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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Enforcement action: distraint: general considerations: exempt goods (indirect taxes)

The restrictions detailed at DMBM655130 apply to all distraints by DMOs for both direct and indirect taxes. They are based on a combination of common, case, court and insolvency laws and rules.

In addition, for indirect taxes only, under S1 1997/1431 Regulation 6 (Schedule 1) there is a similar list of ‘GOODS AND CHATTELS NOT SUBJECT TO LEVY’ covering goods located in a dwelling house that are reasonably required for the domestic needs of any person residing in that house, specific to distraint. The Regulation says:-

Exempt goods

“SI 1997/1431 Regulation 6 (Schedule 1)

GOODS AND CHATTELS NOT SUBJECT TO LEVY

  1. Any of the following goods and chattels which are located in a dwelling house at which distress is being levied and are reasonably required for the domestic needs of any person residing in that dwelling house

(a) beds and bedding;

(b) household linen;

(c) chairs and settees;

(d) tables;

(e) food;

(f) lights and light fittings;

(g) heating appliances;

(h) curtains;

(i) floor coverings;

(j) furniture, equipment and utensils used for cooking, storing or eating food;

(k) refrigerators;

(l) articles used for cleaning, mending, or pressing clothes;

(m) articles used for cleaning the home;

(n) furniture used for storing;

(i) clothing, bedding or household linen;

(ii) articles used for cleaning the home;

(iii) utensils used for cooking or eating food;

(o) articles used for safety in the home;

(p) toys for the use of any child within the household;

(q) medical aids and medical equipment.

  1. Any of the following items which are located in premises used for the purposes of any profession, trade or business;

(a) fire fighting equipment for use on the premises;

(b) medical aids and medical equipment for use on the premises.”

Note: Although ‘tools of trade’ are not referred to in these provisions you should follow the guidance at DMBM655150 when considering levying on them for indirect taxes.