What does Schedule 2 paragraph 18 of the Commissioners for Revenue and Customs Act 2005 do?

Schedule 2 paragraph 18 restricts HMRC's ability to share information with financial services investigators. It provides that HMRC may only supply information under section 350 of the Financial Services and Markets Act 2000 if that information was obtained or held in connection with former Inland Revenue functions as defined by section 7 of the 2005 Act.

What type of HMRC information can be shared with financial services investigators under this provision?

Only information obtained through former Inland Revenue functions may be shared. This includes data relating to income tax, corporation tax, capital gains tax, inheritance tax, stamp duties, national insurance contributions, tax credits, and child benefit. Information from former Customs and Excise functions, such as VAT or excise duties, cannot be disclosed under this provision.

What investigations does this provision relate to under the Financial Services and Markets Act 2000?

The provision relates to investigations carried out under section 168 of the Financial Services and Markets Act 2000. These investigations typically concern suspected market abuse, breaches of listing rules, or other contraventions of financial services legislation. HMRC supplies information under section 350 of the same Act to support such investigations.

Can HMRC share VAT records with the Financial Conduct Authority under Schedule 2 paragraph 18?

No. VAT records are obtained through former Customs and Excise functions, not former Inland Revenue functions. Schedule 2 paragraph 18 only permits disclosure of information connected with former Inland Revenue matters as defined by section 7 of the Commissioners for Revenue and Customs Act 2005, so VAT data is excluded from this sharing framework.

Commissioners for Revenue and Customs Act 2005 section Schedule 2 paragraph 18

Financial Services and Markets Act 2000

Schedule 2 paragraph 18 restricts HMRC's ability to share information with financial services investigators, ensuring that only information obtained through former Inland Revenue functions may be disclosed.

HMRC may supply information under section 350 of the Financial Services and Markets Act 2000 to assist with certain investigations
The investigations in question are those carried out under section 168 of the Financial Services and Markets Act 2000
Information may only be shared if it was obtained or held in connection with former Inland Revenue matters (as defined by section 7 of the Commissioners for Revenue and Customs Act 2005)
Information obtained through former Customs and Excise functions cannot be disclosed under this provision

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