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Annual tax on enveloped dwellings: returns, enquiries, assessments and |
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1 (1) | The Commissioners for Her Majesty’s Revenue and Customs may by |
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regulations make provision about— |
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(a) | the form and content of a return; |
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(b) | the method of delivering a return. |
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(2) | Regulations under sub-paragraph (1) may make different provision for |
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(3) | Every return must include a declaration by the person making it to the effect |
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that the return is correct and complete to the best of the person’s knowledge. |
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(4) | A return is treated as containing any information provided by the person |
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making the return for the purpose of completing the return. |
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2 | In this Part of this Act— |
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(a) | references to the delivery of an annual tax on enveloped dwellings |
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return are to the delivery of a return that complies with all |
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requirements imposed by or under any of sections 157 and 159 and |
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(b) | references to the delivery of a return of the adjusted chargeable |
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amount are to the delivery of a return that complies with all |
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requirements imposed by or under any of sections 158 and 159 and |
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Amendment of return by chargeable person |
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3 (1) | A person who has delivered a return may amend the return by notice to an |
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officer of Revenue and Customs. |
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(2) | The Commissioners for Her Majesty’s Revenue and Customs may require |
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that notices under this paragraph— |
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(a) | are in a specified form, or |
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(b) | contain specified information. |
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(3) | An amendment under this paragraph must be made by the end of the next |
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chargeable period after the chargeable period to which the return relates |
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(but see the exception that follows). |
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(4) | If a return is delivered on or after 1 January in the chargeable period next |
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after that to which it relates, the latest time for amending the return under |
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this paragraph is the end of the period of 3 months after the day on which |
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Correction of return by HMRC |
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4 (1) | An officer of Revenue and Customs may correct any obvious error or |
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(2) | A correction under this paragraph— |
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(a) | is made by notice to the chargeable person, and |
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(b) | is regarded as effecting an amendment of the return. |
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(3) | The reference in sub-paragraph (1) to an error includes, for instance, an |
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arithmetical mistake or an error of principle. |
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(4) | A correction under this paragraph must be made within the 9 months |
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(a) | the day on which the return was delivered, or |
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(b) | if the correction is needed as a result of an amendment under |
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paragraph 3, the day on which the amendment was made. |
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(5) | A correction under this paragraph has no effect if the chargeable person— |
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(a) | amends the return so as to reject the correction, or |
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(b) | gives a notice rejecting the correction in the special period mentioned |
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(6) | A notice is given in the “special period” if it is given— |
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(a) | after the end of the period within which the chargeable person may |
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(b) | before the end of the 3 months beginning with the date of issue of the |
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(7) | A notice under sub-paragraph (5)(b) must be given to HMRC. |
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Duty to keep and preserve records |
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Duty to keep and preserve records |
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5 (1) | A person who is required to deliver a return for a chargeable period must— |
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(a) | keep any records that may be needed to enable the person to deliver |
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a correct and complete return, and |
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(b) | preserve those records in accordance with this paragraph. |
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(2) | The records must be preserved until the end of the later of the relevant day |
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(a) | an enquiry into the return is completed, or |
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(b) | if there is no enquiry, an officer of Revenue and Customs no longer |
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has power to enquire into the return. |
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(3) | “The relevant day” means— |
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(a) | the sixth anniversary of the last day of the chargeable period, or |
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(b) | any earlier day that may be specified in writing by the |
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Commissioners for Her Majesty’s Revenue and Customs. |
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(4) | Different days may be specified for different purposes under sub-paragraph |
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(5) | The records required to be kept and preserved under this paragraph |
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(a) | details of any relevant transaction (including any contract or |
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conveyance and any supporting maps, plans or similar documents |
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and records of relevant payments, receipts and financial |
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(b) | records of any valuation of the single-dwelling interest relevant to its |
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value on any day in the chargeable period. |
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(6) | The Commissioners for Her Majesty’s Revenue and Customs may by |
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(a) | provide that the records required to be kept under this paragraph do, |
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or do not, include records specified in the regulations; |
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(b) | specify supporting documents that are required to be kept under this |
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(7) | Regulations under this paragraph may make provision by reference to |
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things specified in a notice published by the Commissioners for Her |
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Majesty’s Revenue and Customs in accordance with the regulations (and not |
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withdrawn by a subsequent notice). |
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(8) | “Supporting documents” includes accounts, books, deeds, contracts, |
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Preservation of information etc |
