an appeal which was brought has been finally determined or withdrawn;

and any power to grant permission to appeal out of time is to be disregarded." (FA(No.2) 2015, Sch 8, para 2)

Pre-condition: relevant sum

Step 1: information notice to identify accounts

 

"(1) This paragraph applies if it appears to HMRC that—
(a) a person has failed to pay a relevant sum, and

(b) that person holds one or more accounts with a deposit-taker.

(2) HMRC may give the deposit-taker a notice under this paragraph (an “information notice”) requiring the deposit-taker to provide HMRC with—

(a) prescribed information about accounts held by the person with the deposit-taker,

(b) in relation to any joint account held by the person with the deposit-taker, prescribed information about the other holder or holders of the account, and

(c) any other prescribed information." (FA(No.2) 2015, Sch 8, para 3)

 

Form of information notice

(5) An information notice must explain the effect of—

(a) sub-paragraph (4), and

(b) paragraph 14 (penalties)." (FA(No.2) 2015, Sch 8, para 3)

Only for the purpose of determining whether to give a hold notice

"(3) HMRC may exercise the power under sub-paragraph (2) only for the purposes of determining whether to give a hold notice to the deposit-taker in respect of the person concerned (see paragraph 4)." (FA(No.2) 2015, Sch 8, para 3)

Obligation to comply within 10 working days

"(4) Where a deposit-taker is given an information notice, it must comply with the notice as soon as reasonably practicable and, in any event, within the period of 10 working days beginning with the day on which the notice is given to it." (FA(No.2) 2015, Sch 8, para 3)

 

Prescribed information

"The following information is prescribed for the purposes of paragraph 3(2) of Schedule 8 (information notice)—

(a) account details for each account P holds with the deposit-taker;

(b) specified information in relation to P." (SI 2015/1986, r.4)

Account details

""account details” in respect of an account held by P means—

(a) any account number;

(b) any roll number;

(c) any sort code;

(d) the type of account, including whether or not it is a joint account;

(e) the account balance (in the currency in which the account is held);

(f) whether interest is payable in respect of amounts standing to the credit of the account and, if so, the rate of interest payable;

(g) any minimum balance required to keep the account open;

(h) any contractual term by virtue of which an account holder or interested third party may suffer economic loss where a hold notice or deduction notice is, or has been, given;

(i) specified information about—

(i) any account holder other than P;

(ii) any person (not falling within paragraph (i)) who is an interested third party in relation to the account;

(iii) any person who, in respect of the account, has power of attorney;" (SI 2015/1986, r.2)

Specified information

"“specified information” in respect of a person means—

(a) name and address;

(b) national insurance number;

(c) all email addresses;

(d) all telephone numbers;

(e) in respect of an account which is a joint account, the proportion of the balance of that joint account to which the person is entitled." (SI 2015/1986, r.2)

Step 1: information notice to identify accounts

- Information used solely for applying direct recovery rules

"[2.46] The Government has been clear that information requested under DRD would be used solely for assessing hardship, and to determine whether the £5,000 minimum balance HMRC proposed to leave behind in debtors’ bank accounts would be adequate." (Direct recovery of debts - summary of responses)

- Information used solely for applying direct recovery rules
Account

Account

Includes joint account

"In this Part of this Schedule a reference to an account held by a person includes a reference to a joint account held by that person and one or more other persons." (FA(No.2) 2015, Sch 8, para 22)

- Includes joint account

- Not stocks and shares ISA

"[1096] This section and Schedule introduce a new power to allow HM Revenue & Customs (HMRC) to recover debts due to it (including tax and tax credit debts) directly from the bank and building society accounts (including cash Individual Savings Accounts) of debtors. This is also known as the Direct Recovery of Debts (“DRD”)." (Explanatory Notes to F(No.2)A 2015)
"Following discussions with stakeholders, the government confirmed that debt recovery through DRD will not apply to stocks and shares ISAs." (Issue Briefing: Direct Recovery of Debts)
- Not stocks and shares ISA

Deposit taker

"“deposit-taker” means a person who may lawfully accept deposits in the United Kingdom in the course of a business (see sub-paragraph (2))" (FA(No.2) 2015, Sch 8, para 23)

