The measure

HMRC have issued a Consultation Response Document in relation to bulk and specialist information powers.  This document follows up the HMRC Consultation Document of the same title issued in July 2009.  The deadline for responses was 1 October 2009.  The consultation concerned HMRC's information powers which have not been covered by work to date.  These are bulk information powers used by HMRC to gather specific pieces of information about a group of taxpayers; and specialist unnamed taxpayer powers which are narrowly defined in law to be used only in very specific circumstances, for example where it is not clear who the taxpayer is.

The document summarises the responses to the July Consultation Document.

HMRC will include draft new legislation in a second consultation document to be issued in due course. At present it is expected that the bulk powers will be put into a new schedule modelled on Schedule 36 FA 2008, which deals with information and inspection powers. The new schedule will identify particular groups of data-holders and the information that may be sought from each group. Some of the detail may be in regulations.

The specialist information powers overlap both Schedule 36 (information and inspection powers) and the proposed new Schedule dealing with bulk powers. In many cases specialist powers are used even though no specific taxpayer is in mind so the powers in part serve an information gathering role. It is considered that a few specialist powers that contain very wide information do not belong in the proposed new Schedule.

It is proposed to leave those powers where they are and HMRC will ensure that guidance makes it clear which powers are to be used where there is overlap. Taking time to get the new structure right will allow enable HMRC to have further discussions in the coming months with major data-holders about the scope and use of bulk information powers.

Who will be affected?

The bulk and specialist information powers apply to a miscellaneous group of taxpayers, set out in Annex A to the original consultation document.  Examples include banks and financial institutions.

When?

No timetable for draft legislation is specified, but it would not be surprising to see draft legislation before Budget 2010.