Finance Act 2021

2 U.K. After paragraph 51 insert—

“Disclosure of third party or financial institution notice U.K.

51A (1) This paragraph applies if—

(a) a person (“P”) is given a third party notice or financial institution notice (“the notice”), and

(b) the tribunal has disapplied the requirement in paragraph 4(1) or 4A(7)(a) (as the case may be) to give a copy of the notice to the taxpayer to whom it relates.

(2) The notice may include a requirement that P must not disclose the notice, or anything relating to it, to—

(a) the taxpayer to whom the notice relates, or

(b) any other person, except for a purpose relating to compliance with the notice.

(3) A requirement imposed under sub-paragraph (2) has effect for a period of 12 months beginning with the day on which P is given the notice unless, before the end of that period—

(a) the requirement is withdrawn in accordance with sub-paragraph (4), or

(b) the period is extended in accordance with sub-paragraph (5).

(4) An officer of Revenue and Customs may, by notice in writing to P, withdraw a requirement imposed under sub-paragraph (2).

(5) An officer of Revenue and Customs may—

(a) by notice in writing to P, extend the period for which a requirement imposed under sub-paragraph (2) has effect for a further period of 12 months (beginning with the day after the last day of the previous period), and

(b) do so on one or more occasions.

(6) An officer of Revenue and Customs may act under sub-paragraph (4) or (5) only if—

(a) the officer is an authorised officer of Revenue and Customs, or

(b) an authorised officer of Revenue and Customs has agreed to the withdrawal of the requirement or the extension of the period (as the case may be).

(7) An authorised officer of Revenue and Customs may only extend, or agree to the extension of, a period under sub-paragraph (5) if that officer has reasonable grounds for believing that not doing so might prejudice the assessment or collection of tax.

51B (1) A person who breaches a requirement imposed under paragraph 51A (not to disclose a notice or anything relating to it) is liable to a penalty of £1,000.

(2) If a person becomes liable for a penalty under sub-paragraph (1)—

(a) HMRC may assess the penalty, and

(b) if they do so, they must notify the person.

(3) The assessment must be made within the period of 12 months beginning with the date on which the breach of the requirement first came to the attention of an officer of Revenue and Customs.

(4) Paragraph 41 applies in relation to the sum specified in sub-paragraph (1) above as it applies in relation to the sums mentioned in paragraph 41(1) but as if—

(a) the reference in paragraph 41(2)(a) to this Act were to FA 2021, and

(b) paragraph 41(3) prevented the regulations from applying to any breach committed before the date on which the regulations come into force.

51C (1) A person may appeal a decision of an officer of Revenue and Customs that a penalty is payable by the person under paragraph 51B.

(2) Paragraph 48 (procedure on appeal against penalty) applies in relation to an appeal under this paragraph as it applies in relation to an appeal under paragraph 47(1)(a) but as if the reference to the notification under paragraph 46 were to the notification under paragraph 51B(2)(b).

(3) Paragraph 49 (enforcement of penalty) applies in relation to a penalty under paragraph 51B as it applies in relation to a penalty under paragraph 39 but as if the reference to the notification under paragraph 46 were to the notification under paragraph 51B(2)(b).”