Records of Special Commissioners of Income Tax

Records of the Special Commissioners of Income Tax relating to the assessment of income tax and appeals against such assessment.

Case files are in EM 1; minutes of appeals and decisions of commissioners are in EM 2 and files relating to administrative and procedual issues are in EM 3. Decisions are in EM 4

Instructions are in

IR 112

Records of the Combined Tax Tribunal are in

LB

Miscellaneous books of the special commissioners are in

IR 86

Specimen forms are in

IR 9

From 1988 Lord Chancellor's Department

Topics

Taxation

The Special Commissioners of Income Tax were appointed by the Treasury under the Income Tax Acts 1805 and 1842. Initially their duties included the grant of tax relief to charities on their property income and to foreigners holding public stock. They also carried out assessment work on certain income from annuities and dividends. From 1842, to enable taxpayers, particularly small businessmen, to avoid disclosing their affairs to the local and unpaid general commissioners, they could elect to be assessed by these centrally-appointed, expert, and salaried special commissioners. If dissatisfied with an assessment by the special or general commissioners a taxpayer could apply to the special commissioners to be heard in person by way of an appeal. Other duties of the special commissioners included the assessment for tax of foreign and colonial dividends and, from 1860, the profits and gains of railway companies. Through a Claims Branch they also dealt with tax repayment matters although this work passed to the Chief Inspector of Taxes Office in 1920. Their Office, under the direction of the board as ex-officio special commissioners, was included on the establishment of the Secretaries' Office of the Board of Inland Revenue.

The Special Commissioners of Income Tax were appointed by the Treasury but supported administratively by the Board of Inland Revenue, until the Finance Act 1984 transferred its functions to the Lord Chancellor's Department.

In 1909 the special commissioners were made responsible for the newly introduced super-tax, re-named surtax in 1927. The Income Tax Management Act 1964 relieved them of this and other executive work, leaving them only with appellate duties as a full-time independent appeal body outside the departmental administration of the Board of Inland Revenue. In most cases appeals against tax assessments take place locally before general commissioners but taxpayers have an alternative right of appeal to the special commissioners. These are heard in London or on circuit and either the taxpayer or the crown may appeal to the High Court on a point of law against a determination of the special commissioners.

Following these changes the Office of the Special Commissioners became the Surtax Office and its head the controller of surtax. This official was also inspector of foreign dividends and had a small staff to deal with income tax on overseas dividends and interest paid through banks and other agents in this country. Under the Finance Act 1972 surtax was abolished and replaced by a graduated tax on higher incomes.