Revenue Scotland’s Enhanced Powers for Business Premises Inspections Guidance

Revenue Scotland’s Extra Powers During Business Premises Inspections

When Revenue Scotland is lawfully inspecting business premises, or the premises of an involved third party, it can use extra powers beyond simply entering and checking records. These can include bringing in specialists, carrying out investigations, taking samples, using equipment, and requiring areas or items to be left untouched. However, these powers do not apply to inspections carried out to value, measure, or determine the character of property, and special notice rules apply where equipment or materials are to be used.

• Revenue Scotland may bring assistants, including non-employees, and may be accompanied by police if there is reasonable cause to expect serious obstruction.
• It can carry out examinations or investigations it considers necessary and may require part or all of the premises, and anything in them, to be left undisturbed for as long as reasonably necessary.
• It may take samples, carry out borings or other works, and install or maintain monitoring equipment or other apparatus on the premises.
• Equipment or materials, including heavy machinery, can be brought onto the premises if agreed with the occupier or after at least seven days’ written notice, unless advance notice would seriously prejudice tax assessment or collection.
• If no advance notice is given for the use of equipment or materials, Revenue Scotland must provide or leave a written notice at the start of the inspection explaining the consequences of obstruction and stating if tribunal approval was obtained.
• These extra powers are only available during a lawful inspection of business premises and are not available for inspections aimed at valuing, measuring, or determining the character of the premises or property.

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Revenue Scotland inspections of business premises: extra powers during an inspection

This page explains the additional powers Revenue Scotland may use when inspecting business premises, or the premises of an involved third party, under section 144 of the Revenue Scotland and Tax Powers Act 2014. These powers matter because they go beyond simply entering premises and looking at records. They can include bringing in specialists, taking samples, using equipment, and requiring parts of the premises to be left untouched while an investigation is carried out.

What this rule is about

The rule deals with what Revenue Scotland can do once it is lawfully carrying out an inspection of business premises. It is not the general power to inspect in the first place. Instead, it adds to the inspection powers described elsewhere in the legislation and guidance.

The focus is on business premises and the premises of an involved third party. In that setting, Revenue Scotland may need to do more than look at documents or ask questions. For example, it may need technical help, physical access to items or materials, or time to preserve the condition of the premises while enquiries are made.

The source also draws an important boundary. These extra powers are not available where the inspection is being carried out for the purpose of valuing, measuring, or determining the character of premises or property. That kind of inspection is treated differently.

What the official source says

According to the guidance, when Revenue Scotland inspects business premises or the premises of an involved third party, it has several additional powers.

It may bring another person to assist with the inspection. That person can enter and inspect the property with Revenue Scotland and does not need to be a Revenue Scotland employee. Revenue Scotland may also be accompanied by a police constable if there is reasonable cause to expect serious obstruction.

It may carry out any examination or investigation it considers necessary in the circumstances.

It may direct that part of the premises, or all of them, and anything in them, must be left undisturbed for as long as is reasonably necessary for the examination or investigation.

It may take samples of material on the premises. This can include experimental borings or other works on the premises, and installing, keeping, or maintaining monitoring or other apparatus there. The guidance says any sample taken may be disposed of in whatever manner Revenue Scotland determines.

It may also bring onto the premises and use equipment or materials, including heavy machinery, if needed for the purpose of the inspection. But this particular power is subject to timing rules. It can be used at a time agreed with the occupier, unless either:

• the occupier was given at least seven days’ written notice of the inspection time and the notice said this power would be used, or
• Revenue Scotland has reasonable grounds for believing that advance notice would seriously prejudice the assessment or collection of tax.

If one of those exceptions applies, the power may be exercised at any reasonable time.

Where no advance notice was given for the use of equipment or materials, Revenue Scotland must provide a written notice at the start of the inspection. That notice must be given to the occupier if present, or to someone who appears to be in charge if the occupier is absent. If neither is possible, it must be left in a prominent place on the premises.

The written notice must state the possible consequences of obstruction. If tribunal approval was obtained for the exercise of the power, the notice must also say so.

The guidance also says that when Revenue Scotland or an authorised person leaves the premises, it will tell the person receiving the inspection what happens next. For example, the inspection may continue the next day, may be complete with a written outcome to follow, or may be complete on site but with enquiries continuing elsewhere.

What this means in practice

In practical terms, an inspection of business premises can be quite intrusive where the legislation allows it. Revenue Scotland is not limited to a passive review of records. It may preserve the scene, carry out technical work, and involve outside specialists if that is considered necessary.

