Income Tax Act 2007 section 954

Proceedings begun after a set-off claim is made

Section 954 deals with what happens to HMRC's ability to collect income tax once a taxpayer has made a claim to set off an amount against that tax liability.

• Once a set-off claim is made, HMRC cannot take collection proceedings for the income tax that would be discharged if the claim succeeds, until the claim is finally determined.
• The due date for the income tax remains unchanged — the protection from collection action does not alter when the tax legally falls due.
• Any income tax that has gone unpaid as a result of this protection must be paid as soon as the set-off claim is finally determined.
• Proceedings includes enforcement actions such as distraint (seizure of goods) or attachment (of debts or earnings).