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6 | The duty under paragraph 5 to preserve records may be satisfied— |
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(a) | by preserving them in any form and by any means, or |
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(b) | by preserving the information contained in them in any form and by |
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any means, subject to any conditions or exceptions specified in |
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writing by the Commissioners for Her Majesty’s Revenue and |
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Penalty for failure to keep and preserve records |
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7 (1) | A person who fails to comply with paragraph 5 in relation to a chargeable |
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period is liable to a penalty not exceeding £3,000, subject to the following |
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(2) | No penalty is incurred if an officer of Revenue and Customs is satisfied that |
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any facts that it is reasonable to require should be proved to HMRC, and that |
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would have been proved by the records, are proved by other documentary |
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evidence provided to them. |
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8 (1) | An officer of Revenue and Customs may enquire into a return if sub- |
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paragraph (2) has been complied with. |
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(2) | Notice of the intention to make an enquiry must be given— |
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(a) | to the person by whom or on whose behalf the return was delivered |
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(b) | before the end of the period of 12 months after the relevant date. |
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(3) | The relevant date is— |
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(a) | the filing date, if the return was delivered on or before that date; |
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(b) | the date on which the return was delivered, if the return was |
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delivered after the filing date; |
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(c) | the date on which the amendment was made, if the return is |
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amended under paragraph 3 (amendment by person making the |
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(4) | A return that has been the subject of one notice under this paragraph may |
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not be the subject of another, except a notice given in consequence of an |
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amendment (or another amendment) of the return under paragraph 3. |
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(5) | A notice under this paragraph is referred to as a “notice of enquiry”. |
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9 (1) | An enquiry extends to anything contained in the return, or required to be |
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contained in the return, that relates— |
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(a) | to the question whether the relevant person is chargeable to tax with |
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respect to the interest to which the return relates for the chargeable |
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(b) | to the amount of tax chargeable on the relevant person with respect |
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to that interest for that period. |
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(2) | Sub-paragraph (3) applies if the notice of enquiry is given as a result of the |
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amendment of a return under paragraph 3 (amendment by person making |
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(a) | at a time when it is no longer possible to give a notice of enquiry |
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under paragraph 8(3)(a) or (b), or |
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(b) | after an enquiry into the return has been completed. |
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(3) | The enquiry is limited to— |
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(a) | matters to which the amendment relates, and |
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(b) | matters affected by the amendment. |
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Amendment of self assessment during enquiry to prevent loss of tax |
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10 (1) | If at a time when an enquiry is in progress into a return an officer of Revenue |
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and Customs forms the opinion— |
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(a) | that the amount stated in the self assessment contained in the return |
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as the amount of tax payable is insufficient, and |
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(b) | that unless the assessment is immediately amended there is likely to |
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be a loss of tax to the Crown, |
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| the officer may by notice in writing to the relevant person amend the |
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assessment to make good the deficiency. |
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(2) | If the enquiry is one that is limited by paragraph 9(2) and (3) to matters |
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arising from an amendment of the return, sub-paragraph (1) above applies |
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only so far as the deficiency is attributable to the amendment. |
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(3) | For the purposes of this paragraph the period during which an enquiry is in |
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progress is the whole of the period— |
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(a) | beginning with the day on which the notice of enquiry is given, and |
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(b) | ending with the day on which the enquiry is completed. |
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Referral of questions to tribunal during enquiry |
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11 (1) | At any time when an enquiry is in progress into a return any question arising |
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in connection with the subject-matter of the return may be referred to the |
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tribunal for determination. |
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(2) | Notice of the referral must be given to the tribunal jointly by the relevant |
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person and an officer of Revenue and Customs. |
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(3) | More than one notice of referral may be given under this paragraph in |
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(4) | For the purposes of this paragraph the period during which an enquiry is in |
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progress is the whole of the period— |
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(a) | beginning with the day on which the notice of enquiry is given, and |
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(b) | ending with the day on which the enquiry is completed. |
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Withdrawal of notice of referral |
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12 | An officer of Revenue and Customs or the relevant person may withdraw a |
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notice of referral under paragraph 11. |
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Effect of referral on enquiry |
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13 (1) | While proceedings on a referral under paragraph 11 are in progress in |
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(a) | no closure notice may be given in relation to the enquiry, and |
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(b) | no application may be made for a direction to give a closure notice. |
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(2) | Proceedings on a referral are “in progress” where— |
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(a) | notice of referral has been given and has not been withdrawn, and |
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(b) | the questions referred have not been finally determined. |
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(3) | A question referred has been “finally determined” when— |
