Taxes Management Act 1970 section 64

Priority of claim for tax in Scotland

Section 64 establishes that HMRC's claim for certain unpaid tax deductions takes priority over other creditors when a defaulter's moveable goods are being seized in Scotland.

• Where a person owes PAYE income tax deductions or construction industry scheme deductions, HMRC's claim for those sums takes priority over other creditors seeking to seize the person's moveable goods in Scotland.
• The goods cannot be taken by any other creditor through diligence or assignation unless the PAYE and construction industry tax arrears that fell due on or before the date of the diligence are first paid to the collector on demand.
• The relevant sums cover PAYE deductions from taxable earnings for the twelve months before the date of diligence (net of any repayments due), plus any construction industry scheme deductions due for that period.
• If the tax arrears are not paid within ten days of the collector's demand, the collector may recover the sums by seizing and selling the moveable goods under a warrant obtained in accordance with section 63 of the Act.