"(2) The definition of “deposit-taker” in sub-paragraph (1) is to be read with—

(a) section 22 of the Financial Services and Markets Act 2000 (regulated activities),

(b) any relevant order under that section, and

(c) Schedule 2 to that Act." (FA(No.2) 2015, Sch 8, para 23)

Deposit taker

Step 2: Hold notice

 

"(1) If it appears to HMRC that—

(a) a person (“P”) has failed to pay a relevant sum, and

(b) P holds one or more accounts with a deposit-taker, HMRC may give the deposit-taker a notice under this paragraph (a “hold notice”)." (FA(No.2) 2015, Sch 8, para 4)

 

Form of hold notice

"(2) The hold notice must—

(a) specify P's name and last known address,

(b) specify as the “specified amount” an amount that meets the conditions in sub-paragraph (4),

(c) specify as the “safeguarded amount” an amount that meets the requirements set out in sub-paragraphs (6) to (8),

(d) set out any rules which are to apply for the purposes of paragraph 7(5)(b) (priority of accounts subject to a hold notice),

(e) explain the effect of—

(i) paragraphs 6 to 13 (effect of hold notice, duty to notify account holders etc),

(ii) paragraph 14 (penalties), and

(iii) any regulations under paragraph 20(2)(c) or (d) (powers to restrict the accounts or amounts in relation to which a hold notice may have effect, in addition to the powers to make provision in the hold notice under sub-paragraph (3)(b) and (c)), and

(f) contain a statement about HMRC's compliance with paragraph 5 in relation to the notice.

For provision about the particular relevant sums to which a hold notice relates see paragraph 8(6)(a)(ii) and (7) (notice to be given by HMRC to P).

 

(3) The hold notice may—

(a) specify any other information which HMRC considers might assist the deposit-taker in identifying accounts which P holds with it;

(b) specify an account, or description of account, which is to be treated for the purposes of the hold notice and this Part of this Schedule as not being an account held by P with the deposit-taker;

(c) require that an amount specified in the notice is to be treated for the purposes of the hold notice and this Part of this Schedule as if it were not an amount standing to the credit of a specified account held by P." (FA(No.2) 2015, Sch 8, para 4)

 

In writing

"“notice” means notice in writing;" (FA(No.2) 2015, Sch 8, para 23)

Specified amount

"(4) The amount specified as the specified amount in the hold notice (“the current hold notice”) must not exceed so much of the notified sum (see paragraph 8(6) to (8)) as remains after deducting—

(a) the amount specified as the “specified amount” in any hold notice which relates to the same debts as the current hold notice (see subparagraph (5)) and is given to another deposit-taker on the same day as that notice, and

(b) the amount specified as the “specified amount” in any hold notice which relates to the same debts as the current hold notice and is given to a deposit-taker on an earlier day, (unless HMRC has received a notification under paragraph 8(4) in relation to that earlier hold notice)." (FA(No.2) 2015, Sch 8, para 4)

Hold notices relating to the same debt

"(5) For the purposes of this paragraph, any two hold notices given in respect of the same person “relate to the same debts” if at least one relevant sum specified in relation to one of those notices by virtue of paragraph 8(7)(a) is the same debt as a relevant sum so specified in relation to the other notice." (FA(No.2) 2015, Sch 8, para 4)

 

Safeguarded amount

"(6) The amount specified in the hold notice as the safeguarded amount must be at least £5,000; but this is qualified by sub-paragraphs (7) and (8).

(7) The safeguarded amount must be nil if—

(a) HMRC has previously given a deposit-taker a hold notice (“the earlier hold notice”) relating to the same debts as the hold notice mentioned in sub-paragraph (2) (“the new hold notice”), and

(b) within the period of 30 days ending with the day on which the new hold notice is given to the deposit-taker, HMRC has received a notice under paragraph 8 which states that there is a held amount as a result of the earlier hold notice.

(8) HMRC may (in a case not falling within sub-paragraph (7)) determine that an amount less than £5,000 (which may be nil) is to be the safeguarded amount if HMRC considers it appropriate to do so having regard to the value (or aggregate value) in sterling at the relevant time of any amounts which at that time stand to the credit of a qualifying non-sterling account or accounts." (FA(No.2) 2015, Sch 8, para 4)

 

Qualifying non-sterling account

"(9) In sub-paragraph (8) “qualifying non-sterling account” means an account which, but for paragraph 6(6)(b) (account not denominated in sterling), would be a relevant account in relation to the hold notice.

