Most manufactured payments will be made by financial traders
such as banks and stock exchange members. However, other persons
may also make them. HMRC staff should generally enquire seeking an
explanation in any case where tax computations include deductions
for manufactured payments that are not reflected in the accounts.
In order to supervise the tax treatment of manufactured
payments, the books and records of securities dealers, and from 1
July 1997 any person engaging in transactions in securities, are
subject to inspection by officers of HMRC under the powers granted
by TMA70/S21. Only the Board may exercise the information powers in
Section 21. If it is considered necessary to use these formal
powers, refer to CT and VAT Products and Process (Domestic Finance
Team).
