Taxes Management Act 1970 section 62

Priority of claim for tax

Section 62 establishes that HMRC has a priority claim over other creditors when a tax defaulter's goods are seized, ensuring that certain tax debts are paid first.

• When a person's goods are subject to seizure by creditors, HMRC's claim for unpaid PAYE and construction industry scheme deductions takes priority over other debts (except landlord's claims for rent)
• The relevant tax debts cover PAYE income tax deductions from employees' taxable earnings and construction industry subcontractor deductions falling due in the 12 months before the date of seizure
• If the tax arrears are not paid within ten days of the collector's demand, the collector may seize and sell the goods to recover the full amount owed plus reasonable costs
• This section does not extend to England and Wales — it applies only in Scotland and Northern Ireland