(10) For the purposes of sub-paragraph (8), the value in sterling of any amount is to be determined in the prescribed manner; and regulations for the purposes of this sub-paragraph may specify circumstances in which the exchange rate is to be determined in accordance with a notice published by the Commissioners." (FA(No.2) 2015, Sch 8, para 4)

Relevant time

"(11) In sub-paragraph (8) “the relevant time” means the time when the Commissioners determine the amount to be specified as the “safeguarded amount” under sub-paragraph (2)(c)." (FA(No.2) 2015, Sch 8, para 4)

 

Limit on hold notices on same day to same deposit-taker

"(12) HMRC must not on any one day give to a single deposit-taker more than one hold notice relating to the same debts." (FA(No.2) 2015, Sch 8, para 4)

Step 2: Hold notice

- Effect of hold notice

 

"(1) A deposit-taker to whom a hold notice is given under paragraph 4 must, for each relevant account (see sub-paragraph (6))—

(a) determine whether or not there is a held amount (greater than nil) in relation to that account, and

(b) if there is such a held amount in relation to that account, take the first or second type of action (see sub-paragraph (3)) in respect of that account.

See paragraph 7 for how to determine the held amount in relation to any relevant account." (FA(No.2) 2015, Sch 8, para 6)

 

Relevant account

"(6) In this Part of this Schedule “relevant account”, in relation to a hold notice, means an account held with the deposit-taker by P, but not including—

(a) an account excluded under paragraph 4(3)(b) or by regulations under paragraph 20(2)(c),

(b) an account not denominated in sterling, or

(c) any suspense account." (FA(No.2) 2015, Sch 8, para 6)

Comply within 5 working days

"(2) The deposit-taker must comply with sub-paragraph (1) as soon as is reasonably practicable and, in any event, within the period of 5 working days beginning with the day on which the hold notice is given." (FA(No.2) 2015, Sch 8, para 6)

 

Types of action to be taken

"(3) In relation to each affected account (see sub-paragraph (7))—

(a) the first type of action is to put in place such arrangements as are necessary to ensure that the deposit-taker does not do anything, or permit anything to be done, that would reduce the amount standing to the credit of that account below the held amount in relation to that account;

(b) the second type of action is to—

(i) transfer an amount equal to the held amount from the affected account into an account created by the deposit-taker for the sole purpose of containing that transferred amount (a “suspense account”), and

(ii) put in place such arrangements as are necessary to ensure that the deposit-taker does not do anything, or permit anything to be done, that would reduce the amount standing to the credit of that suspense account below the amount that is the held amount in relation to the affected account." (FA(No.2) 2015, Sch 8, para 6)

 

Affected account

"(7) For the purposes of this Part of this Schedule, a relevant account is an “affected account” if, as a result of the hold notice, an amount is the held amount in relation to that account (see paragraph 7(1) and (2))." (FA(No.2) 2015, Sch 8, para 6)

Duration of action

"(4) The deposit-taker must maintain any arrangements made under subparagraph (3) until the hold notice ceases to be in force." (FA(No.2) 2015, Sch 8, para 6)

 

Cessation

"(5) A hold notice ceases to be in force when—

(a) the deposit-taker is given a notice cancelling it under paragraph 9(1) or 11 or the hold notice is cancelled under paragraph 12, or

(b) the deposit-taker is given a deduction notice in relation to the hold notice (see paragraph 13).(FA(No.2) 2015, Sch 8, para 6)

- Effect of hold notice

- Held amounts

 

One relevant account

"(1) If there is only one relevant account (see paragraph 6(6)) in existence at the time the deposit-taker complies with paragraph 6(1), “the held amount” in relation to that account is—

(a) if the available amount in respect of the account (see sub-paragraph (3)) exceeds the safeguarded amount, so much of the amount of the excess as does not exceed the specified amount, and

(b) if the available amount does not exceed the safeguarded amount, nil.

For the meaning of “the safeguarded amount” and “the specified amount” see paragraph 23(1)." (FA(No.2) 2015, Sch 8, para 7)

More than one relevant account

"(2) If there is more than one relevant account in existence at the time the deposit-taker complies with paragraph 6(1), “the held amount” in relation to each relevant account is determined as follows—

Step 1
Determine the available amount in respect of each relevant account.

