Finance Bill

Session 2013 - 14
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Finance Bill

Finance Bill
Schedule 31 — Annual tax on enveloped dwellings: returns, enquiries, assessments and appeals
Part 7 — Reviews and appeals
407

      (2)
If an appeal under sub-paragraph (1)(a) against an amendment of a self
assessment is made while an enquiry is in progress none of the steps
mentioned in paragraph 38(2)(a) to (c) may be taken in relation to the appeal
until the enquiry is completed.
Notice of appeal
5
36    (1)
Notice of an appeal under paragraph 35 must be given—
(a)
in writing,
(b)
within 30 days after the specified date,
(c)
to HMRC.
      (2)
In sub-paragraph (1) “specified date” means—
10
(a)
in relation to an appeal under paragraph 35(1)(a), the date on which
the notice of amendment was issued;
(b)
in relation to an appeal under paragraph 35(1)(b), the date on which
the closure notice was issued;
(c)
in relation to an appeal under paragraph 35(1)(c) the date on which
15
the HMRC determination was issued;
(d)
in relation to an appeal under paragraph 35(1)(d) or (e), the date on
which the notice of assessment was issued.
      (3)
The notice of appeal must specify the grounds of appeal.
      (4)
Where a determination has been made under paragraph 18 as to the amount
20
of tax to which a person is chargeable with respect to a single-dwelling
interest, the only grounds on which an appeal lies under paragraph 35(1)(c)
are—
(a)
that the condition in section 91(2)(a) (nature and value of interest) is
not met in relation to the interest in question on any day to which the
25
determination relates,
(b)
that the person, partnership or scheme that the determination
identifies as meeting the ownership condition on one or more days
does not meet that condition on any day in the chargeable period,
(c)
if the tax is determined to be chargeable by virtue of section 91(5),
30
that a person identified in the determination as one of the responsible
partners is not a responsible partner in relation to any tax chargeable
for the period in question, or
(d)
if the tax is determined to be chargeable by virtue of section 91(6),
that the person identified in the determination as the chargeable
35
person in relation to the collective investment scheme concerned is
not the chargeable person.
Late notice of appeal
37    (1)
This paragraph applies in a case where—
(a)
notice of appeal may be given to HMRC under this Schedule, but
40
(b)
no notice is given before the relevant time limit.
      (2)
Notice may be given after the relevant time limit if—
(a)
HMRC agree, or
(b)
where HMRC do not agree, the tribunal gives permission.

Finance Bill
Schedule 31 — Annual tax on enveloped dwellings: returns, enquiries, assessments and appeals
Part 7 — Reviews and appeals
408

      (3)
HMRC must agree to notice being given after the relevant time limit if the
appellant has requested in writing that HMRC do so and HMRC are
satisfied—
(a)
that there was reasonable excuse for not giving the notice before the
relevant time limit, and
5
(b)
that the request has been made without unreasonable delay.
      (4)
If a request of the kind mentioned in sub-paragraph (3) is made, HMRC
must notify the appellant whether or not HMRC agree to the request.
      (5)
In this paragraph “relevant time limit”, in relation to notice of appeal, means
the time before which the notice must to be given (disregarding this
10
paragraph).
Steps that may be taken following notice of appeal
38    (1)
This paragraph applies if notice of appeal has been given to HMRC.
      (2)
In such a case—
(a)
the appellant may notify HMRC that it requires them to review the
15
matter in question (see paragraph 39),
(b)
HMRC may notify the appellant of an offer to review the matter in
question (see paragraph 40), or
(c)
the appellant may notify the appeal to the tribunal.
      (3)
If the appellant notifies the appeal to the tribunal, the tribunal is to
20
determine the matter in question.
      (4)
See paragraphs 43 and 44 for provision about the circumstances in which an
appeal may be notified to the tribunal after a review has been required by
the appellant or offered by HMRC.
      (5)
This paragraph does not prevent the matter in question from being dealt
25
with in accordance with paragraph 46(1) (settling of appeals by agreement).
Right of appellant to require review
39    (1)
If the appellant notifies HMRC that it requires them to review the matter in
question, HMRC must—
(a)
notify the appellant of HMRC’s view of the matter in question within
30
the relevant period, and
(b)
review the matter in question in accordance with paragraph 41.
      (2)
Sub-paragraph (1) does not apply if—
(a)
the appellant has already given a notification under this paragraph
in relation to the matter in question,
35
(b)
HMRC have given a notification under paragraph 40 in relation to
the matter in question, or
(c)
the appellant has notified the appeal to the tribunal.
      (3)
In this paragraph “the relevant period” means—
(a)
the period of 30 days beginning with the day on which HMRC
40
receive the notification from the appellant, or
(b)
such longer period as is reasonable.

