HMRC data-gathering powers
HMRC data-gathering powers

The following Tax practice note provides comprehensive and up to date legal information covering:

  • HMRC data-gathering powers
  • What are the purposes for which HMRC may use its data-gathering powers?
  • Scope of the powers
  • Relevant data and data-holders
  • Notices and compliance
  • Tribunal approval of data-holder notices
  • Appeals
  • Penalties

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for Tax?

HMRC's information powers in Schedule 36 to the Finance Act 2008 (FA 2008) (see Practice Note: HMRC information powers) are supplemented by data-gathering powers in Schedule 23 to the Finance Act 2011 (FA 2011). These data-gathering powers are also known as bulk information powers.

Unlike the FA 2008 information powers, the FA 2011 data-gathering powers are aimed at third parties, known as data-holders, and may not normally be used to investigate the tax positions of the data-holders themselves.

The powers can be used to gather certain types of data from certain categories of persons, known as relevant data-holders. For the most part these are persons, such as employers and banks, who make payments on which the recipients may be required to pay tax, although HMRC has sought to apply the powers more widely to persons holding information that may disclose the existence

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