Step 2
Determine the total of the available amounts in respect of all of the relevant accounts. If that total does not exceed the safeguarded amount, the held amount in relation to each relevant account is nil (and no further steps are to be taken). In any other case, go to Step 3.

Step 3
Match the safeguarded amount against the available amounts in respect of the relevant accounts, taking those accounts in reverse priority order (see sub-paragraph (6)).

Step 4
Match the specified amount against what remains of the available amounts in respect of the relevant accounts by taking each relevant account in priority order (see sub-paragraph (5)) and matching the specified amount (or, as the case may be, what remains of the specified amount) against the available amount for each account until either—

(a) the specified amount has been fully matched, or

(b) what remains of the available amounts is exhausted.

Where this sub-paragraph applies, “the held amount”, in relation to a relevant account—

(i) is so much of the amount standing to the credit of the account as is matched against the specified amount under Step 4, and

(ii) accordingly, is nil if no amount standing to the credit of the account is so matched against the specified amount." (FA(No.2) 2015, Sch 8, para 7)

 

Available amount

"(3) In this paragraph “the available amount” means—

(a) in the case of an account other than a joint account, the amount standing to the credit of that account at the time the deposit-taker complies with paragraph 6(1), or

(b) in the case of a joint account, the appropriate fraction of the amount standing to the credit of that account at that time;

so, if no amount stands to the credit of an account at that time, “the available amount” is nil." (FA(No.2) 2015, Sch 8, para 7)

Appropriate fraction

"(4) In this paragraph “the appropriate fraction”, in relation to a joint account, means—

1/N

where N is the number of persons who together hold the joint account." (FA(No.2) 2015, Sch 8, para 7)

 

Priority order

"(5) In this paragraph “priority order” means such order as the deposit-taker considers appropriate, but the deposit-taker must ensure—

(a) that accounts other than joint accounts always have a higher priority than joint accounts, and

(b) subject to paragraph (a), that any rule set out in the hold notice under paragraph 4(2)(d) is adhered to.

(6) In this paragraph “reverse priority order” means the reverse of the order determined under sub-paragraph (5)." (FA(No.2) 2015, Sch 8, para 7)

 

Amount standing to the credit

"(7) In this paragraph references to an amount standing to the credit of an account are to be read subject to any regulations under paragraph 20(2)(d)." (FA(No.2) 2015, Sch 8, para 7)

- Held amounts

Step 3: notice of holding

 

(1) This paragraph applies where a deposit-taker receives a hold notice.

(2) If the deposit-taker determines that there are one or more affected accounts (see paragraph 6(7)) as a result of the hold notice, the deposit-taker must give HMRC a notice which sets out—

(a) prescribed information about each of the affected accounts held by P,

(b) the amount of the held amount in relation to each such account,

(c) if any of the affected accounts is a joint account held by P and one or more other persons, prescribed information about the other person or persons, and

(d) any other prescribed information.

(3) The notice under sub-paragraph (2) must be given within the period of 5 working days beginning with the day on which the deposit-taker complies with paragraph 6(1).

(4) If the deposit-taker determines that there are no affected accounts as a result of the hold notice, it must give HMRC a notice which—

(a) states that this is the case, and

(b) sets out any other prescribed information.

(5) The notice under sub-paragraph (4) must be given within the period of 5 working days beginning with the day on which the deposit-taker makes that determination.

(6) If HMRC receives a notice under sub-paragraph (2) it must as soon as reasonably practicable—

(a) give P—

(i) a copy of the hold notice, and

(ii) a notice under sub-paragraph (7), and

(b) in relation to each affected account, give a notice to each person within sub-paragraph (9) explaining that a hold notice has been given in respect of the account, the effect of the hold notice so far as it relates to the account and the effect of paragraphs 10 to 12.

