The Recovery of Tax in Summary Proceedings (Financial Limits) Order 1991

Explanatory Note

(This note is not part of the Order)

This Order, which takes effect from 1st September 1991, increases the limits of the amount of tax which is recoverable summarily in magistrates' courts in England, Wales and Northern Ireland from £500 to £1,000. The Order applies where an amount of tax is due and payable under an assessment to income tax, corporation tax or capital gains tax; and where the tax under an assessment to any of those taxes is payable by instalments, and any of those instalments is due and payable.

The increases apply automatically by virtue of the relevant legislative provisions to –

(a) PAYE deductions from emoluments paid to employees made by employers under the Income Tax (Employments)Regulations 1973 (S.I. 1973/334);

(b) deductions from payments to sub-contractors in the construction industry made by contractors under the Income Tax (Sub-Contractors in the Construction Industry) Regulations 1975 (S.I. 1975/1960); and

(c) Class 1 and Class 4 contributions under the Social Security Act 1975(c. 14) and the Social Security (Northern Ireland)Act 1975 (c. 15).