Taxes Management Act 1970 section 76

Protection for certain trustees, agents and receivers

Section 76 protects trustees, agents and receivers from personal liability when they have properly retained money from a taxpayer's funds to pay that taxpayer's tax, and have paid it to HMRC.

• A trustee, agent or receiver who is assessed to tax on behalf of another person is protected from personal liability if they have retained sufficient funds and paid the tax due to HMRC.
• The protection applies where the person has been properly charged to tax in their representative capacity — for example, as a trustee managing assets on behalf of a beneficiary.
• The trustee, agent or receiver is entitled to retain out of any money coming into their hands on behalf of the taxpayer enough to pay the tax for which they have been assessed.
• Once they have paid the retained amount to HMRC, they are discharged from any further claim by the taxpayer or any other person in respect of that money.

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