(7) A notice under this sub-paragraph must comply with the following requirements—

(a) the notice must specify the particular relevant sums (see paragraph 2) to which the hold notice relates;

(b) the details given for that purpose must include a statement, to the best of HMRC's knowledge, of the amount of each of those sums (that is, the unpaid amount) at the date of the notice;

(c) the notice must state the total of the amounts stated under paragraph (b) (if more than one), and

(d) the notice must state that the notified sum for the purposes of the hold notice (see paragraph 4(4)) is equal to—

(i) the total amount specified under paragraph (c) or,

(ii) if paragraph (c) is not applicable, the amount specified under paragraph (b) as the amount of the relevant sum to which the hold notice relates.

(8) In this Part of this Schedule “the notified sum”, in relation to a hold notice, means the amount identified as such (or that is to be identified as such) in the notice under sub-paragraph (7).

(9) The persons mentioned in sub-paragraph (6)(b) are—

(a) in the case of a joint account, any holder of the account other than P, and

(b) any person (not falling within paragraph (a)) who is an interested third party in relation to the affected account, in respect of whom prescribed information has been provided under subparagraph (2)(c) or sufficient information has otherwise been given in the notice under sub-paragraph (2) to enable HMRC to give a notice.

(10) After the deposit-taker has complied with paragraph 6(1), the deposit-taker may, in relation to any affected account, give a notice to—

(a) P,

(b) if the account is a joint account, any other holder of the account, and

(c) any person (not falling within paragraph (b)) who is an interested third party in relation to the account,

which states that a hold notice has been received by the deposit-taker in respect of the account and the effect of that notice so far as it relates to that account.

(11) In this Part of this Schedule “interested third party”, in relation to a relevant account, means a person other than P who has a beneficial interest in—

(a) an amount standing to the credit of the account, or

(b) an amount which has been transferred from that account to a suspense account.

(12) But, in relation to a hold notice, an interest which comes into existence after any arrangements under paragraph 6(3) have been put into place is treated as not being a beneficial interest for the purposes of sub-paragraph (11).(FA(No.2) 2015, Sch 8, para 8)

Step 3: notice of holding

Cancellation or variation by HMRC notice

 

"(1) Where a hold notice has been given to a deposit-taker HMRC may, by a notice given to the deposit-taker (a “notice of cancellation or variation”)—

(a) cancel the hold notice,

(b) cancel the effect of the hold notice in relation to one or more accounts, or

(c) cancel the effect of the hold notice in relation to any part of the held amount standing to the credit of a particular account or accounts.

In this sub-paragraph references to the effect of a hold notice are to its effect by virtue of paragraph 6(4).

(2) Where HMRC gives a notice under sub-paragraph (1) it must give a copy of that notice to—

(a) P, and

(b) any other person who HMRC considers is affected by the giving of the notice of cancellation or variation and is—

(i) a person who holds a relevant account of which P is also a holder and in respect of whom prescribed information is provided under paragraph 8(2)(c), or

(ii) an interested third party in relation to a relevant account in respect of whom sufficient information has been given in the notice under paragraph 8(2) to enable HMRC to give a notice.

(3) Where the deposit-taker is given a notice under sub-paragraph (1), it must as soon as reasonably practicable and, in any event, within the period of 5 working days beginning with the day the notice is given—

(a) if the notice is given under sub-paragraph (1)(a), cancel the arrangements made under paragraph 6(3) as a result of the notice, and

(b) if the notice is given under sub-paragraph (1)(b) or (c), make such adjustments to those arrangements as are necessary to give effect to the notice." (FA(No.2) 2015, Sch 8, para 9)

Cancellation or variation by HMRC notice

Step 4: Objections

 

"(1) Where a hold notice is given to a deposit-taker, a person within subparagraph (2) may by a notice given to HMRC (a “notice of objection”) object against the hold notice.

(2) The persons who may object are—

(a) P,

(b) any interested third party in relation to an affected account, and

(c) any person (not falling within paragraph (a) or (b)) who is a holder of an affected account which is a joint account,

but only P may object on the ground in sub-paragraph (3)(a).

(3) An objection may only be made on one or more of the following grounds—

(a) that the debts to which the hold notice relates (see paragraph 8(7)(a)) have been wholly or partly paid,

(b) that at the time when the hold notice was given, either there was no sum that was a relevant sum in relation to P or P did not hold any account with the deposit-taker,

(c) that the hold notice is causing or will cause exceptional hardship to the person making the objection or another person, or

(d) that there is an interested third party in relation to one or more of the affected accounts.

