AH1081 - General Commissioners - Jurisdiction: Assignment of proceedings to General Commissioners

TMA70/SCH3 contains the rules for assigning tax proceedings to General Commissioners (see AH1090 for NICs and Statutory payments).

Elections

The taxpayer can elect for the proceedings to be heard by the Commissioners for any one place in accordance with the rules below.

The election must be made in writing to an officer of HMRC and must be made

• at the time when the taxpayer gives notice of appeal, or
• if the proceedings are not an appeal, at the time the taxpayer commences the proceedings, for example when he or she writes asking the Commissioners for a closure notice, or
• within whatever later time limit the Commissioners for HMRC allows.

The election is irrevocable.

General rule for income and capital gains tax proceedings

Unless the proceedings before the General Commissioners are commenced by an officer of Revenue & Customs (AH1095), the taxpayer can elect for the proceedings to be heard by the Commissioners for any one of three places –

• the taxpayer’s place of residence, i.e. his usual residence, in the United Kingdom (if any) at the time the election is made
• the taxpayer’s place of business in the United Kingdom (if any) at the time the election is made, i.e. the place where the trade, profession, vocation or business is carried on, or if it is carried on at more than one place, the head office or the place where it is mainly carried on
• the taxpayer’s place of employment in the United Kingdom (if any) at the time the election is made, i.e. the place where the employee normally spends his/her working day or, if extensive travel is involved, the base from which his/her work is carried on. The taxpayer can elect for the proceedings in question to be heard by the Commissioners for his place of employment even if they relate to matters unconnected with that employment.

If the taxpayer fails to make an election the HMRC may decide which Commissioners will hear the appeal etc. It must be the Commissioners for one of the places above. If you don’t know the taxpayer’s usual place of residence, you may elect for the Commissioners for his/her last known place of residence. Any election made by HMRC must be notified in writing to the taxpayer.

If none of the above are in the United Kingdom the Commissioners for HMRC may give a direction as to which body of Commissioners should hear the appeal (see AH1120).

HMRC may also elect which Commissioners are to hear the proceedings if those proceedings are commenced by an officer of the Revenue & Customs (see AH1095).

PAYE appeals

The PAYE regulations (SI 2003/2682) specify where PAYE appeals are to be heard:-

• an appeal to the General Commissioners by a reservist against a determination under Regulation 126(2) is heard by the Commissioners for the division in which the reservist's place of residence is situated
• appeals against other determinations are heard by the General Commissioners for the division where the determination was made
• other appeals under the PAYE regulations are heard by the General Commissioners for the division where the appellant’s place of employment is situated.

However, the appellant may elect for the appeal to be heard by the Commissioners for any of the three places listed under the general rules for income and capital gains tax proceedings.

Corporation tax etc

If the proceedings relate to

• corporation tax or
• income tax and a company resident in the United Kingdom and within the charge to corporation tax is a party to the proceedings or
• close company loans

then unless the proceedings before the General Commissioners are commenced by an officer of Revenue & Customs (AH1095), the company can elect for the proceedings to be heard by the Commissioners for any one of three places –

• the place where the company carries on its trade or business at the time the election is made
• the place where the head office or principal place of business of the company is situated at the time the election is made
• the place of residence of the company at the time the election is made.

If the company fails to make an election HMRC may decide which Commissioners will hear the appeal etc. It must be the Commissioners for one of the places above. Any election made by HMRC must be notified in writing to the taxpayer.

If none of the above are in the United Kingdom the Commissioners for HMRC may give a direction as to which body of Commissioners should hear the appeal (see AH1120).

HMRC may also elect which Commissioners are to hear the proceedings if those proceedings are commenced by an officer of Revenue & Customs (see AH1095).

Partnerships

If the proceedings relate to a partnership and a partner of that partnership is a party to the proceedings, the proceedings are assigned to the General Commissioners for

• the place where the trade, profession or business of the partnership is carried on, or
• if the trade, profession or business is carried on at more than one place, the place where it is mainly carried on.

Direction by the Commissioners for HMRC

The Commissioners for HMRC may give a direction for determining which body of General Commissioners will hear the appeal etc if there is no place for the hearing as determined by the rules for assigning proceedings to Commissioners or if the place is outside the United Kingdom (AH1120).