What must HMRC do with the revenues it collects under section 44 of the Commissioners for Revenue and Customs Act 2005?

Under section 44, HMRC must pay the revenues it collects, such as taxes and duties, into the Consolidated Fund. The timing and manner of these payments are as the Treasury directs. Before payment, HMRC may deduct specified disbursements including repayments, drawback, discounts, and tax credits from the gross amount collected.

What receipts are excluded from payment into the Consolidated Fund under section 44?

Excluded receipts include national insurance contributions paid into the National Insurance Fund, sums required by legislation to be paid into the National Loans Fund, student loan repayments paid to the Secretary of State, air passenger duty long haul sums for Northern Ireland, and amounts payable into the Scottish Consolidated Fund.

What deductions may HMRC make before paying revenues into the Consolidated Fund?

HMRC may deduct payments connected with drawback, repayments and discounts, payments to Scotland under the Scotland Act 1998 for additional tax, payments to the Isle of Man representing its share of common duties under the Isle of Man Act 1979, and tax credits. The list of permitted deductions is exhaustive.

Does the definition of repayments under section 44 include interest paid by HMRC?

Yes. Repayments include not only the return of overpaid tax or duty and payments in respect of actual or deemed credits, but also any statutory interest or repayment supplement HMRC must pay alongside. The full amount — both principal repayment and interest — may be deducted from revenues before payment into the Consolidated Fund.

Commissioners for Revenue and Customs Act 2005 section 44

Payment into Consolidated Fund

Section 44 sets out the rules governing how HMRC must handle the revenues it collects, specifying what must be paid into the Consolidated Fund, what is excluded, and what deductions are permitted before payment.

HMRC must pay revenues collected into the Consolidated Fund at times and in the manner directed by the Treasury, after permitted deductions
Certain receipts are excluded, including national insurance contributions, sums for the National Loans Fund, student loan repayments, and sums due to the Scottish or Northern Ireland Consolidated Funds
Permitted deductions before payment include drawback, repayments, discounts, Scotland Act additional tax payments, Isle of Man shared duty payments, and tax credits
Repayments for deduction purposes include not only repaid tax or duty itself but also any related interest or repayment supplement

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