(4) A notice of objection must state the grounds of the objection.

(5) Objections under this paragraph may only be made within the period of 30 days beginning with—

(a) in the case of—

(i) P, or

(ii) a person within sub-paragraph (2)(b) or (c) who has not been given a notice under paragraph 8(6)(b),

the day on which a copy of the hold notice is given to P under paragraph 8(6)(a), and

(b) in the case of a person given a notice under paragraph 8(6)(b), the day on which that notice is given.

(6) Sub-paragraph (5) does not apply if HMRC agree to the notice of objection being given after the end of the period mentioned in that sub-paragraph.

(7) HMRC must agree to a notice of objection being given after the end of that period if the following conditions are met—

(a) the person seeking to make the objection has made a request in writing to HMRC to agree to the notice of objection being given;

(b) HMRC is satisfied that there was reasonable excuse for not giving the notice before the relevant time limit, and

(c) HMRC is satisfied that the person complied with paragraph (a) without unreasonable delay after the reasonable excuse ceased.

(8) If a request of the kind referred to in sub-paragraph (7)(a) is made, HMRC must by a notice inform the person making the request whether or not HMRC agrees to the request.

(9) Nothing in Part 5 of TMA 1970 (appeals and other proceedings) applies to an objection under this paragraph." (FA(No.2) 2015, Sch 8, para 10)

Step 4: Objections

- Consideration of objections

 

"(1) HMRC must consider any objections made under paragraph 10 within 30 working days of being given the notice of objection.

(2) Having considered the objections, HMRC must decide whether—

(a) to cancel the hold notice,

(b) to cancel the effect of the hold notice in relation to the held amount, or any part of the held amount, in respect of a particular account or accounts, or

(c) to dismiss the objection.

(3) HMRC must give a notice stating its decision to—

(a) P,

(b) each person other than P who objected, and

(c) any other person who HMRC considers is affected by the decision and is—

(i) a person who holds a relevant account of which P is also a holder and in respect of whom prescribed information is provided under paragraph 8(2)(c), or

(ii) an interested third party in relation to a relevant account in respect of whom sufficient information has been given in the notice under paragraph 8(2) to enable HMRC to give a notice.

(4) HMRC must, by a notice to the deposit-taker—

(a) if it makes a decision under sub-paragraph (2)(a), cancel the hold notice;

(b) if it makes a decision under sub-paragraph (2)(b), cancel the effect of the hold notice in relation to the accounts or amounts in question.

(5) HMRC must give each person to whom HMRC is required to give a notice under sub-paragraph (3) a copy of any notice given to the deposit-taker under sub-paragraph (4).

(6) Where the deposit-taker is given a notice under sub-paragraph (4), it must as soon as reasonably practicable and, in any event, within the period of 5 working days beginning with the day the notice is given—

(a) if the notice is given under sub-paragraph (4)(a), cancel the arrangements mentioned in paragraph 6(3), or

(b) if the notice is given under sub-paragraph (4)(b), make such adjustments to those arrangements as are necessary to give effect to the notice.

(7) In this paragraph references to the effect of a hold notice are to its effect by virtue of paragraph 6(4)." (FA(No.2) 2015, Sch 8, para 11)

- Consideration of objections

Step 5: Appeal

 

"(1) Where HMRC makes a decision under paragraph (b) or (c) of paragraph 11(2), a person within sub-paragraph (2) may appeal against the hold notice.

(2) The persons who may appeal are—

(a) P,

(b) any interested third party in relation to an affected account, and

(c) any person not falling within paragraph (a) or (b) who is a holder of an affected account which is a joint account.

(3) An appeal may only be made on one or more of the grounds set out in paragraph 10(3) (and for this purpose the reference in paragraph 10(3)(c) to “the objection” is to be read as a reference to the appeal).

(4) An appeal under sub-paragraph (1) must be made—

(a) in England and Wales, to the county court, and

(b) in Northern Ireland, to a county court.

(5) An appeal under this paragraph may only be made within the period of 30 days beginning—

(a) in the case of a person given a notice of HMRC's decision under paragraph 11(3), with the day on which that notice is given to that person, and

(b) in the case of any person within sub-paragraph (2)(b) or (c) to whom such a notice has not been given, the day on which P is given such a notice.

