COP10 - HMRC Code of Practice 10 - information and advice
Introduction
This Code of Practice tells you about the different ways that HM Revenue and Customs (HMRC) will give you information or advice. We aim to help you to understand your rights and obligations so that you can get your tax affairs right and pay your tax on time.
This code of practice is relevant to all customers although separate processes are available for business customers seeking non-statutory clearances – guidance for business customers seeking non statutory clearances is available.
In this Code of Practice we set out the different ways that we can help you by
- providing general advice
- publishing a variety of information
- providing information under the Freedom of Information and Data Protection Acts
- giving 'post-transaction rulings'
- checking valuations of assets disposed of by individuals
- providing our interpretation of tax law in some circumstances
- giving statutory clearances and approvals for certain types of transactions
Some of the ways that we give information and advice will only be relevant to taxpayers with complex affairs. But we aim to be as helpful as we can to all taxpayers whether their tax affairs are simple or complex.
General advice
You can discuss your tax affairs or get tax information at any HMRC office or at one of the many Enquiry Centres located around the country. We will answer your questions on your rights and obligations on all taxation matters, and give information to help you with returns, claims to reliefs, repayments and appeals.
If you prefer to phone us, you will find a name and phone number on all correspondence from us, or you can find our phone number, and address in The Phone Book under HM Revenue & Customs.
If you need help on Self Assessment (SA), contact your local HMRC office or contact the Self Assessment Helpline.
We publish a wide range of leaflets that explain different aspects of the tax system. See the section under 'Published information'.
Published information
As well as detailed notes on the completion of tax returns, we publish tax information in the following ways:
Explanatory leaflets
We produce a wide range of leaflets, booklets and helpsheets designed to explain different aspects of the tax system in plain English, and to assist with completing tax returns.
Our Catalogue of leaflets and factsheets (PDF 99K) gives further information about our publications, most of which you can get from any HMRC office or Enquiry Centre. Addresses are in The Phone Book under HM Revenue & Customs. Most offices are open to the public from 8.30 am to 4.30 pm, Monday to Friday, and some are also open outside these hours. Your local library or Citizens' Advice Bureau may also have copies of our leaflets. Many leaflets are also available at Online Forms and Publications.
If you need one of the leaflets mentioned in the SA tax return guide you can contact the Self Assessment Orderline. As well as leaflets, the Orderline can supply supplementary pages to the SA return, helpsheets and other forms mentioned in the SA tax return guide.
In addition, The Red Box - a resource for teachers is a free interactive package aimed at teaching school children about tax and public spending. The pack consists of a workbook with full teacher’s notes, case studies and specially designed worksheets for students ages 11-16. To order a pack Tel 0207 401 4070.
Statements of Practice
Statements of Practice are published from time to time to explain our interpretation of legislation and the way we apply the law in practice. Our current statements of practice are available on our website.
Extra-statutory concessions
We also publish extra-statutory concessions. These are relaxations that give a reduction in tax liability that you would not be entitled to under the strict letter of the law.
News releases
We issue news releases to announce a proposed change in the law, a change in our practice or some other change or initiative of interest to the public. You can obtain copies of our news releases free from the HMRC Information Centre. Or you can make an annual subscription so that you automatically receive news releases when they are issued. Details are available from Tolley Publishing (Customer Services) Tel 0208 686 9141.
Revenue & Customs Briefs
Revenue & Customs Briefs replaces Business Briefs and Tax Bulletins and will include announcements advising of policy changes resulting from legislation, litigation or internal policy reviews and notification of some consultation exercises. Revenue & Customs Brief will use a technology called Really Simple Syndication (RSS); this facility enables you to have the latest news and new web content delivered directly to your email box. To find out more about RSS and how to get started please go to manuals in the Practitioners Zone.