For the occupier or the person dealing with the inspection, the main practical points are these.

• The inspection may involve people who are not Revenue Scotland staff, such as technical experts.
• Parts of the premises or items on them may have to be left untouched for a period.
• Materials may be sampled, and equipment may be brought in and used.
• Where heavy equipment or similar materials are to be used, notice and timing become important.
• If no advance notice was given for that use of equipment, a written notice should be provided or left on site in the way the legislation requires.

The power to direct that things be left undisturbed can matter immediately. A business may need to stop using a room, machine, stock area, or records storage area for a period if Revenue Scotland considers that reasonably necessary for its investigation.

The power to use equipment, including heavy machinery, is more controlled than some of the other powers. The occupier’s agreement is one route. If there is no agreement, Revenue Scotland must usually have given at least seven days’ written notice stating that it intends to use that power. The exception is where giving notice would seriously prejudice tax assessment or collection. In that case, the power can be exercised at a reasonable time without prior notice, but the written notice requirements at the beginning of the inspection still matter.

How to analyse it

If you are trying to work out whether Revenue Scotland is acting within these powers, the sensible questions are:

• Is this a lawful inspection of business premises, or of the premises of an involved third party?
• Is Revenue Scotland relying on the extra powers in section 144, rather than only the basic inspection powers?
• Is the step being taken one that the legislation actually permits, such as bringing an assistant, taking samples, directing that items be left undisturbed, or using equipment on site?
• Is the action said to be necessary in the circumstances, or reasonably necessary where the legislation uses that test?
• If equipment or materials are being brought onto the premises, was the timing agreed with the occupier, or was proper written notice given at least seven days in advance?
• If there was no advance notice, is Revenue Scotland relying on the ground that notice would seriously prejudice the assessment or collection of tax?
• Where no advance notice was given, was the required written notice handed to the right person or left prominently on the premises?
• Is the inspection actually for valuation, measurement, or determining the character of the premises or property? If so, these extra powers are not available under this provision.

It is also worth separating three different issues that can easily be blurred together:

• whether Revenue Scotland has the right to be on the premises at all,
• what it may do once there, and
• what procedural steps must be followed for particular powers, especially the use of equipment or materials.

Example

Illustration: Revenue Scotland is inspecting a warehouse used in a business. During the inspection, it considers that a specialist is needed to help examine stored materials and the layout of a particular area. It brings that specialist onto the site. It also directs that one section of the warehouse and the items in it must not be moved until the examination is complete. If Revenue Scotland wants to carry out borings or use heavy equipment on the site, it would normally need the occupier’s agreement or at least seven days’ written notice stating that it intends to use that power, unless advance notice would seriously prejudice the assessment or collection of tax.

Why this can be difficult in practice

Several parts of this regime are fact-sensitive.

First, the legislation gives Revenue Scotland a degree of judgement. Terms such as what it “considers necessary”, what is “reasonably necessary”, and whether there are “reasonable grounds” for believing advance notice would seriously prejudice tax assessment or collection all depend on the facts.

Secondly, the line between different kinds of inspection can matter. These extra powers are expressly unavailable where the inspection is for valuing, measuring, or determining the character of the premises or property. In some cases, it may not be obvious at first glance whether the inspection is really directed at those matters or at something else.

Thirdly, procedural compliance is important. A power may exist in principle, but the way it is exercised may still matter. For example, where equipment or materials are used without advance notice, the written notice at the start of the inspection is not just a formality. The source says it must identify the possible consequences of obstruction, and it must mention tribunal approval if approval has been obtained.

Finally, the presence of non-employees or police can be unsettling, but the source makes clear that this can be lawful in the circumstances described. The key question is not whether the person is a Revenue Scotland employee, but whether Revenue Scotland considers that person is needed to assist with the inspection, or in the case of police presence, whether there is reasonable cause to expect serious obstruction.

Key takeaways

• Revenue Scotland has extra powers during a lawful inspection of business premises, including bringing assistants, carrying out investigations, preserving areas, taking samples, and using equipment.
• The power to use equipment or materials on the premises is subject to specific notice and timing rules, unless advance notice would seriously prejudice tax assessment or collection.
• These extra powers do not apply where the inspection is for valuing, measuring, or determining the character of the premises or property.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Revenue Scotland’s Enhanced Powers for Business Premises Inspections Guidance

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