29 Crime and taxation.U.K.
(1)Personal data processed for any of the following purposes—
(a)the prevention or detection of crime,
(b)the apprehension or prosecution of offenders, or
(c)the assessment or collection of any tax or duty or of any imposition of a similar nature,
are exempt from the first data protection principle (except to the extent to which it requires compliance with the conditions in Schedules 2 and 3) and section 7 in any case to the extent to which the application of those provisions to the data would be likely to prejudice any of the matters mentioned in this subsection.
(2)Personal data which—
(a)are processed for the purpose of discharging statutory functions, and
(b)consist of information obtained for such a purpose from a person who had it in his possession for any of the purposes mentioned in subsection (1),
are exempt from the subject information provisions to the same extent as personal data processed for any of the purposes mentioned in that subsection.
(3)Personal data are exempt from the non-disclosure provisions in any case in which—
(a)the disclosure is for any of the purposes mentioned in subsection (1), and
(b)the application of those provisions in relation to the disclosure would be likely to prejudice any of the matters mentioned in that subsection.
(4)Personal data in respect of which the data controller is a relevant authority and which—
(a)consist of a classification applied to the data subject as part of a system of risk assessment which is operated by that authority for either of the following purposes—
(i)the assessment or collection of any tax or duty or any imposition of a similar nature, or
(ii)the prevention or detection of crime, or apprehension or prosecution of offenders, where the offence concerned involves any unlawful claim for any payment out of, or any unlawful application of, public funds, and
(b)are processed for either of those purposes,
are exempt from section 7 to the extent to which the exemption is required in the interests of the operation of the system.
(5)In subsection (4)— “public funds” includes funds provided by any Community institution; “relevant authority” means—
(a)a government department,
(b)a local authority, or
(c)any other authority administering housing benefit or council tax benefit.