256.This section stipulates how the Commissioners should handle revenues (e.g. taxes and duties) and other monies received in the course of their functions (so this section does not apply to departmental funding). Subsection (1) requires the Commissioners to pay monies received into the Consolidated Fund. Subsection (1)(b), however, introduces a number of exceptions to this rule, which are specified at subsection (2):
national insurance contributions (which are dealt with under the Social Security Administration Act 1992, the Social Security Contributions and Benefits Act 1992, and the Social Security Contributions and Benefits (Northern Ireland) Act 1992, and which are payable to the National Insurance Fund or National Insurance Fund for Northern Ireland);
sums due to be paid into the National Loans Fund (for example, sums received for certificates of tax deposits);
student loan repayments (which are paid to the Secretary of State before disposal into the Consolidated Fund);
penalties in respect of the National Minimum Wage (which are also paid to the Secretary of State before disposal into the Consolidated Fund); and
sums due to the Scottish Consolidated Fund (there are a small number of items that must be paid in to the Scottish Consolidated Fund such as forfeited monies under the Proceeds of Crime Act and fines under SI 2004/953 Scotland Act 1998 (Designation of Receipts Order).
257.Subsection (1)(a) of the section allows the Treasury to issue directions stipulating the detailed arrangements for how and when payments into the Consolidated Fund are to be made. The Commissioners must comply with these directions.
258.Subsection (1)(c) permits the Commissioners to deduct certain sums from revenue receipts before those receipts are paid over to the Consolidated Fund, thus giving parliamentary authority for the making of certain payments out of revenue. Those deductions are specified at subsection (3).
259.The list of permitted deductions at subsection (3) is inclusive, so if a deduction does not fall within the descriptions at this paragraph, it may not be deducted from revenue receipts, but the gross amount must be paid over in some other manner. Paragraph (a) permits deduction of repayments of revenues (such as VAT repayments) and deduction of drawbacks and discounts, such as excise drawbacks, any deduction under the Excise Duties (Surcharges or Rebates) Act 1979, or discounts under regulations made under Schedule 38 paragraphs (1) and (2)(a) Finance Act 2000. Paragraph (b) allows the deduction of amounts due to be paid to the Scottish Consolidated Fund in respect of the Scottish Variable Rate of tax. Paragraph (c) allows the deduction of payments that are required by law to be made to the Isle of Man, allowing the Isle of Man’s share of revenues due under the UK and Isle of Man Revenue Sharing Agreement to be paid out of UK revenue. And paragraph (d) permits the Commissioners to deduct payments of tax credits from revenues received.
260.Subsection (4) defines the “repayments” that fall within the permitted deductions at subsection (3)(a). It ensures that repayments include not only the repayment of the tax or duty itself, but also any interest or repayment supplement that is due to be paid alongside that repayment of tax or duty.