CH23120 - Information & Inspection Powers: Information notices: Financial Institution Notice: When a FIN can be issued

If the material sought consists only of bank statements for an account to which the taxpayer is signatory, then (unless this is a case where HMRC seeks Tribunal authority not to advise the taxpayer of the application - CH23140) the taxpayer should be asked to obtain the statements themselves. If the taxpayer does not agree to this or you have reason to suspect that they may distort the statements, then you should consider issuing a FIN.

You must always obtain the agreement of an authorised officer before a FIN can be issued. The authorised officer must be satisfied that, where appropriate, reasonable steps have been taken to obtain this information from the taxpayer.

If the material sought is not solely bank statements or relates to an account for which the taxpayer is not a signatory, then providing that the statements are reasonably required, you may have to issue a FIN or third party notice in order to obtain the information and documents. When you request bank statements, it is helpful to the Financial Institution if you can provide full details of the bank accounts (name, account number and sort code if you have them). See CH232500 for further details.

If you decide that you need to issue a FIN to obtain the information and documents, you must always have the approval of an authorised officer.

The information or documents requested must be reasonably required and must not be onerous for the financial institution to provide. They should be

  • For the purpose of checking the tax position of a known taxpayer, or
  • For the purpose of collecting a tax debt from a known taxpayer (CH23130).

The FIN for the purpose of collecting a tax debt can be used, for example, to establish whether there are funds available to pay a debt or to find the existing address of the taxpayer. Separate information powers are available in the Direct Recovery of Debt. To avoid duplication of effort, you should use the DRD information powers if there is any possibility that you might subsequently seek to recover the debt under those provisions.

You must also give the taxpayer a summary of reasons letter explaining why you require the information and documents. This should be done when the notice is issued to the financial institution.

Unless it is a case where HMRC seeks Tribunal approval to disapply the usual requirements (CH23660), you must give a copy of the FIN to the taxpayer to whom it relates.

Circumstances when you may decide to issue a FIN could be where:

  • The information and the documents requested are in your reasonable opinion of a kind that would not be onerous for the institution to provide or produce.
  • You consider that the information or documents are reasonably required for the purpose of checking the tax position or for the purpose of collecting a tax debt of the taxpayer.

If you have any concerns whether you can issue a FIN in the context of your case, you should discuss these concerns with an authorised officer.

FA08/SCH36