CH23130 - Information & Inspection Powers: Information notices: Financial Institution Notice: Tax Debt

For the purposes of this guidance, a reference to the tax debt of a person means:

• an amount of tax that is due from the person, or
• any other amount due from the person in connection with any tax covered under schedule 36. A full list of these taxes can be found at CH21540.

It does not matter whether another person is, or has been, at any time liable to pay the tax or other amount. This may be in the case of insolvency or where a partner in an LLP is removed so that liability for a debt was with one person but might now rest with another.

This is intended to prevent previous liability by another person being a barrier to collection of the debt.

Where you intend to use the Direct Recovery of Debt provisions in Schedule 8 of the Finance (no.2) Act 2015 to take money out of a taxpayer’s bank account, an information notice should be issued under those powers rather than using a FIN (see CH23120). You would in any case need to issue a notice under Schedule 8 under the formal DRD process. A notice under Schedule 36 cannot be used instead of a notice under Schedule 8.