Finance Bill
Schedule 31 — Annual tax on enveloped dwellings: returns, enquiries, assessments and appeals
Part 7 — Reviews and appeals
409

Offer of review by HMRC
40    (1)
Sub-paragraphs (2) to (5) apply if HMRC notify the appellant of an offer to
review the matter in question.
      (2)
The notification must include a statement of HMRC’s view of the matter in
question.
5
      (3)
If the appellant notifies HMRC within the acceptance period that it accepts
the offer, HMRC must review the matter in question in accordance with
paragraph 41.
      (4)
If the appellant does not accept the offer in accordance with sub-paragraph
(3)—
10
(a)
HMRC’s view of the matter in question is treated as if it were
contained in a settlement agreement (see paragraph 46(1)); but
(b)
paragraph 46(3) (right to withdraw from agreement) does not apply
in relation to that notional agreement.
      (5)
Sub-paragraph (4) does not apply to the matter in question if, or to the extent
15
that, the appellant notifies the appeal to the tribunal.

(See paragraph 44 for the circumstances in which the appellant may do so
after accepting HMRC’s offer of a review).
      (6)
HMRC may not take the action mentioned in sub-paragraph (1) at any time
if before that time—
20
(a)
HMRC have given a notification under this paragraph in relation to
the matter in question,
(b)
the appellant has given a notification under paragraph 39 in relation
to the matter in question, or
(c)
the appellant has notified the appeal to the tribunal.
25
      (7)
In this paragraph “acceptance period” means the period of 30 days
beginning with the date of the document by which HMRC notify the
appellant of the offer to review the matter in question.
Nature of review
41    (1)
This paragraph applies if HMRC are required by paragraph 39 or 40 to
30
review the matter in question.
      (2)
The nature and extent of the review are to be such as appear appropriate to
HMRC in the circumstances.
      (3)
For the purpose of sub-paragraph (2), HMRC must, in particular, have
regard to steps taken before the beginning of the review—
35
(a)
by HMRC in deciding the matter in question, and
(b)
by any person in seeking to resolve disagreement about the matter in
question.
      (4)
The review must take account of any representations made by the appellant
at a stage which gives HMRC a reasonable opportunity to consider them.
40
      (5)
The review may conclude that HMRC’s view of the matter in question is to
be—
(a)
upheld,
(b)
varied, or

Finance Bill
Schedule 31 — Annual tax on enveloped dwellings: returns, enquiries, assessments and appeals
Part 7 — Reviews and appeals
410

(c)
cancelled.
      (6)
HMRC must notify the appellant of the conclusions of the review and their
reasoning within—
(a)
the period of 45 days beginning with the relevant day, or
(b)
such other period as may be agreed.
5
      (7)
In sub-paragraph (6) “relevant day” means—
(a)
in a case where the appellant required the review, the day when
HMRC notified the appellant of HMRC’s view of the matter in
question,
(b)
in a case where HMRC offered the review, the day when HMRC
10
received notification of the appellant’s acceptance of the offer.
      (8)
If HMRC do not give notice of the conclusions of the review within the
period specified in sub-paragraph (6), the review is treated as having
concluded that HMRC’s view of the matter in question is upheld.
      (9)
If sub-paragraph (8) applies, HMRC must notify the appellant of the
15
conclusions which the review is treated as having reached.
Effect of conclusions of review
42    (1)
If HMRC give notice of the conclusions of a review (see paragraph 41)—
(a)
the conclusions are to be treated as if they were contained in a
settlement agreement (see paragraph 46(1)), but
20
(b)
paragraph 46(3) (withdrawal from agreement) does not apply in
relation to that notional agreement.
      (2)
Sub-paragraph (1) does not apply to the matter in question if, or to the extent
that, the appellant notifies the appeal to the tribunal (see paragraphs 43 and
44).
25
Notifying appeal to tribunal after appellant has required review
43    (1)
Where HMRC have notified an appellant under paragraph 39(1)(a) of their
view of a matter to which an appeal under paragraph 35 relates, the
appellant—
(a)
may not notify the appeal to the tribunal before the beginning of the
30
post-review period;
(b)
may notify the appeal to the tribunal after the end of that period only
if the tribunal gives permission.
      (2)
Except where sub-paragraph (3) applies, the post-review period is the
period of 30 days beginning with the date of the document in which HMRC
35
give notice of the conclusions of the review in accordance with paragraph
41(6).
      (3)
If the period specified in paragraph 41(6) ends without HMRC having given
notice of the conclusions of the review, the post-review period is the period
that—
40
(a)
begins with the day following the last day of the period specified in
paragraph 41(6), and
(b)
ends 30 days after the date of the document in which HMRC give
notice of the conclusions of the review in accordance with paragraph
41(9).
45

