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HMRC have issued a policy paper ‘Amendments to HMRC's civil information powers’ together with responses to their 2018 consultation ‘Amending HMRC’s Civil Information Powers’ and draft legislation which proposes introducing a new Financial Institution Notice (FIN).

In July 2018 a consultation, 'Amending HMRC’s Civil Information Powers' was launched to consider possible improvements to make things easier for HMRC to obtain certain types of information and to charge higher penalties for non-compliance.

This relates to Schedule 36 Finance Act 2008 which gives HMRC the power to make a written request (‘an information notice’) for a taxpayer to provide information or produce a document provided it is ‘reasonably required’ for the purpose of checking the taxpayer's tax position. Under schedule 36 HMRC can also require a third party to provide information or produce a document in relation to a taxpayer.

HMRC have now, two years later, issued their summary of the 29 responses to the consultation, highlighting an overriding view amongst respondents that:

Following the consultation, HMRC have issued a policy paper and draft legislation in Finance Bill 2020-21 which proposes measures, effective from Royal Assent to Finance Bill 2020-21, to:

Comments are invited on the draft legislation by 15 September 2020 to be sent to This email address is being protected from spambots. You need JavaScript enabled to view it.

Links

Schedule 36 information notices
What are HMRC's powers to obtain information about taxpayers?

Schedule 36 Third Party information notices
When can HMRC ask a third party for information about a taxpayer? What are the taxpayer's rights?

External links

Amending HMRC’s Civil Information Powers - summary of responses

Policy paper: Amendments to HMRC's civil information powers

Draft legislation