Guidance manuals
We publish the internal guidance manuals our staff use. These manuals cover the interpretation of tax law and the operation of the tax system. From the manuals, taxpayers and their professional advisers may gain a better understanding of how we determine tax liabilities and collect tax due. The published manuals omit some material which is covered by the exemptions in the Government's 'Code of Practice on Access to Government Information'. The manuals are available for reference in HMRC Enquiry Centres or can be bought from Tolley Publishing (Customer Services) Tel 2080 686 9141 in either loose leaf form or on CD-Rom.
Your right to information we hold
Freedom of Information Act 2000 (FOI) and the Data Protection Act 1998 (DPA) give you a right to access information that we hold.
Freedom of Information (FoI) Act
Under FoI, you have a right to be told whether we hold information and, if we do, have it communicated to you. Both of these rights may be subject to fees, exemptions or other restrictions in the Act. When we decide we cannot supply information we must give you the reasons for our decision.
Exempted information
Information that we hold in relation to our functions, which identifies or could identify one of our customers including for example an individual, company or other entity, is exempt under FoI. So we will not provide you with information about your or any other person’s dealings with us under FoI, although we may provide it to you on a discretionary basis. You may have a right to a copy of your personal data under the terms of the Data Protection Act (DPA).
We will aim to provide you with other information which does not relate to an identifiable customer unless we wish to apply one of a number of other exemptions allowed by the Act; for example: if disclosure would contravene the DPA; or the information is legally protected; or has been provided to us in confidence; or would damage a trade secret; or would jeopardize the prevention or detection of crime; or would.
We are not obliged to provide you with information which is already in the public domain or that we intend to publish later.
DPA
The DPA is based on eight principles. We will comply with the requirements of those Principles. The Act confers obligations on Data Controllers, of which HMRC is one, to ensure that the personal data held about you is accurate, up to date, not excessive or held for longer than necessary. It must be given and adequate level of security protection and not used for purposes or released to third parties without the legal right to do so. We will adhere to these requirements, correcting any errors when brought to our attention.
The Act also confers rights on living individuals, who are termed data subjects under the Act. These include the rights to have data held about you obtained fairly and lawfully and we will not breach this right by exceeding our powers to collect data. We will tell you how the data we hold is to be used. You have the right to have a copy of your personal data provided to you in a permanent and intelligible form. We will strive to provide an explanation of any terms that you may not understand.
The Act allows certain exemptions to the release of data, including the right to withhold any data which may affect the assessment or collection of tax, the prevention or detection of crime or the apprehension or prosecution of offenders. We will only apply these exemptions where necessary.
If you are not happy with our compliance with the Act we will independently review any decision made. We will offer help and guidance in settling any dispute and provide details of the appeals procedure, including how to contact the Information Commissioner to request assessment of our compliance with the Act.
Information Commissioner
You can complain against our decision by applying to the Information Commissioner, who may set it aside, or confirm it.
Post-transaction rulings
This section is for non-business customers only. Guidance for business customers on how to apply for non-statutory clearances is available here.
A post-transaction ruling is a ruling by HMRC on the application of tax law to a specific transaction after that transaction has taken place. Our aim in giving rulings is to help you to complete your return and know how much tax you are due to pay. You can ask for a ruling that covers Income Tax, Capital Gains Tax, Corporation Tax or Petroleum Revenue Tax, but not Inheritance Tax or Stamp Duty which are outside the scheme. The principles of where we will be bound by any information or advice provided by HMRC is set out in 'When you can rely on information or advice provided by HM Revenue & Customs (HMRC)'.
Post-transaction rulings are not intended to replace the general advice you can ask for as described earlier in this Code of Practice. You cannot ask for a post-transaction ruling unless the tax treatment of the particular transaction is in doubt, for example, if it was an unusual transaction or one you entered into in unusual circumstances. If you do apply for a post-transaction ruling then it may involve you as well as us in a lot of work. You can apply for a post-transaction ruling whether or not you have a professional adviser.
We will not give a post-transaction ruling in the particular circumstances
or in respect of the particular issues which are set out in Appendix 2.
As well as these exclusions, we will not give a post-transaction ruling
where, in our view, we could not resolve the issue before the filing date
for the relevant return without an unreasonable diversion of our resources.
