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Finance Bill
Schedule 10 — Stamp duty land tax: returns, enquiries, assessments and appeals
Part 1 — Land transaction returns

    187

 

              (a)             the transaction to which it relates, and

              (b)             the period for complying with the notice (which must not be less

than 30 days from the date of issue of the notice).

          (3)      If the purchaser does not comply with the notice within the specified period,

the Inland Revenue may apply to the General or Special Commissioners for

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an order imposing a daily penalty.

          (4)      On such an application the Commissioners may direct that the purchaser

shall be liable to a penalty or penalties not exceeding £60 for each day on

which the failure continues after the day on which he is notified of the

direction.

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          (5)      This paragraph does not affect, and is not affected by, any penalty under

paragraph 3 or 4 (flat-rate or tax-related penalty for failure to deliver return).

Amendment of return by purchaser

  6       (1)      The purchaser may amend a land transaction return given by him by notice

to the Inland Revenue.

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          (2)      The notice must be in such form, and contain such information, as the Inland

Revenue may require.

          (3)      Except as otherwise provided, an amendment may not be made more than

twelve months after the filing date.

Correction of return by Revenue

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  7       (1)      The Inland Revenue may amend a land transaction return so as to correct

obvious errors or omissions in the return (whether errors of principle,

arithmetical mistakes or otherwise).

          (2)      A correction under this paragraph is made by notice to the purchaser.

          (3)      No such correction may be made more than nine months after—

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              (a)             the day on which the return was delivered, or

              (b)             if the correction is required in consequence of an amendment under

paragraph 6, the day on which that amendment was made.

          (4)      A correction under this paragraph is of no effect if the purchaser—

              (a)             amends the return so as to reject the correction, or

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              (b)             after the end of the period within which he may amend the return,

but within three months from the date of issue of the notice of

correction, gives notice rejecting the correction.

          (5)      Notice under sub-paragraph (4)(b) must be given to the officer of the Board

by whom notice of the correction was given.

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Penalty for incorrect or uncorrected return

  8       (1)      A purchaser who—

              (a)             fraudulently or negligently delivers in respect of a chargeable

transaction a land transaction return which is incorrect, or

              (b)             discovers that a land transaction return delivered by him in respect

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of a chargeable transaction (neither fraudulently nor negligently) is

incorrect and does not remedy the error without unreasonable delay,

                   is liable to a tax-related penalty.

 

 

Finance Bill
Schedule 10 — Stamp duty land tax: returns, enquiries, assessments and appeals
Part 2 — Duty to keep and preserve records

    188

 

          (2)      The penalty is an amount not exceeding the amount of tax understated, that

is, the difference between—

              (a)             the amount of tax chargeable in respect of the transaction, and

              (b)             the amount that would have been chargeable on the basis of the

return delivered.

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Part 2

Duty to keep and preserve records

Duty to keep and preserve records

  9       (1)      A purchaser who is required to deliver a land transaction return must—

              (a)             keep such records as may be needed to enable him to deliver a

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correct and complete return, and

              (b)             preserve those records in accordance with this paragraph.

          (2)      The records must be preserved for six years after the effective date of the

transaction and until any later date on which—

              (a)             an enquiry into the return is completed, or

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              (b)             if there is no enquiry, the Inland Revenue no longer have power to

enquire into the return.

          (3)      The records required to be kept and preserved under this paragraph

include—

              (a)             relevant instruments relating to the transaction, in particular, any

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contract or conveyance, and any supporting maps, plans or similar

documents;

              (b)             records of relevant payments, receipts and financial arrangements.

Preservation of information instead of original records

  10      (1)      The duty under paragraph 9 to preserve records may be satisfied by the

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preservation of the information contained in them.

          (2)      Where information is so preserved a copy of any document forming part of

the records is admissible in evidence in any proceedings before the

Commissioners to the same extent as the records themselves.

Penalty for failure to keep and preserve records

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  11      (1)      A person who fails to comply with paragraph 9 in relation to a transaction is

liable to a penalty not exceeding £3,000, subject to the following exception.

