224Restriction on powers to postpone tax payments pending initial appealU.K.
(1)In section 55 of TMA 1970 (recovery of tax not postponed), after subsection (8A) insert—
“(8B)Subsections (8C) and (8D) apply where a person has been given an accelerated payment notice or partner payment notice under Chapter 3 of Part 4 of the Finance Act 2014 and that notice has not been withdrawn.
(8C)Nothing in this section enables the postponement of the payment of (as the case may be)—
(a)the understated tax to which the payment specified in the notice under section 220(2)(b) of that Act relates,
(b)the disputed tax specified in the notice under section 221(2)(b) of that Act, or
(c)the understated partner tax to which the payment specified in the notice under paragraph 4(1)(b) of Schedule 32 to that Act relates.
(8D)Accordingly, if the payment of an amount of tax within subsection (8C)(b) is postponed by virtue of this section immediately before the accelerated payment notice is given, it ceases to be so postponed with effect from the time that notice is given, and the tax is due and payable—
(a)if no representations were made under section 222 of that Act in respect of the notice, on or before the last day of the period of 90 days beginning with the day the notice or partner payment notice is given, and
(b)if representations were so made, on or before whichever is later of—
(i)the last day of the 90 day period mentioned in paragraph (a), and
(ii)the last day of the period of 30 days beginning with the day on which HMRC's determination in respect of those representations is notified under section 222 of that Act.”
(2)In section 242 of IHTA 1984 (recovery of tax), after subsection (3) insert—
“(4)Where a person has been given an accelerated payment notice under Chapter 3 of Part 4 of the Finance Act 2014 and that notice has not been withdrawn, nothing in this section prevents legal proceedings being taken for the recovery of (as the case may be)—
(a)the understated tax to which the payment specified in the notice under section 220(2)(b) of that Act relates, or
(b)the disputed tax specified in the notice under section 221(2)(b) of that Act.”
(3)In Schedule 10 to FA 2003 (SDLT: returns, enquiries, assessments and appeals), in paragraph 39 (direction by the tribunal to postpone payment), after sub-paragraph (8) insert—
“(9)Sub-paragraphs (10) and (11) apply where a person has been given an accelerated payment notice under Chapter 3 of Part 4 of the Finance Act 2014 and that notice has not been withdrawn.
(10)Nothing in this paragraph enables the postponement of the payment of (as the case may be)—
(a)the understated tax to which the payment specified in the notice under section 220(2)(b) of that Act relates, or
(b)the disputed tax specified in the notice under section 221(2)(b) of that Act.
(11)Accordingly, if the payment of an amount of tax within sub-paragraph (10)(b) is postponed by virtue of this paragraph immediately before the accelerated payment notice is given, it ceases to be so postponed with effect from the time that notice is given, and the tax is due and payable—
(a)if no representations were made under section 222 of that Act in respect of the notice, on or before the last day of the period of 90 days beginning with the day the notice is given, and
(b)if representations were so made, on or before whichever is later of—
(i)the last day of the 90 day period mentioned in paragraph (a), and
(ii)the last day of the period of 30 days beginning with the day on which HMRC's determination in respect of those representations is notified under section 222 of that Act.”
(4)In paragraph 40 of that Schedule (agreement to postpone payment of tax), after sub-paragraph (3) insert—
“(4)Sub-paragraphs (9) to (11) of paragraph 39 apply for the purposes of this paragraph as they apply for the purposes of paragraph 39.”
(5)In Schedule 33 to FA 2013 (annual tax on enveloped dwellings: returns, enquiries, assessments and appeals), in paragraph 48 (application for payment of tax to be postponed), after sub-paragraph (8) insert—
“(8A)Sub-paragraphs (8B) and (8C) apply where a person has been given an accelerated payment notice under Chapter 3 of Part 4 of FA 2014 and that notice has not been withdrawn.
(8B)Nothing in this paragraph enables the postponement of the payment of (as the case may be)—
(a)the understated tax to which the payment specified in the notice under section 220(2)(b) of that Act relates, or
(b)the disputed tax specified in the notice under section 221(2)(b) of that Act.
(8C)Accordingly, if the payment of an amount of tax within sub-paragraph (8B)(b) is postponed by virtue of this paragraph immediately before the accelerated payment notice is given, it ceases to be so postponed with effect from the time that notice is given, and the tax is due and payable—
(a)if no representations were made under section 222 of that Act in respect of the notice, on or before the last day of the period of 90 days beginning with the day the notice is given, and
(b)if representations were so made, on or before whichever is later of—
(i)the last day of the 90 day period mentioned in paragraph (a), and
(ii)the last day of the period of 30 days beginning with the day on which HMRC's determination in respect of those representations is notified under section 222 of that Act.”
(6)In paragraph 49 of that Schedule (agreement to postpone payment of tax), after sub-paragraph (3) insert—
“(4)Sub-paragraphs (8A) to (8C) of paragraph 48 apply for the purposes of this paragraph as they apply for the purposes of paragraph 48.”