When and how should you ask for a post-transaction ruling?
You can apply for a post-transaction ruling at any time after you have completed the transaction in question. If we have sent you a tax return there are different dates by which you must apply for a post-transaction ruling.
- if we have sent you a Self Assessment tax return you can ask for a post- transaction ruling before or after you have filed your return
- if the return we have sent is not a SA return (for example a Corporation Tax return for periods ending before 1 July 1999) you cannot apply for a post-transaction ruling after you have filed your return.
After a SA return is filed, we will only give a ruling up to the date that we can no longer enquire into that return. And we will not give a post-transaction ruling that you apply for after a SA return is filed if the issue is unlikely to be resolved quickly.
An application for a post-transaction ruling should be made to the HMRC
office that deals with your tax affairs. Your application must set out
all relevant facts. We will not consider ourselves to be bound by a post-transaction
ruling if the application or supporting information was incorrect or incomplete.
Your application for a ruling should include the information set out in
Appendix 1. If you are uncertain about
what to include in your application for a post-transaction ruling, contact
your HMRC office.
The extent to which we are bound by a post-transaction ruling
The principles of where we will be bound by any information or advice provided by HMRC is set out in 'When you can rely on information or advice provided by HM Revenue & Customs (HMRC)'.
The effect of a post-transaction ruling on interest and penalties
If you have applied for a post-transaction ruling, but not received it by the time that your return is due to be submitted, then your return must still be sent in before the time limit. If that happens you should complete your return according to your own view of the correct tax treatment of the particular transaction. If you have filed a SA return you can amend it after we have given the ruling, if you wish, subject to the normal time limits.
If you disagree with the post-transaction ruling that we gave you and complete your return in accordance with your own view of the proper tax treatment, then it may turn out that you have not paid enough tax at the right time. Any unpaid tax would carry interest from the due date regardless of whether you had applied for a post-transaction ruling or whether we had given a ruling by the due date. In the same way, any tax overpaid would carry repayment interest from the date it was paid.
If your return was incorrect because of your fraudulent or negligent
conduct, then penalties will be chargeable in the normal way even if a
post-transaction ruling had been sought for the incorrect item.
Post-transaction valuation checks for capital gains tax
This service is available to individuals who need to value assets to work out their capital gains tax liability. For more information on this service see An Introduction to Capital Gains Tax.
Information and guidance on our interpretation of tax law
If you are uncertain about HMRC interpretation of the law (including its application to a proposed transaction) we will advise you if your query is in the following categories
- the interpretation of legislation passed in the last four Finance Acts
- the application of double taxation agreements
- whether someone is employed or self employed
- Statements of Practice and extra-statutory concessions
- other areas concerning matters of major public interest in an industry or in the financial sector.
However, we will not help with tax planning, or advise on transactions
designed to avoid or reduce the tax charge which might otherwise be expected
to arise. And your query must arise from genuine uncertainty about the
meaning of the law.
How should you ask for information and guidance on our interpretation of the law?
You should normally make your request in writing to the HMRC office dealing with your affairs. If you know that our Head Office has been considering the matter, you should say so - or write to Head Office direct. If your request relates to a specific transaction, see the next section. If your query is whether someone is employed or self employed, each HMRC office has a nominated status officer who deals with any enquiries and requests for decisions concerning employment status.
If your question concerns a specialist area of taxation that is not dealt with in local HMRC offices, such as Petroleum Revenue Tax, you should send it to the appropriate specialist HMRC office. Details (including addresses) of these are given in Appendix 3.
Advice on the application of the law to a specific transaction
This section is for non-business customers only. Guidance for business customers on how to apply for non statutory clearances is available.
Your local HMRC office can usually provide a leaflet or general information about the transaction you have in mind. This may be sufficient for your purposes. On the other hand, you may want more specific guidance on how the transaction would be taxed.
If you are seeking guidance on the application of the law to a specific proposed transaction that falls within the categories at the beginning of this section, your query should be sent to the HMRC office that deals with your affairs (or Head Office in appropriate cases). Your request should give the information described in Appendix 1; this is essential and enables you to rely on the advice we give, if the proposed transactions are carried out exactly as described.
