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

411

 

      (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 92(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 92(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 92(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

412

 

      (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) and (2) (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—

30

(a)   

notify the appellant of HMRC’s view of the matter in question within

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

35

in relation to the matter in question,

(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—

40

(a)   

the period of 30 days beginning with the day on which HMRC

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

413

 

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

414

 

(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

415

 

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

416

 

      (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

417

 

      (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

 
 

 
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