Direct recovery of debts rule amended in draft Finance Bill 2015-16

Following strong criticism from across the profession, the government has toned down the rules in the latest Finance Bill on direct recovery of debts (DRD) which allow HMRC to access bank accounts to recover tax debts, as well as making a number of amendments on changes to inheritance tax on inherited spousal properties and tax liability on loan derivatives

The amendment to the rules on DRD to increase protection for vulnerable taxpayers is one of five amendments to the Finance Bill 2015-16 which have been made at the committee stage.

The amendment to the clause of the bill which deals with ‘enforcement by deduction from accounts’ says HMRC has a duty to ‘consider whether a debtor may be put at a particular disadvantage if this new power is exercised, in pursuit of a debt owed by that person, and to affirm in writing that this duty has been carried out’. The criteria by which this disadvantage will be judged will be set out in guidance.

Commenting on the changes, the Low Incomes Tax Reform Group (LITRG) said the amendment followed discussions between HMRC officials and LITRG, CIOT and the Association of Taxation Technicians over recent weeks.

Your free features:

Breaking news and expert analysis
Customisable daily newsletters
Six free CPD learning modules each year
Personalised CPD tracker
Top 75 Firms league tables
Regulatory changes
Hardman’s Tax Data

Tax | Monthly ‘payday’ tax bills for 7m self assessment PAYE taxpayers

Business | King’s Speech outlines closer trade ties with EU, less red tape

Business | Warning on tax adviser regulation by the backdoor

Tax | Chancellor ‘failed to listen’ on pension pot tax, say Lords

Tax | Farmers given £2.5m allowance for inheritance tax in u-turn

Navigate

Tax Services

Your free features:

Sign up to Business & Accountancy Daily