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Procedure.Tax
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A6: Particular types of person
Trustees
Joint treatment and responsibility for the purposes of TMA 1970
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"(1) Subject to the following provisions of this section, anything which for the purposes of this Act is done at any time by or in relation to any one or more of the relevant trustees of a settlement shall be treated for those purposes as done at that time by or in relation to the other or others of those trustees." (TMA 1970, s.107A(1))
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Relevant trustees
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See Chapter B1.
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Joint liability for certain penalties
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"(2) Subject to subsection (3) below, where the relevant trustees of a settlement are liable—
(a) to a penalty under section 12B of this Act or paragraph 2A of Schedule 1A to this Act or Schedule 24 to the Finance Act 2007 or Schedule 41 to the Finance Act 2008 or Schedule 55 to the Finance Act 2009 or Schedule 18 to the Finance Act 2017 or Schedule 22 to the Finance Act 2016, or to interest under section 101 of the Finance Act 2009 on such a penalty;
(b) to make a payment in accordance with an assessment under section 30 of this Act, or to make a payment under section 59A[…11] or 59B of this Act or under Schedule 2 to the Finance Act 2019;
(c) to a penalty under Schedule 56 to the Finance Act 2009, or to interest under section 101 of that Act on such a penalty; or
(d) to interest under section 86 of this Act or section 101 of the Finance Act 2009,
the penalty, interest or payment may be recovered (but only once) from any one or more of those trustees.
(3) No amount may be recovered by virtue of subsection (2)(a) or (c) above from a person who did not become a relevant trustee until after the relevant time, that is to say—
(a) in relation to—
(i) a penalty under paragraph 4 of Schedule 55 to the Finance Act 2009 in respect of a return or other document falling within item 1, 2 or 3 of the Table in paragraph 1 of that Schedule, or
(ii) interest under section 101 of that Act on a penalty within sub-paragraph (i),
the beginning of the penalty date as defined in paragraph 1(4) of that Schedule;
(aa) in relation to a penalty under Schedule 22 to the Finance Act 2016, or to interest under section 101 of the Finance Act 2009 on such a penalty, the time when the relevant act or omission occurred;
(b) in relation to a penalty under any …5 provision of this Act mentioned in subsection (2)(a) above, or to interest under [section 101 of the Finance Act 2009 on such a penalty, the time when the relevant act or omission occurred; and
(c) in relation to—
(i) a penalty under Schedule 56 to the Finance Act 2009 in respect of an amount falling within item 1, 3C, 10 12, 18 or 19 of the Table in paragraph 1 of that Schedule,
(ii) a penalty under that Schedule in respect of an amount falling within item 17, 23 or 24 of that Table so far as the tax falls within item 1, or
(iii) interest under section 101 of that Act on a penalty within sub-paragraph (i) or (ii),
the beginning of the penalty date as defined in paragraph 1(4) of that Schedule;]5
(d) in relation to—
(i) a penalty under Schedule 18 to the Finance Act 2017, or
(ii) interest under section 101 of the Finance Act 2009 on a penalty within sub-paragraph (i),
the end of the RTC period (within the meaning of Schedule 18 to the Finance Act 2017);
and in paragraph (aa) and (b) above “the relevant act or omission” means the act or omission which caused the penalty to become payable." (TMA 1970, s.107A(2) - (3))
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Bodies of persons
" “body of persons” means any body politic, corporate or collegiate, and any company, fraternity, fellowship and society of persons, whether corporate or not corporate," (TMA 1970, s.118(1))
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Income tax charge
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"(1) Every body of persons shall be chargeable to income tax in like manner as any person is chargeable under the Income Tax Acts." (TMA 1970, s.71(1))
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Treasurer etc. has responsibility and right to retain funds
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"(2) Subject to section 108 of this Act, the chamberlain or other officer acting as treasurer, auditor or receiver for the time being of any body of persons chargeable to income tax shall be answerable for doing all such acts as are required to be done under the Income Tax Acts for the purpose of the assessment of the body and for payment of the tax.
(3) Every such officer as aforesaid may from time to time retain, out of any money coming into his hands on behalf of the body, so much thereof as is sufficient to pay the income tax charged upon the body, and shall be indemnified for all such payments made in pursuance of the Income Tax Acts." (TMA 1970, s.71(2) - (3))
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Capital gains tax charge
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"(1) This Part of this Act (except section 76 above) shall apply in relation to capital gains tax as it applies in relation to income tax, and subject to any necessary modifications.
