A6.612A Financial institution information notices
HMRC has various powers to obtain information and documents from various persons for the purposes of checking a taxpayer's 'tax position' or collecting a 'tax debt' of the taxpayer1.
These powers are summarised in A6.610, which also includes the definition of 'tax position' and 'tax debt'.
This article discusses financial institution notices, which are also known as FIN or financial institution information notices and were subject to consultation in 2018 prior to be being introduced in 2021.
Financial institution notices—overview
An HMRC officer may issue a written information notice (a 'financial institution notice') requiring a 'financial institution' to provide such information or documents as the officer 'reasonably requires' (see A6.610) for the purpose of checking a taxpayer's tax position or collecting a tax debt of the taxpayer2. Note that HMRC should always issue a formal notice under these powers; it should not ask for information/documents to be provided by the financial institution via an informal request3.
Although this power was introduced by FA 2021, s 126 and so HMRC has been able to issue financial institution notices since 10 June 2021, notices can be issued in respect of checking a taxpayer's tax position or collecting a taxpayer's tax debt whenever these arose4.
Prior to the introduction of these notices, HMRC was able to obtain information and documents from financial institutions using third party information notices. See A6.612. However those notices cannot be issued unless approved by either the taxpayer or the Tribunal. Financial institution notices can be issued without such