Commissioners for Revenue and Customs Act 2005 section 7

Former Inland Revenue matters

Section 7 transfers the powers and functions of former Inland Revenue staff to officers of the new HM Revenue and Customs, but only in relation to former Inland Revenue matters listed in Schedule 1, creating a ring-fence that keeps Inland Revenue and Customs and Excise powers separate.

• All functions previously held by Inland Revenue staff (including inspectors of taxes, collectors, and other revenue officials) are transferred to officers of Revenue and Customs, but only to the extent those functions relate to former Inland Revenue matters listed in Schedule 1.
• When an officer of Revenue and Customs is carrying out a former Inland Revenue function, they cannot use powers that originated from the former Customs and Excise side — this creates a protective ring-fence preventing the mixing of the two sets of powers.
• The ring-fence works in both directions: Inland Revenue powers can only be used for Inland Revenue matters, and Customs and Excise powers (transferred under section 6) are switched off when the officer is dealing with Inland Revenue matters.
• The transfer of former Inland Revenue functions to HMRC officers is subject to section 35, which transferred responsibility for criminal prosecutions to the Director of the Revenue and Customs Prosecutions Office.