Finance Act 2013

PART 2 U.K. Duty to keep and preserve records

Duty to keep and preserve records U.K.

5 (1) A person who is required to deliver a return for a chargeable period must— U.K.

(a) keep any records that may be needed to enable the person to deliver a correct and complete return, and

(b) preserve those records in accordance with this paragraph.

(2) The records must be preserved until the end of the later of the relevant day and the date on which—

(a) an enquiry into the return is completed, or

(b) if there is no enquiry, an officer of Revenue and Customs no longer has power to enquire into the return.

(3) “The relevant day” means—

(a) the sixth anniversary of the last day of the chargeable period, or

(b) any earlier day that may be specified in writing by the Commissioners for Her Majesty's Revenue and Customs.

(4) Different days may be specified for different purposes under sub-paragraph (3)(b).

(5) The records required to be kept and preserved under this paragraph include—

(a) details of any relevant transaction (including any contract or conveyance and any supporting maps, plans or similar documents and records of relevant payments, receipts and financial arrangements);

(b) records of any valuation of the single-dwelling interest relevant to its value on any day in the chargeable period.

(6) The Commissioners for Her Majesty's Revenue and Customs may by regulations—

(a) provide that the records required to be kept under this paragraph do, or do not, include records specified in the regulations;

(b) specify supporting documents that are required to be kept under this paragraph.

(7) Regulations under this paragraph may make provision by reference to things specified in a notice published by the Commissioners for Her Majesty's Revenue and Customs in accordance with the regulations (and not withdrawn by a subsequent notice).

(8) “Supporting documents” includes accounts, books, deeds, contracts, vouchers and receipts.

Preservation of information etc U.K.

6 U.K. The duty under paragraph 5 to preserve records may be satisfied—

(a) by preserving them in any form and by any means, or

(b) by preserving the information contained in them in any form and by any means, subject to any conditions or exceptions specified in writing by the Commissioners for Her Majesty's Revenue and Customs.

Penalty for failure to keep and preserve records U.K.

7 (1) A person who fails to comply with paragraph 5 in relation to a chargeable period is liable to a penalty not exceeding £3,000, subject to the following exception. U.K.

(2) No penalty is incurred if an officer of Revenue and Customs is satisfied that any facts that it is reasonable to require should be proved to HMRC, and that would have been proved by the records, are proved by other documentary evidence provided to them.