(6) A notice of appeal must state the grounds of appeal.

(7) On an appeal under this paragraph, the court may—

(a) cancel the hold notice,

(b) cancel the effect of the hold notice in relation to the held amount, or any part of the held amount, in respect of a particular account or accounts, or

(c) dismiss the appeal.

(8) Where the deposit-taker is served with an order made by the court under sub-paragraph (7)(a) or (b), the deposit-taker must as soon as reasonably practicable and, in any event, within the period of 5 working days beginning with the day the notice is given take such steps as are necessary to give effect to the order.

(9) Where an appeal on the ground that the hold notice is causing or will cause the person making the appeal or another person exceptional hardship (or a further appeal following such an appeal) is pending, the court to which the appeal is made may, on an application made by the person who made the appeal—

(a) suspend the effect of the hold notice if adequate security is provided in respect of so much of the notified sum as remains unpaid,

(b) suspend the effect of the hold notice in relation to a particular account if adequate security is provided in respect of the held amount in relation to that account, or

(c) suspend the effect of the hold notice in relation to any part of the held amount standing to the credit of a particular account, if adequate security is provided in respect of that part.

(10) In this paragraph references to the effect of a hold notice are to its effect by virtue of paragraph 6(4).

(11) Nothing in Part 5 of TMA 1970 (appeals and other proceedings) applies to an appeal under this paragraph." (FA(No.2) 2015, Sch 8, para 12)

Step 5: Appeal

Step 6: Deduction notice

 

"(1) If it appears to HMRC that a person in respect of whom a hold notice given to a deposit-taker is in force—

(a) has failed to pay a relevant sum, and

(b) holds an account (or more than one account) with the deposit-taker in respect of which there is a held amount in relation to that sum,

HMRC may give the deposit-taker a deduction notice in respect of that person.

(2) A “deduction notice” is a notice which—

(a) specifies the name of the person concerned,

(b) specifies one or more affected accounts held by that person with the deposit-taker, and

(c) in relation to each such specified account requires the deposit-taker to deduct and pay a qualifying amount (see sub-paragraph (6)) to the Commissioners by a day specified in the notice.

(3) Where a deduction notice specifies a particular affected account—

(a) the deduction required to be made in relation to that account by virtue of sub-paragraph (2)(c) must be made from the appropriate account, that is to say—

(i) if the deposit-taker has by virtue of the hold notice transferred an amount from the specified account into a suspense account, that suspense account, or

(ii) otherwise, the specified account, and

(b) the deposit-taker must not during the period in which the deduction notice is in force do anything, or permit anything to be done (except in accordance with paragraph (a)) that would reduce the amount standing to the credit of the appropriate account below the balance required for the purpose of making that deduction.

(4) A deduction notice must explain the effect of sub-paragraph (3)(b) and paragraph 14 (penalties).

(5) A deduction notice may not be given in respect of an account unless—

(a) the period for making an objection under paragraph 10 has expired and either no objections were made or any objection made has been decided or withdrawn, and

(b) if objections were made and decided, the period for appealing under paragraph 12 has expired and any appeal or further appeal has been finally determined.

(6) In this paragraph “qualifying amount”, in relation to an affected account, means an amount not exceeding the held amount in relation to that account (as modified, where applicable, under paragraph 9(3)(b), 11(6)(b) or 12(7)(b)).

(7) The total of the qualifying amounts specified in the deduction notice must not exceed the unpaid amount of the notified sum (see paragraph 8(8)).

(8) HMRC must—

(a) give a copy of the deduction notice to the person in respect of whom it is given, and

(b) in the case of each account in respect of which the notice is given, give a notice to each person within sub-paragraph (9) explaining that a deduction notice has been given in respect of that account and the effect of the deduction notice so far as it relates to that account.

(9) The persons mentioned in sub-paragraph (8)(b) are—

(a) if the account is a joint account, each person other than P who is a holder of the account, and

(b) any person (not falling within paragraph (a))—

(i) who is an interested third party in relation to the account whom HMRC knows will be affected by the deduction notice, and

(ii) about whom HMRC has sufficient information to enable it to give the notice under sub-paragraph (8)(b).

