What do paragraphs 2–3 of Schedule 2 to the Commissioners for Revenue and Customs Act 2005 do?

Paragraphs 2–3 make consequential amendments to the Taxes Management Act 1970 following the creation of HMRC. Paragraph 2 made an amendment that has since been repealed by Finance Act 2011. Paragraph 3 restricts the document format rules under section 113(3) of the 1970 Act to functions relating to former Inland Revenue matters covered by section 7 of the 2005 Act.

Why was the scope of section 113(3) of the Taxes Management Act 1970 limited by paragraph 3?

When HMRC merged the Inland Revenue and Customs and Excise, the document format rules in section 113(3) risked applying across all HMRC functions. Paragraph 3 confines those rules to former Inland Revenue matters under section 7 of the 2005 Act, ensuring they do not inadvertently extend to former Customs and Excise responsibilities, which are governed by separate provisions.

Does paragraph 2 of Schedule 2 to the CRCA 2005 still have any practical effect?

No, paragraph 2 no longer has any practical effect. The amendment it originally made to the Taxes Management Act 1970 was subsequently repealed by Finance Act 2011, specifically by Schedule 23, paragraphs 59 and 65. Only paragraph 3, which restricts the scope of section 113(3) document format rules, remains in force.

How does paragraph 3 affect HMRC documents issued for self-assessment versus customs duty matters?

For self-assessment notices concerning income tax—a former Inland Revenue responsibility under section 7—the section 113(3) formatting rules apply to the proper form of the document. However, for documents relating to customs duty matters, which were former Customs and Excise responsibilities, the section 113(3) formatting rules do not apply because those functions fall outside section 7's scope.

Commissioners for Revenue and Customs Act 2005 section Sch 2 para 2-3

Taxes Management Act 1970 (c. 9) [CRCA 2005 Sch 2 para 2-3]

Section Sch 2 paragraphs 2–3 deal with consequential amendments to the Taxes Management Act 1970, specifically limiting the application of document format rules to functions connected with certain former Inland Revenue matters.

Paragraph 2 made an amendment to the Taxes Management Act 1970 that has since been repealed by Finance Act 2011
Paragraph 3 restricts the scope of section 113(3) of the Taxes Management Act 1970, which governs the form of documents
The document format rules under section 113(3) now apply only in connection with functions relating to matters covered by section 7 of the Commissioners for Revenue and Customs Act 2005
Section 7 of the 2005 Act relates to the former responsibilities of the Inland Revenue, meaning the document rules are confined to those legacy functions

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