Taxes Management Act 1970 section 77B

Pre-conditions for serving secondary-liability notice

Section 77B sets out the five conditions (A to E) that must all be met before HMRC can serve a secondary-liability notice on a UK continental shelf petroleum licence holder to recover unpaid tax from a non-UK resident.

• The tax must have been assessed on a non-UK resident person in connection with activities on the UK continental shelf, and must not be employment income tax under ITEPA 2003.
• The tax must be linked to one or more petroleum licences granted under Part 1 of the Petroleum Act 1998, though part of the tax may be unrelated to any licence.
• The tax must remain unpaid in full more than 30 days after it becomes due and payable.
• The relevant charging provisions are TCGA 1992 section 276 (capital gains), ITTOIA 2005 section 874 (income tax on trading and other income), or CTA 2009 section 1313 (corporation tax).