Finance Act, 1976

Appeals against assessments and payments on account.

30.—(1) In this section—

“assessment to tax” means an assessment to tax made on or after the passing of this Act;

“determination of the appeal” has the same meaning as in section 550 (2A) (c) of the Income Tax Act, 1967 ;

“the specified amount of tax” means, in a case where notice of appeal against an assessment to tax has been given—

(a) the amount of tax specified in the notice in accordance with the provisions of subsection (2), or

(b) where no amount of tax is so specified, or where the amount of tax specified exceeds the tax assessed, the tax assessed;

“tax” means income tax, sur-tax, corporation profits tax, corporation tax or capital gains tax, as may be appropriate;

“the tax assessed” means the amount of tax charged by the assessment or, in a case where the tax is payable in two instalments, the amount of each instalment.

(2) Whenever an appeal is made against an assessment to tax, the appellant shall, in the notice of appeal, specify—

(a) the grounds of the appeal, and

(b) the amount of tax in the assessment or, where the tax is payable in two instalments, the amount of each instalment, which, in his opinion, is likely to become payable on or after the determination of the appeal,

but this subsection shall not preclude the Appeal Commissioners from allowing the appellant, on the hearing of the appeal, to go into any ground of appeal which was not specified in the notice of appeal and the omission of which from such notice was, in the opinion of the Appeal Commissioners, not wilful or unreasonable.

(3) In any case where notice of appeal has been given against an assessment to tax—

(a) the specified amount of tax shall, notwithstanding the appeal, be collected, paid and carry interest in all respects as if it were tax charged by an assessment in respect of which no appeal was pending and section 550 (other than subsection (2A)) of the Income Tax Act, 1967 , shall apply accordingly, and

(b) on the determination of the appeal, any balance of tax chargeable in accordance with the determination shall be payable, or any tax overpaid shall be repaid.

(4) Where an overpayment of tax is to be repaid under subsection (3), the overpayment shall carry interest at the rate or rates in force by virtue of section 550 (1) of the Income Tax Act, 1967 , for the period from the date or dates of the payment of the amount or amounts giving rise to the overpayment, as the case may require, to the date on which the repayment is made:

Provided that—

(a) interest shall not be payable under this subsection if it amounts to less than £1, and

(b) income tax shall not be deductible on payment of interest under this subsection and such interest shall not be reckoned in computing income for the purposes of the Tax Acts.

(5) Where the specified amount of tax is paid not later than two months from the date on which it becomes due and payable and that amount is not less than the lesser of the two following amounts—

(a) the tax assessed, and

(b) 80 per cent. of the amount of tax found to be chargeable by the assessment on the determination of the appeal,

interest shall not be payable on any balance of tax if such balance is paid within two months from the date of the determination:

Provided that in a case where the tax found to be chargeable by the assessment is payable in two instalments, this subsection shall apply in relation to each specified amount of tax as if the reference to the amount of tax found to be chargeable by the assessment on the determination of the appeal, were a reference to the amount of the said tax which is payable in the relevant instalment.

(6) Where—

(a) the amount of tax referred to in subsection (5) (b) falls to be computed and the income in respect of which the tax is chargeable consists of or includes income from any source or sources which is to be computed on the basis of the actual amounts receivable in the year of assessment, or where any deductions allowable on account of any annual sums paid out of profits or gains of a person are to be allowed as deductions in respect of the year in which they are payable, and

(b) the appeal is made before the end of the year of assessment to which the assessment relates,

the said amount shall, if the person assessed so elects at the time of determination of the appeal, be computed as if—

(i) the amount of the income from each of the said sources were equivalent to the amount of the income received from that source in the year immediately preceding the year of assessment, and

(ii) the amount of deductions so allowable were an amount equivalent to the amount of those deductions in the year immediately preceding the year of assessment.

(7) Section 416 (1) of the Income Tax Act, 1967 , shall have effect as if for “twenty-one days” there were substituted “thirty days”.

(8) Sections 417 and 419 of the Income Tax Act, 1967 , shall not apply to any assessment to tax.