The extent to which advice on a proposed transaction is binding on us
The principles of where we will be bound by any information or advice provided by HMRC is set out in 'When you can rely on information or advice provided by HM Revenue and Customs (HMRC)'.
Time limit for replies
Where you have asked for a post-transaction ruling or information and guidance on our interpretation of tax law, we will aim to provide a substantive reply within 28 days. However, where difficult or complicated issues are involved, it may not be possible for us to respond fully in that time. If this is the case, we will acknowledge your letter and tell you when you can expect a reply.
Statutory clearances
In some circumstances the law entitles you to apply for advance rulings about the tax effect of certain transactions. Details of these, including the address where applications for the clearance should be sent, are given in Appendix 4.
Statutory approvals
In some circumstances we also grant statutory approval to contractual or other arrangements. Details of these are given in Appendix 5.
Complaints
If you have a complaint about the information or advice that we have given, or about our refusal to give the information or advice that you have requested, please write to the Officer in Charge of your Tax Office. If you are not satisfied with their response, ask for factsheet C/FS Complaints and putting things right (PDF 264K), which tells you how you can take your complaint further.
Appendix 1
Information to be supplied
- when you apply for a post-transaction ruling
- when you ask for information and guidance on our interpretation of tax law
Your request should begin with a simple explanation of your problem.
You should also include a description of the economic and commercial background to the particular transaction where it will help us to understand it. If you have identified more than one possible way to treat the transaction for tax purposes, you should explain the practical consequences of each. Your request should then go on to give a technical analysis that is sufficiently detailed for us to fully understand the facts and problem that you wish us to consider.
The following information must be included with your request:
- your name and tax reference number
- full particulars of the transaction or event in question
- copies of all relevant documents with the relevant parts or passages identified
- your opinion of the tax consequences of the particular transaction
- your explanation of the particular point(s) of difficulty that led to your request
- details of what sections of the Taxes Acts you consider to be relevant
- particulars of any case law, HMRC extra-statutory concessions or Statements of Practice you consider to be relevant
- your reasons for your opinion of the tax consequences of the transaction
If you are applying for a post-transaction ruling we will interpret the last three categories flexibly in the light of your circumstances and the ruling you have applied for.
In addition to the above you must give the following information
If you are asking for a post-transaction ruling
- the date that the transaction in question took place
- details of the particular aspect(s) of the transaction that you want a ruling on
- your statement that, to the best of your knowledge and belief, the facts you have given are correct and all relevant facts have been disclosed.
If you are asking for information and guidance on our interpretation of tax law
- full details, including tax reference numbers, of any other parties involved
- make it clear that you are seeking considered guidance and say how you intend to use the advice, for example by publishing it.
Appendix 2
Circumstances when we will not give a post-transaction ruling and issues we will not rule on
- on asset valuations or other issues that do not involve the interpretation of tax law or its application to particular circumstances; (if you need the value of an asset checked so you can calculate your capital gains tax then you should ask your Tax Office for form CG34)
- in response to vexatious or frivolous applications
- in response to applications that do not involve genuine points of doubt or difficulty to you or (if you have one) your professional adviser
- in respect of transactions which, in our view, may have been undertaken with the purpose of avoiding tax
- in respect of the application of S703 ICTA 1988 (which has its own facility for post-transaction rulings)
- in relation to the tax consequences of executing non-charitable trust deeds or settlements, and whether Part XV ICTA 1988 applies
- after an enquiry into your Self Assessment is opened or after the time limit has passed for an officer of the Board to notify you of his or her intention to begin an enquiry
- where the period in question is the subject of any other enquiry by the Revenue.