(2) This Part of this Act as applied by this section shall not affect the question of who is the person to whom chargeable gains accrue, or who is chargeable to capital gains tax, so far as that question is relevant for the purposes of any exemption, or of any provision determining the rate at which capital gains tax is chargeable." (TMA 1970, s.77)
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Death and personal representatives
Income tax
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"(1) If a person chargeable to income tax dies, the executor or administrator of the person deceased shall be liable for the tax chargeable on such deceased person, and may deduct any payments made under this section out of the assets and effects of the person deceased.
(2) On neglect or refusal of payment, any person liable under this section may be proceeded against in like manner as any other defaulter." (TMA 1970, s.74)
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Capital gains tax
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"(1) This Part of this Act (except section 76 above) shall apply in relation to capital gains tax as it applies in relation to income tax, and subject to any necessary modifications.
(2) This Part of this Act as applied by this section shall not affect the question of who is the person to whom chargeable gains accrue, or who is chargeable to capital gains tax, so far as that question is relevant for the purposes of any exemption, or of any provision determining the rate at which capital gains tax is chargeable." (TMA 1970, s.77)
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VAT
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HMRC power to require representative to comply with VAT obligations
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"Where any person subject to any requirements under this Part dies or becomes incapacitated and control of his assets passes to another person, being a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting in a representative capacity, that other person shall, if the Commissioners so require and so long as he has such control, comply with these requirements, provided that any requirement to pay VAT shall only apply to that other person to the extent of the assets of the deceased or incapacitated person over which he has control; and save to the extent aforesaid this Part shall apply to such a person, so acting, in the same way as it would have applied to the deceased or incapacitated person had that person not been deceased or incapacitated." (SI 1995/2518, r.30)
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Treat the person carrying on the business as a taxable person
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"(1) If a taxable person dies or becomes bankrupt or incapacitated, the Commissioners may, from the date on which he died or became bankrupt or incapacitated treat as a taxable person any person carrying on that business until some other person is registered in respect of the taxable supplies made or intended to be made by that taxable person in the course or furtherance of his business or the incapacity ceases, as the case may be; and the provisions of the Act and of any Regulations made thereunder shall apply to any person so treated as though he were a registered person.
(2) Any person carrying on such business shall, within 21 days of commencing to do so, inform the Commissioners in writing of that fact and of the date of the death, the date of the bankruptcy order or of the nature of the incapacity and the date on which it began.
(3) In relation to a company which is a taxable person, the references in paragraph (1) above to the taxable person becoming bankrupt or incapacitated shall be construed as references to the company going into liquidation or receivership or entering administration." (SI 1995/2518, r.9)
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Court appointed receiver
Income tax
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"(1) A receiver appointed by any court in the United Kingdom which has the direction and control of any property in respect of which income tax is charged in accordance with the provisions of the Income Tax Acts shall be assessable and chargeable with the tax in like manner and to the like amount as would be assessed and charged if the property were not under the direction and control of the court.
(2) Every such receiver shall be answerable for doing all matters and things required to be done under the Income Tax Acts for the purpose of assessment and payment of income tax." (TMA 1970, s.75)
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Capital gains tax
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"(1) This Part of this Act (except section 76 above) shall apply in relation to capital gains tax as it applies in relation to income tax, and subject to any necessary modifications.
(2) This Part of this Act as applied by this section shall not affect the question of who is the person to whom chargeable gains accrue, or who is chargeable to capital gains tax, so far as that question is relevant for the purposes of any exemption, or of any provision determining the rate at which capital gains tax is chargeable." (TMA 1970, s.77)
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Companies
Must act through proper officer or person with actual, implied or apparent authority
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"(1) Everything to be done by a company under the Taxes Acts shall be done by the company acting through the proper officer of the company or, except where a liquidator has been appointed for the company, through such other person as may for the time being have the express, implied or apparent authority of the company to act on its behalf for the purpose, and service on a company of any document under or in pursuance of the Taxes Acts may be effected by serving it on the proper officer." (TMA 1970, s.108(1))
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Proper officers
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"(3) For the purposes of this section—
(a) the proper officer of a company which is a body corporate shall be the secretary or person acting as secretary of the company, except that if a liquidator or administrator has been appointed for the company the liquidator or, as the case may be, administrator shall be the proper officer,
(b) the proper officer of a company which is not a body corporate or for which there is no proper officer within paragraph (a) above, shall be the treasurer or the person acting as treasurer, of the company." (TMA 1970, s.108(3))
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"(4) For the purposes of subsection (3)(a), where two or more persons are appointed to act jointly or concurrently as the administrator of a company, the proper officer is—
(a) such one of them as is specified in a notice given to the Board by those persons for the purposes of this section, or
(b) where the Board is not so notified, such one or more of those persons as the Board may designate as the proper officer for those purposes." (TMA 1970, s.108(4))
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Partnerships
Joint and several liability of partners to give notice
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"(1) Where any notice is required to be given for the purposes of the Act or these Regulations by a partnership, it shall be the joint and several liability of all the partners to give such notice, provided that a notice given by one partner shall be a sufficient compliance with any such requirement.