(10) HMRC may, by a notice given to the deposit-taker, amend or cancel the deduction notice, and where it does so it must—

(a) give a copy of the notice under this sub-paragraph to the person in respect of whom the deduction notice was given, and

(b) in the case of each account affected by the amendment or cancellation, give a notice to each person within sub-paragraph (9) explaining the effect of the amendment or cancellation so far as it relates to that account.

(11) The deduction notice—

(a) comes into force at the time it is given to the deposit-taker, and

(b) ceases to be in force at the time—

(i) the deposit-taker is given a notice cancelling it under subparagraph (10), or

(ii) the deposit-taker makes the final payment required by virtue of sub-paragraph (2)(c)." (FA(No.2) 2015, Sch 8, para 13)

Step 6: Deduction notice

Geographical limit: England and Wales

 

"This Part of this Schedule extends to England and Wales and Northern Ireland."  (FA(No.2) 2015, Sch 8, para 24)

Geographical limit: England and Wales

Persons at a particular disadvantage

 

"(1) Before deciding whether or not to exercise the power under paragraph 3(2) or 4(1) in relation to a person, HMRC must consider whether or not, to the best of HMRC's knowledge, there are any matters as a result of which the person is, or may be, at a particular disadvantage in dealing with the person's Revenue and Customs affairs.

(2) If HMRC determines that there are any such matters, HMRC must take those matters into account in deciding whether or not to exercise the power concerned in relation to the person.

(3) The Commissioners must publish guidance as to the factors which are relevant to determining whether or not a person is at a particular disadvantage in dealing with the person's Revenue and Customs affairs for the purposes of this Schedule.

(4) In this paragraph “Revenue and Customs affairs”, in relation to a person by whom a relevant sum is payable, means any affairs of the person which relate to the relevant sum." (FA(No.2) 2015, Sch 8, para 5)

Persons at a particular disadvantage

Penalties

 

"(1) This paragraph applies to a deposit-taker who—

(a) fails to comply with an information notice,

(b) fails to comply with a hold notice or a deduction notice,

(c) fails to comply with an obligation under paragraph 8(2) in accordance with paragraph 8(3) (obligation to notify HMRC of effects of hold notice),

(d) fails to comply with an obligation under paragraph 8(4) in accordance with paragraph 8(5) (obligation to notify HMRC if no affected accounts),

(e) fails to comply with an obligation under paragraph 9(3) (obligation to cancel or modify effects of hold notice),

(f) fails to comply with an obligation under paragraph 11(6) (obligation to cancel or adjust arrangements to give effect to HMRC's decision of objection), or

(g) following receipt of an information notice or hold notice in relation to an account or accounts held with the deposit-taker by a person (“the affected person”), makes a disclosure of information to the affected person or any other person in circumstances where that disclosure is likely to prejudice HMRC's ability to use the provisions of this Part of this Schedule to recover a relevant sum owed by the affected person.

(2) In sub-paragraph (1)(g), the reference to a disclosure of information does not include the giving of a notice in accordance with paragraph 8(10) to the affected person in respect of a hold notice.

(3) The deposit-taker is liable to a penalty of £300.

(4) If a failure within sub-paragraph (1)(a) to (f) continues after the day on which notice is given under paragraph 15(1) of a penalty in respect of the failure, the deposit-taker is liable to a further penalty or penalties not exceeding £60 for each subsequent day on which the failure continues.

(5) A failure by a deposit-taker to do anything required to be done within a limited period of time does not give rise to liability to a penalty under this paragraph if the deposit-taker did it within such further time, if any, as HMRC may have allowed.

(6) Liability to a penalty under this paragraph does not arise if the person satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that there is a reasonable excuse for the failure or (as the case may be) disclosure.

(7) For the purposes of this paragraph—

(a) where the deposit-taker relies on any other person to do anything, that is not a reasonable excuse unless the deposit-taker took reasonable care to avoid the failure or disclosure, and

(b) where the deposit-taker had a reasonable excuse for the failure but the excuse has ceased, the deposit-taker is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased." (FA(No.2) 2015, Sch 8, para 14)

Penalties

Exclusion of liability of deposit takers for damages

 

"A deposit-taker is not liable for damages in respect of anything done in good faith for the purposes of complying with a hold notice or a deduction notice."  (FA(No.2) 2015, Sch 8, para 18)

Exclusion of liability for damages of deposit takers
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