Appendix 3
Specialist areas of taxation dealt with away from Tax Offices
Phone the Probate & Inheritance Tax Helpline on Tel 0845 302 0900 ( + 44 115 974 3009 if calling from overseas). Lines open 9.00 am to 5.00 pm, or write to
England and Wales
HMRC Inheritance Tax
Ferrers House
PO Box 38
Castle Meadow Road
Nottingham
NG2 1BB
Scotland
HMRC Inheritance Tax
Meldrum House
15 Drumsheugh Gardens
Edinburgh
EH3 7UG
Northern Ireland
HMRC Inheritance Tax
Level 3 Dorchester House
52-28 Great Victoria Street
Belfast
BT2 7QL
For enquiries about non resident trusts, domicile and residence
HMRC residency
St John’s House
Merton Road
Bootle
Merseyside
L69 9BB
Tel 0845 070 0040 (or + 44 151 210 2222 if calling from overseas). Lines open 7.30 am to 5.00 pm Monday to Friday (closed bank holidays).
For enquiries about the tax rules applying to charities and Community Amateur Sports Clubs
HMRC charities
St John’s House
Merton Road
Bootle
Merseyside
L69 9BB
Phone Charities Helpline on Tel 0845 302 0203. Lines open 8.00 am to 6.00 pm Monday to Friday.
For enquiries about Individual Savings Accounts and the tax deduction scheme for interest
HMRC Savings Schemes Office
St John's House
Merton Road
Bootle
Merseyside
L69 9BB
Tel (Individual Savings Accounts) 0845 604 1701
Tel (Taxation of bank and building society interest) 0845 980 0645
For enquiries about the Child Trust Fund
HMRC Child Trust Fund Office
Waterview Park
Mandarin Way
Washington
NE38 8QG
Phone Child Trust Fund Helpline on Tel 0845 302 1470 ( + 44 1355 359 002 if calling from overseas). Lines open 8.00 am to 8.00 pm every day except Christmas Day, Boxing Day and New Years Day.
For enquiries about reliefs and exemptions available under Double Taxation Treaties and the EU Interest and Royalties Directive
HMRC Residency
Fitz Roy House
PO Box 46
Nottingham
NG2 1BD
Tel 0845 070 0040 (+ 44 0151 210 2222 if calling from overseas)
For enquiries about the tax rules affecting pension schemes
HMRC Pension Schemes Service Yorke House
PO Box 62
Castle Meadow Road
Nottingham
NG2 1BG
Tel 0115 974 1600
For enquiries on the taxation of oil companies
Large Business Service, Oil and Gas Sector
22 Kingsway
London
WC2B 6NR
Tel: 020 7438 6358
Tel 0207 438 6358 or email: lbsoilandgas.hmrc@gnet.gov.uk
For enquiries on Stamp Duty, Stamp Duty Land Tax and Stamp Duty Reserve
Tax
Birmingham Stamp Office
9th Floor
City Centre House
30 Union Street
Birmingham
B2 4AR
Phone Stamp Taxes Helpline on Tel 0845 603 0135 ( + 44 1726 209 042 if
calling from overseas). Lines open 8.30 am to 5.00 pm Monday to Friday
(closed bank holidays).
Appendix 4
Appendix 5
Statutory approvals
Employee Share Schemes
Under Schedules 2, 3 & 4, ITEPA 2003:
Share Incentive Plans, Savings-Related Share Option Schemes & Company Share Option Plans:
Please send applications for approval to:
HMRC Employee Shares & Securities Unit
Room G52
100 Parliament Street
London
SW1A 2BQ
(See also our Share Schemes pages)
Pensions
Sections 590 & 591 ICTA 1988:
Occupational pensions, personal pensions, public sector schemes, FSAVC schemes & ex-gratia relevant payments
Please send applications for approval to:
HM Revenue & Customs
Pension Schemes Office
Yorke House
PO Box 62
Castle Meadow Road
Nottingham NG2 1BG
(See also our Pensions Schemes Office pages)
Qualifying life assurance policies
Schedule 15 ICTA 1988:
Certification of qualifying life assurance policies
Please send applications for approval to:
Claire Ritchie
Revenue Policy, Business Tax (Insurance)
3rd Floor (3C/09)
100 Parliament Street
London
SW1A 2BQ
