Explanatory note

These Regulations make provision for appeals against decisions of the Inland Revenue in respect of child trust funds, under section 22 of the Child Trust Funds Act 2004 (c. 6) (“the 2004 Act”). These appeals are to appeal tribunals within the Appeals Service, with a further right of appeal on a point of law to the Social Security Commissioners. These arrangements for the hearing of appeals are temporary, until the Treasury make an order under section 24(1) of the 2004 Act which will not be until the tax tribunals have been reformed. (Those tax tribunals will hear appeals concerning tax liabilities and relief, withdrawal of relief and recovery of tax for child trust funds, provided for by regulations made under section 13(1) to (3) and (5) of the 2004 Act, from the commencement of the child trust funds scheme on 6th April 2005).

The principal effects of these Regulations are (1) to provide for the manner in which notice of appeal is to be given and (2) to apply and modify provisions of the Taxes Management Act 1970, and social security legislation dealing with social security appeals, for child trust fund appeals.

Regulation 1 provides for citation, commencement and duration (it is intended that these temporary arrangements for the hearing of child trust fund appeals will be ended by an Order under section 24(1) of the 2004 Act, once the reform of tribunals referred to is completed).

Regulation 2 provides for interpretation.

Regulation 3 prescribes the manner in which notice of appeal to the Inland Revenue is to be given.

Regulation 4 applies and makes technical modifications to section 54 of the Taxes Management Act 1970, for child trust fund appeals. Regulations 5 to 15 apply and make technical modifications to social security appeals legislation for Great Britain and Northern Ireland, for child trust fund appeals.

A full Regulatory Impact Assessment was prepared and issued on the introduction to Parliament of the Child Trust Funds Bill (passed as the 2004 Act) in November 2003.