INTM603840 - Transfer of assets abroad: Information powers: General

Where liability to the income charge or benefits charge is being considered and there is information required, then the issue of a formal Notice to obtain such information may be appropriate. The provisions under which the Notice is to be issued will be dependent on the circumstances of the case.

For example, it may be appropriate to use powers under FA08/Sch36 where, say, the taxpayer has been subject to the income charge in earlier years but the quantum of the charge for the year of review is to be confirmed. However, in other circumstances, a Notice under ITA07/S748 may well be appropriate. But under ITA07/S748 it is only particulars (see INTM603880) that can be requested and not documents.

The provisions at ITA07/S748 have a very wide-ranging scope and the Notice can be served on any person.

It may be that transactions have taken place many years before the chargeable period under review, and there are no time limitations built into the provisions as to how far back a request for particulars can be made but, see INTM603880.

It is also unnecessary for there to be an open enquiry into a taxpayer’s self-assessment return for a Notice under ITA07/S748 to be issued.

However, where the Notice is served on a solicitor or a bank, there may be limitations as to the particulars which they are to provide – INTM604000 and INTM604020 refer.

The provisions under ITA07/S748 should not be used lightly. There needs to be a realistic contention or likelihood of liability under either the income charge or under the benefits charge before a Notice can be considered. Also, there should be a connection to whatever information is to hand. Care must also be applied where information has been provided in confidence.

Most formal Notices under ITA07/S748 are signed by the technical specialist in Personal Tax International, Liverpool. The only other persons authorised to sign Notices are Deputy Directors in Fraud Investigation Service. Therefore, it is good practice to approach the specialist at an early stage when the issue of a Notice seems likely as guidance on drafting can be provided (see INTM604440).

Where Notices of a general nature are required to be sent to an agent (e.g., a firm of accountants or solicitors, or to a bank), asking for names of customers or clients for whom the recipient has acted in connection with unidentified transactions of a specified nature, and for details of such transactions, Notices are issued only by the technical specialist, who will distribute information as appropriate.

Exceptionally, there may be circumstances where it is appropriate, using the settlements legislation, to issue a Notice under ITTOIA05/S647 to a person in the UK who has been a ‘party’ to an overseas settlement. The advantage of using these provisions is that they are aimed directly at a settlor, trustee, protector, etc., and contain no limitations on the information to be provided by solicitors or banks. The trust specialist in the WMBC Assets, Incentives and Reliefs (AIR) team, Edinburgh should be consulted before issuing this notice.