Finance Bill
Schedule 31 — Annual tax on enveloped dwellings: returns, enquiries, assessments and appeals
Part 7 — Reviews and appeals
411

Notifying appeal to tribunal after HMRC have offered review
44    (1)
Where HMRC have offered to review the matter to which a notice of an
appeal under paragraph 35 relates, the right of the appellant at any time to
notify the appeal to the tribunal depends on whether or not the appellant has
accepted the offer at that time.
5
      (2)
If the appellant has accepted the offer, the appellant—
(a)
may not notify the appeal to the tribunal before the beginning of the
post-review period;
(b)
may notify the appeal to the tribunal after the end of that period only
if the tribunal gives permission.
10
      (3)
If the appellant has not accepted the offer, the appellant—
(a)
may notify the appeal to the tribunal within the acceptance period;
(b)
may notify the appeal to the tribunal after the end of that period only
if the tribunal gives permission.
      (4)
In this paragraph—
15
“acceptance period” has the same meaning as in paragraph 40;
“post-review period” has the same meaning as in paragraph 43.
Interpretation of paragraphs 38 to 44
45    (1)
In paragraphs 38 to 44—
(a)
“matter in question” means the matter to which an appeal relates;
20
(b)
a reference to a notification is to a notification in writing.
      (2)
In paragraphs 38 to 44, a reference to the appellant includes a person acting
on behalf of the appellant except in relation to—
(a)
notification of HMRC’s view under paragraph 39(1)(a),
(b)
notification by HMRC of an offer of review (and of their view of the
25
matter) under paragraph 40,
(c)
notification of the conclusions of a review under paragraph 41(6) or
(9).
      (3)
But if a notification falling within any of the paragraphs of sub-paragraph (2)
is given to the appellant, a copy of the notification may also be given to a
30
person acting on behalf of the appellant.
Settling of appeals by agreement
46    (1)
In relation to an appeal of which notice has been given under paragraph 36,
“settlement agreement” means an agreement between the appellant and an
officer of Revenue and Customs that is—
35
(a)
entered into before the appeal is determined, and
(b)
to the effect that the decision appealed against should be upheld
without variation, varied in a particular manner or discharged or
cancelled.
      (2)
Where a settlement agreement is entered into in relation to an appeal, the
40
consequences are to be the same (for all purposes) as if, at the time the
agreement was entered into, the tribunal had decided the appeal and had
upheld the decision without variation, varied it in that manner or
discharged or cancelled it, as the case may be.

Finance Bill
Schedule 31 — Annual tax on enveloped dwellings: returns, enquiries, assessments and appeals
Part 7 — Reviews and appeals
412