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(a) | it has been determined by the tribunal, and |
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(b) | there is no further possibility of the determination being varied or set |
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aside (disregarding any power to grant permission to appeal out of |
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14 (1) | A determination under paragraph 11 is binding on the parties to the referral |
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in the same way, and to the same extent, as a decision on a preliminary issue |
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(2) | The officer of Revenue and Customs conducting the enquiry must take the |
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determination into account— |
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(a) | in reaching conclusions on the enquiry, and |
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(b) | in the formulation of any amendments of the return that may be |
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required to give effect to those conclusions. |
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(3) | The question determined may not be reopened on an appeal, except to the |
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extent that it could be reopened if it had been determined as a preliminary |
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Tribunal to which referrals are made |
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15 (1) | Where the question to be referred under paragraph 11 is of the market value |
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of any single-dwelling interest, the referral is to be made to— |
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(a) | the Upper Tribunal, if the land is in England and Wales; |
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(b) | the Lands Tribunal for Scotland, if the land is in Scotland; |
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(c) | the Lands Tribunal for Northern Ireland, if the land is in Northern |
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(2) | In any other case a referral under paragraph 11 is to be made to— |
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(a) | the First-tier Tribunal, or |
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(b) | where determined by or under Tribunal Procedure Rules, the Upper |
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(3) | References to “the tribunal” in paragraphs 11 and 13 are to be read |
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16 (1) | An enquiry under paragraph 8 is completed when an officer of Revenue and |
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Customs informs the relevant person by a notice (a “closure notice”) that the |
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enquiry is complete and states the conclusions reached in the enquiry. |
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(2) | A closure notice must either— |
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(a) | state that in the officer’s opinion no amendment of the return is |
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(b) | make the amendments of the return required to give effect to the |
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(3) | A closure notice takes effect when it is issued. |
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Direction to complete enquiry |
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17 (1) | The relevant person may apply to the tribunal for a direction that a closure |
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notice is to be given within a specified period. |
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(2) | The tribunal hearing the application must give a direction unless satisfied |
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that HMRC have reasonable grounds for not giving a closure notice within |
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(3) | In this paragraph “the tribunal” means— |
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(a) | the First-tier Tribunal, or |
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(b) | where determined by or under Tribunal Procedure Rules, the Upper |
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HMRC determination where no return delivered |
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Determination of tax chargeable if no return delivered |
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18 (1) | This paragraph applies where condition A or condition B is met. |
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(a) | an officer of Revenue and Customs has reason to believe that a |
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person (“P”) is chargeable to tax for a chargeable period in respect of |
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a single-dwelling interest, |
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(b) | P has not made an annual tax on enveloped dwellings return for the |
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period in respect of the interest, and |
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(c) | the relevant filing date has passed. |
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(a) | an officer of Revenue and Customs has reason to believe that |
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additional tax is payable by a person (“P”) under section 161(2) for a |
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chargeable period in respect of a single-dwelling interest, |
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(b) | P has not made a return of the adjusted chargeable amount for the |
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period in respect of the interest, and |
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(c) | the relevant filing date has passed. |
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(4) | “The relevant filing date” means the date by which the officer believes a |
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return was required to be delivered. |
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(5) | The officer may make a determination (an “HMRC determination”) to the |
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best of the officer’s information and belief of the amount of tax to which P is |
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chargeable for the period concerned with respect to the interest. |
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(6) | Notice of the determination must be given to P and must state the date on |
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(7) | No HMRC determination may be made more than 4 years after the end of |
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the chargeable period to which it relates. |
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Determination to have effect as a self assessment |
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19 (1) | A determination under paragraph 18 has effect for enforcement purposes as |
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if it were a self assessment made by P. |
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(2) | In sub-paragraph (1) “for enforcement purposes” means for the purposes of |
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section 163 and Schedule 12 to FA 2003 (collection and recovery of tax etc). |
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(3) | Nothing in this paragraph affects any liability of a person to a penalty for |
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failure to deliver a return. |
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Determination superseded by actual self assessment |
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20 (1) | If after an HMRC determination has been made P delivers a return for the |
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chargeable period with respect to the interest in question, the self assessment |
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included in that return supersedes the determination. |
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(2) | Sub-paragraph (1) does not apply to a return delivered— |
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(a) | more than 4 years after the power to make the determination first |
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(b) | more than 12 months after the date of the determination, |
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(a) | proceedings have been begun for the recovery of any tax charged by |
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an HMRC determination, and |
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(b) | before the proceedings are concluded the determination is |
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superseded by a self assessment, |
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