DMBM655140 - Enforcement action: distraint: general considerations: exempt goods (indirect taxes)
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The restrictions detailed at DMBM655130 apply to all distraints by DMOs for both direct and indirect taxes. They are based on a combination of common, case, court and insolvency laws and rules.
In addition, for indirect taxes only, under S1 1997/1431 Regulation 6 (Schedule 1) there is a similar list of ‘GOODS AND CHATTELS NOT SUBJECT TO LEVY’ covering goods located in a dwelling house that are reasonably required for the domestic needs of any person residing in that house, specific to distraint. The Regulation says:-
Exempt goods
“SI 1997/1431 Regulation 6 (Schedule 1)
GOODS AND CHATTELS NOT SUBJECT TO LEVY
1. Any of the following goods and chattels which are located in a dwelling house at which distress is being levied and are reasonably required for the domestic needs of any person residing in that dwelling house
(a) beds and bedding;
(b) household linen;
(c) chairs and settees;
(d) tables;
(e) food;
(f) lights and light fittings;
(g) heating appliances;
(h) curtains;
(i) floor coverings;
(j) furniture, equipment and utensils used for cooking, storing or eating food;
(k) refrigerators;
(l) articles used for cleaning, mending, or pressing clothes;
(m) articles used for cleaning the home;
(n) furniture used for storing;
(i) clothing, bedding or household linen;
(ii) articles used for cleaning the home;
(iii) utensils used for cooking or eating food;
(o) articles used for safety in the home;
(p) toys for the use of any child within the household;
(q) medical aids and medical equipment.
2. Any of the following items which are located in premises used for the purposes of any profession, trade or business;
(a) fire fighting equipment for use on the premises;
(b) medical aids and medical equipment for use on the premises.”
Note: Although ‘tools of trade’ are not referred to in these provisions you should follow the guidance at DMBM655150 when considering levying on them for indirect taxes.