Financial institution notices extend HMRC powers

Under new rules introduced in the Finance Act 2021, HMRC has been given extra powers to issue financial institution notices to access information about taxpayers’ bank accounts to drum out possible tax evasion. Rachel Clark, barrister at Bright Line Law, examines the powers

The Finance Act 2021 includes a controversial new information power for HMRC, introducing the concept of financial institution notices (FINs).

Financial institution notices have been described by the House of Lords Economic Affairs Committee as ‘poorly targeted, disproportionate in their effect on UK taxpayers and lacking necessary safeguards and rights of appeal’. They allow HMRC to request information and documents from banks, building societies and credit card issuers relating to third parties.

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