Taxes Management Act 1970 section 37

Neglect: income tax and capital gains tax

Section 37 dealt with the consequences where income tax or capital gains tax was lost due to a taxpayer's neglect or failure to comply with their obligations, and was repealed by the Finance Act 1989.

• Section 37 originally provided HMRC with the ability to recover income tax or capital gains tax that had been lost to the Crown as a result of a taxpayer's neglect or default.
• The section addressed situations where a taxpayer failed to notify their chargeability to tax, failed to make a return, or submitted an incorrect return or accounts.
• Where such neglect or failure resulted in an insufficiency of tax assessed, the Revenue could make an assessment to recover the tax that should have been charged.
• This section was repealed by the Finance Act 1989, with its provisions effectively replaced and modernised by other assessment and discovery provisions within the Taxes Management Act 1970.