Taxes Management Act 1970 section 77F

Issue, cancellation and effect of exemption certificates

Section 77F deals with the process by which a petroleum licence holder can be exempted from secondary liability for another party's unpaid tax, through the issue of an exemption certificate, and what happens when such a certificate is cancelled.

• Where a person (T) may become liable to tax that could be recovered from a licence holder (H), HMRC may issue an exemption certificate to H if satisfied that T will meet their tax obligations
• While the exemption certificate is in force, H cannot be pursued under secondary liability provisions for any tax payable by T that falls due during that period
• HMRC may cancel the certificate by written notice to H, but must give at least 30 days' notice before cancellation takes effect
• Even after cancellation, H remains protected from secondary liability for tax relating to profits or chargeable gains that arose while the certificate was still in force, even if that tax only becomes due after cancellation