Finance Bill

House of Lords

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Finance Bill

Finance Bill
Schedule 33 — Annual tax on enveloped dwellings: returns, enquiries, assessments and appeals
Part 7 — Reviews and appeals
422

      (3)
If the appellant notifies the appeal to the tribunal, the tribunal is to
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
      (5)
This paragraph does not prevent the matter in question from being dealt
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
10
question, HMRC must—
(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—
15
(a)
the appellant has already given a notification under this paragraph
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.
20
      (3)
In this paragraph “the relevant period” means—
(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.
Offer of review by HMRC
25
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.
      (3)
If the appellant notifies HMRC within the acceptance period that it accepts
30
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)—
(a)
HMRC’s view of the matter in question is treated as if it were
35
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
that, the appellant notifies the appeal to the tribunal.
40

(See paragraph 44 for the circumstances in which the appellant may do so
after accepting HMRC’s offer of a review).

Finance Bill
Schedule 33 — Annual tax on enveloped dwellings: returns, enquiries, assessments and appeals
Part 7 — Reviews and appeals
423

      (6)
HMRC may not take the action mentioned in sub-paragraph (1) at any time
if before that time—
(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
5
to the matter in question, or
(c)
the appellant has notified the appeal to the tribunal.
      (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.
10
Nature of review
41    (1)
This paragraph applies if HMRC are required by paragraph 39 or 40 to
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.
15
      (3)
For the purpose of sub-paragraph (2), HMRC must, in particular, have
regard to steps taken before the beginning of the review—
(a)
by HMRC in deciding the matter in question, and
(b)
by any person in seeking to resolve disagreement about the matter in
question.
20
      (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.
      (5)
The review may conclude that HMRC’s view of the matter in question is to
be—
(a)
upheld,
25
(b)
varied, or
(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
30
(b)
such other period as may be agreed.
      (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,
35
(b)
in a case where HMRC offered the review, the day when HMRC
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.
40
      (9)
If sub-paragraph (8) applies, HMRC must notify the appellant of the
conclusions which the review is treated as having reached.

Finance Bill
Schedule 33 — Annual tax on enveloped dwellings: returns, enquiries, assessments and appeals
Part 7 — Reviews and appeals
424

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
(b)
paragraph 46(3) (withdrawal from agreement) does not apply in
5
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).
Notifying appeal to tribunal after appellant has required review
10
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
post-review period;
15
(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
give notice of the conclusions of the review in accordance with paragraph
20
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—
(a)
begins with the day following the last day of the period specified in
25
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).
Notifying appeal to tribunal after HMRC have offered review
30
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.
      (2)
If the appellant has accepted the offer, the appellant—
35
(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.
      (3)
If the appellant has not accepted the offer, the appellant—
40
(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—

Finance Bill
Schedule 33 — Annual tax on enveloped dwellings: returns, enquiries, assessments and appeals
Part 7 — Reviews and appeals
425

“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;
5
(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
10
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
15
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—
20
(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
25
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.
      (3)
Sub-paragraph (2) does not apply if, within 30 days from the date when the
30
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
was entered into, and the terms agreed, are confirmed by notice in
35
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
when the notice of confirmation was given.
40
      (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

Finance Bill
Schedule 33 — Annual tax on enveloped dwellings: returns, enquiries, assessments and appeals
Part 7 — Reviews and appeals
426

(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
5
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
10
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
15
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
20
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
25
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.
30
      (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
35
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
40
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.

Finance Bill
Schedule 33 — Annual tax on enveloped dwellings: returns, enquiries, assessments and appeals
Part 7 — Reviews and appeals
427

      (6)
An application under this paragraph is to be subject to the relevant
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
5
there are reasonable grounds for believing that the appellant is overcharged.
      (8)
Where an application under this paragraph has been determined, section
163 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
10
paragraph 22 issued on the date on which the application was
determined, and
(b)
there was no appeal against that assessment.
      (9)
In this paragraph “specified date” has the meaning given by paragraph 36.
15
Agreement to postpone payment of tax
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
20
direction to the same effect as the agreement.

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
25
was entered into, and the terms agreed, are confirmed by notice in
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
30
of confirmation was given.
      (3)
References in this paragraph to an agreement being entered into with an
appellant, and to the giving of notice to or by the appellant, include
references to an agreement being entered into, or notice being given to or by,
a person acting on behalf of the appellant in relation to the appeal.
35
Assessments and self assessments
50    (1)
This paragraph applies where an appeal under paragraph 35(1) has been
notified to the tribunal.
      (2)
If the tribunal decides that the appellant is overcharged by a self assessment
or any other assessment, the assessment must be reduced accordingly.
40
      (3)
If the tribunal does not so decide, the assessment is to stand good.
      (4)
If it appears to the tribunal that the appellant is undercharged to tax by a self
assessment or any other assessment, the assessment must be increased
accordingly.

Finance Bill
Schedule 33 — Annual tax on enveloped dwellings: returns, enquiries, assessments and appeals
Part 7 — Reviews and appeals
428

Tribunal determinations
51
The determination of the tribunal in relation to any proceedings under this
Part of this Schedule is to be final and conclusive except as otherwise
provided in—
(a)
sections 9 to 14 of the Tribunals, Courts and Enforcement Act 2007, or
5
(b)
this Part of this Act.
Payment of tax where appeal has been determined
52    (1)
On the determination of an appeal under paragraph 35 any tax overpaid
must be repaid.
      (2)
On the determination of an appeal under paragraph 35, section 163
10
(payment of tax) has effect in relation to any relevant tax as if—
(a)
the tax were payable in accordance with an assessment under
paragraph 22 issued on the date on which HMRC issues to the
appellant a notice of the total amount payable in accordance with the
determination, and
15
(b)
there had been no appeal against that assessment.
      (3)
The reference in sub-paragraph (2) to “relevant tax” is to any tax payable in
accordance with the determination, so far as it is tax—
(a)
the payment of which had been postponed, or
(b)
which would not have been charged by the amendment or
20
assessment if there had been no appeal.
Payment of tax where there is a further appeal
53    (1)
Where a party to an appeal to the tribunal under paragraph 35 makes a
further appeal, tax is to be payable or repayable in accordance with the
determination of the tribunal or court (as the case may be), even though the
25
further appeal is pending.
      (2)
But if the amount charged by the assessment is altered by the order or
judgment of the Upper Tribunal or court, then—
(a)
if too much tax has been paid, the amount overpaid must be
refunded, with any interest allowed by the order or judgment, and
30
(b)
if too little tax has been charged, the amount undercharged is due
and payable at the end of the 30 days beginning with the date on
which HMRC issue to the other party a notice of the total amount
payable in accordance with the order or judgment.
References to “the tribunal”
35
54    (1)
In this Part of this Schedule “the tribunal” means—
(a)
the First-tier Tribunal, or
(b)
where determined by or under Tribunal Procedure Rules, the Upper
Tribunal.
      (2)
Sub-paragraph (1) does not apply so far as sub-paragraph (3) requires
40
otherwise.