Income Tax Act 2007 section 940A

No appropriate bond or combination of bonds

Section 940A deals with the situation where HMRC holds funding bonds but does not have a bond, or combination of bonds, in the right denomination to satisfy a repayment due to a creditor, and sets out the steps that can be taken to resolve this.

• Where HMRC holds funding bonds but none are of the right value or combination to match the amount owed to a creditor, HMRC can require the bond issuer to provide suitable bonds
• The bond issuer must, if requested by HMRC, ensure that HMRC holds an appropriate bond or combination of bonds to satisfy the amount payable — for example, by sub-dividing a single bond into smaller denominations
• Any person asked by the bond issuer to help must do so, but neither the bond issuer nor any other person is required to act if compliance would be impracticable
• When deciding whether a bond or combination of bonds is appropriate, HMRC may consider the bond's value at issue, the nature and size of any person's interest in it, and the terms on which it was issued