What does section 47 of the Commissioners for Revenue and Customs Act 2005 do?

Section 47 authorises the Treasury to provide HMRC with emergency funding from the Consolidated Fund — the government's central bank account — when HMRC's available cash from tax receipts and other revenues is insufficient to meet obligatory outgoing payments such as contributions to the National Insurance Fund and other specified payments under section 44.

What types of payment can be funded through the Consolidated Fund drawdown under section 47?

The drawdown facility covers payments into the National Insurance Fund, payments into the Northern Ireland National Insurance Fund, and other categories of payment or disbursement listed in section 44(2)(c) to (g) and section 44(3). These are revenue-related payments HMRC handles as part of its collection and distribution role, not its own operational expenditure.

Does section 47 apply when HMRC's funding shortfall is caused by estimation errors?

Yes. Section 47 explicitly confirms the emergency funding facility is available even where the shortfall arose because a previous allocation of funds was based on an estimate that proved inaccurate. This includes situations where HMRC paid too much into the Consolidated Fund based on an overestimate of net revenue.

Can section 47 be used to fund HMRC's own departmental running costs?

No. The emergency funding mechanism under section 47 is limited in scope to revenue-related payments and disbursements that HMRC is required to make under section 44. HMRC's own departmental expenditure, such as staff costs and administrative expenses, is provided for separately under section 43 of the Act.

Commissioners for Revenue and Customs Act 2005 section 47

Payment out of Consolidated Fund

Section 47 allows the Treasury to provide HMRC with emergency funding from the Consolidated Fund when HMRC's available funds are insufficient to meet certain obligatory outgoing payments.

The Treasury may step in when HMRC lacks sufficient funds to make payments into the National Insurance Fund, the Northern Ireland National Insurance Fund, or other specified payments and disbursements under section 44
The Treasury is authorised to pay money from the Consolidated Fund directly to HMRC to cover these shortfalls
This emergency funding facility applies regardless of the cause of the shortfall, including situations where earlier allocations were based on inaccurate estimates
The drawdown facility applies only to revenue-related outgoings permitted under section 44 and does not extend to HMRC's own departmental running costs, which are dealt with separately under section 43

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