(2) Where, in Scotland, a body of persons carrying on a business which includes the making of taxable supplies is a partnership required to be registered, any notice shall be given and signed in the manner indicated in section 6 of the Partnership Act 1890." (SI 1995/2518, r.7)
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Clubs, associations and organisations
Joint and several liability of certain members​
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"Anything required to be done by or under the Act, these regulations or otherwise by or on behalf of a club, association or organisation, the affairs of which are managed by its members or a committee or committees of its members, shall be the joint and several responsibility of—
(a) every member holding office as president, chairman, treasurer, secretary or any similar office; or in default of any thereof,
(b) every member holding office as a member of a committee; or in default of any thereof,
(c) every member,
provided that if it is done by any official, committee member or member referred to above, that shall be sufficient compliance with any such requirement." (SI 1995/2518, r.8)
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Bankruptcy and insolvency
VAT
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HMRC power to require representative to comply with VAT obligations
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"Where any person subject to any requirements under this Part dies or becomes incapacitated and control of his assets passes to another person, being a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting in a representative capacity, that other person shall, if the Commissioners so require and so long as he has such control, comply with these requirements, provided that any requirement to pay VAT shall only apply to that other person to the extent of the assets of the deceased or incapacitated person over which he has control; and save to the extent aforesaid this Part shall apply to such a person, so acting, in the same way as it would have applied to the deceased or incapacitated person had that person not been deceased or incapacitated." (SI 1995/2518, r.30)
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Treat the person carrying on the business as a taxable person
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"(1) If a taxable person dies or becomes bankrupt or incapacitated, the Commissioners may, from the date on which he died or became bankrupt or incapacitated treat as a taxable person any person carrying on that business until some other person is registered in respect of the taxable supplies made or intended to be made by that taxable person in the course or furtherance of his business or the incapacity ceases, as the case may be; and the provisions of the Act and of any Regulations made thereunder shall apply to any person so treated as though he were a registered person.
(2) Any person carrying on such business shall, within 21 days of commencing to do so, inform the Commissioners in writing of that fact and of the date of the death, the date of the bankruptcy order or of the nature of the incapacity and the date on which it began.
(3) In relation to a company which is a taxable person, the references in paragraph (1) above to the taxable person becoming bankrupt or incapacitated shall be construed as references to the company going into liquidation or receivership or entering administration." (SI 1995/2518, r.9)
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Incapacitated persons
VAT
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HMRC power to require representative to comply with VAT obligations
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"Where any person subject to any requirements under this Part dies or becomes incapacitated and control of his assets passes to another person, being a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting in a representative capacity, that other person shall, if the Commissioners so require and so long as he has such control, comply with these requirements, provided that any requirement to pay VAT shall only apply to that other person to the extent of the assets of the deceased or incapacitated person over which he has control; and save to the extent aforesaid this Part shall apply to such a person, so acting, in the same way as it would have applied to the deceased or incapacitated person had that person not been deceased or incapacitated." (SI 1995/2518, r.30)
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Treat the person carrying on the business as a taxable person
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"(1) If a taxable person dies or becomes bankrupt or incapacitated, the Commissioners may, from the date on which he died or became bankrupt or incapacitated treat as a taxable person any person carrying on that business until some other person is registered in respect of the taxable supplies made or intended to be made by that taxable person in the course or furtherance of his business or the incapacity ceases, as the case may be; and the provisions of the Act and of any Regulations made thereunder shall apply to any person so treated as though he were a registered person.
(2) Any person carrying on such business shall, within 21 days of commencing to do so, inform the Commissioners in writing of that fact and of the date of the death, the date of the bankruptcy order or of the nature of the incapacity and the date on which it began.
(3) In relation to a company which is a taxable person, the references in paragraph (1) above to the taxable person becoming bankrupt or incapacitated shall be construed as references to the company going into liquidation or receivership or entering administration." (SI 1995/2518, r.9)
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