      (3)
Sub-paragraph (2) does not apply if, within 30 days from the date when the
settlement agreement was entered into, the appellant gives notice in writing
to HMRC that it wishes to withdraw from the agreement.
      (4)
Where a settlement agreement is not in writing—
(a)
sub-paragraph (2) does not apply unless the fact that an agreement
5
was entered into, and the terms agreed, are confirmed by notice in
writing given by HMRC to the appellant or by the appellant to the
HMRC, and
(b)
the references in sub-paragraphs (2) and (3) to the time when the
agreement was entered into are to be read as references to the time
10
when the notice of confirmation was given.
      (5)
Sub-paragraph (6) applies where notice of an appeal has been given under
paragraph 36 and—
(a)
the appellant notifies HMRC, orally or in writing, that the appellant
does not wish to proceed with the appeal, and
15
(b)
HMRC do not, within 30 days after that notification, give the
appellant notice in writing indicating that they are unwilling that the
appeal should be withdrawn.
      (6)
Sub-paragraphs (1) to (4) have effect as if, at the date of the appellant’s
notification, the appellant and an officer of Revenue and Customs had
20
agreed (orally or in writing, as the case may be) that the decision under
appeal should be upheld without variation.
      (7)
References in this paragraph to an agreement being entered into with an
appellant, and to the giving of notice or notification by or to the appellant,
include references to an agreement being entered into, or notice or
25
notification being given by or to, a person acting on behalf of the appellant
in relation to the appeal.
Appeal does not postpone recovery of tax
47    (1)
Where there is an appeal under paragraph 35, the tax charged by the
amendment or assessment in question remains due and payable as if there
30
had been no appeal.
      (2)
Sub-paragraph (1) is subject to paragraphs 48 and 49.
Application for payment of tax to be postponed
48    (1)
If the appellant has grounds for believing that the amendment or assessment
overcharges the appellant to tax, or as a result of the conclusion stated in the
35
closure notice the tax charged on the appellant is excessive, the appellant
may—
(a)
first apply by notice in writing to HMRC within 30 days of the
specified date for a determination by them of the amount of tax the
payment of which should be postponed pending the determination
40
of the appeal, and
(b)
if the appellant does not agree with a determination made by HMRC
under paragraph (a), refer the application for postponement to the
tribunal within 30 days from the date of the document notifying
HMRC’s determination.
45

Finance Bill
Schedule 31 — Annual tax on enveloped dwellings: returns, enquiries, assessments and appeals
Part 7 — Reviews and appeals
413

      (2)
An application under sub-paragraph (1)(a) must state the amount believed
to be overcharged to tax and the grounds for that belief.
      (3)
An application may be made more than 30 days after the specified date if
there is a change in the circumstances of the case as a result of which the
appellant has grounds for believing that it is overcharged to tax by the
5
decision appealed against.
      (4)
If, after an application under sub-paragraph (1) has been determined, there
is a change in the circumstances of the case as a result of which either party
has grounds for believing that the amount determined has become either
excessive or insufficient, that party may (if the parties cannot agree on a
10
revised determination) apply to the tribunal for a revised determination of
that amount.
      (5)
An application under sub-paragraph (4) may be made at any time before the
determination of the appeal.
      (6)
An application under this paragraph is to be subject to the relevant
15
provisions of Part 5 of the Taxes Management Act 1970 (see, in particular,
section 48(2)(b) of that Act).
      (7)
The amount of tax of which payment is to be postponed pending the
determination of the appeal is the amount (if any) by which it appears that
there are reasonable grounds for believing that the appellant is overcharged.
20
      (8)
Where an application under this paragraph has been determined, section
161 has effect in relation to any tax of which payment is not postponed as
if—
(a)
the tax were payable in accordance with an assessment under
paragraph 22 issued on the date on which the application was
25
determined, and
(b)
there was no appeal against that assessment.
      (9)
In this paragraph “specified date” has the meaning given by paragraph 36.
Agreement to postpone payment of tax
30
49    (1)
If the appellant and an officer of Revenue and Customs agree that payment
of an amount of tax should be postponed pending the determination of the
appeal, the consequences are to be the same (for all purposes) as if the
tribunal had, at the time when the agreement was entered into, made a
direction to the same effect as the agreement.
35

This is without prejudice to the making of a further agreement or further
direction.
      (2)
Where the agreement is not in writing—
(a)
sub-paragraph (1) does not apply unless the fact that an agreement
was entered into, and the terms agreed, are confirmed by notice in
40
writing given by the officer of Revenue and Customs to the appellant
or by the appellant to that officer, and
(b)
the reference in sub-paragraph (1) to the time when the agreement
was entered into is to be read as a reference to the time when notice
of confirmation was given.
45