          (2)      No penalty is incurred if the Inland Revenue are satisfied that any facts that

they reasonably require to be proved, and that would have been proved by

the records, are proved by other documentary evidence provided to them.

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Finance Bill
Schedule 10 — Stamp duty land tax: returns, enquiries, assessments and appeals
Part 3 — Enquiry into return

    189

 

Part 3

Enquiry into return

Notice of enquiry

  12      (1)      The Inland Revenue may enquire into a land transaction return if they give

notice of their intention to do so—

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              (a)             to the purchaser,

              (b)             before the end of the enquiry period.

          (2)      The enquiry period is the period of nine months—

              (a)             after the filing date, if the return was delivered on or before that date;

              (b)             after the date on which the return was delivered, if the return was

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delivered after the filing date;

              (c)             after the date on which the amendment was made, if the return is

amended under paragraph 6 (amendment by purchaser).

          (3)      A return that has been the subject of one notice of enquiry may not be the

subject of another, except one given in consequence of an amendment (or

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another amendment) of the return under paragraph 6.

Scope of enquiry

  13      (1)      An enquiry extends to anything contained in the return, or required to be

contained in the return, that relates—

              (a)             to the question whether tax is chargeable in respect of the

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transaction, or

              (b)             to the amount of tax so chargeable.

                   This is subject to the following exception.

          (2)      If the notice of enquiry is given as a result of an amendment of the return

under paragraph 6 (amendment by purchaser)—

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              (a)             at a time when it is no longer possible to give notice of enquiry under

paragraph 12, or

              (b)             after an enquiry into the return has been completed,

                   the enquiry into the return is limited to matters to which the amendment

relates or that are affected by the amendment.

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Notice to produce documents etc for purposes of enquiry

  14      (1)      If the Inland Revenue give notice of enquiry into a land transaction return,

they may by notice in writing require the purchaser—

              (a)             to produce to them such documents in his possession or power, and

              (b)             to provide them with such information, in such form,

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                   as they may reasonably require for the purposes of the enquiry.

          (2)      A notice under this paragraph (which may be given at the same time as the

notice of enquiry) must specify the time (which must not be less than 30

days) within which the purchaser is to comply with it.

          (3)      In complying with a notice under this paragraph copies of documents may

40

be produced instead of originals, but—

              (a)             the copies must be photographic or other facsimiles, and

 

 

Finance Bill
Schedule 10 — Stamp duty land tax: returns, enquiries, assessments and appeals
Part 3 — Enquiry into return

    190

 

              (b)             the Inland Revenue may by notice require the original to be

produced for inspection.

                   A notice under paragraph (b) must specify the time (which must not be less

than 30 days) within which the purchaser is to comply with it.

          (4)      The Inland Revenue may take copies of, or make extracts from, any

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documents produced to them under this paragraph.

          (5)      A notice under this paragraph does not oblige a purchaser to produce

documents or provide information relating to the conduct of—

              (a)             any pending appeal by him, or

              (b)             any pending referral to the Special Commissioners under paragraph

10

19 to which he is a party.

Appeal against notice to produce documents etc

  15      (1)      An appeal may be brought against a requirement imposed by a notice under

paragraph 14 to produce documents or provide information.

          (2)      Notice of appeal must be given—

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              (a)             in writing,

              (b)             within 30 days after the issue of the notice appealed against,

              (c)             to the officer of the Board by whom that notice was given.

          (3)      An appeal under this paragraph shall be heard and determined in the same

way as an appeal against an assessment.

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          (4)      On an appeal under this paragraph the Commissioners—

              (a)             shall set aside the notice so far as it requires the production of

documents, or the provision of information, that appears to them not

reasonably required for the purposes of the enquiry, and

              (b)             shall confirm the notice so far as it requires the production or

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documents, or the provision of information, that appears to them

reasonably required for the purposes of the enquiry.

          (5)      A notice that is confirmed by the Commissioners (or so far as it is confirmed)

has effect as if the period specified in it for complying was 30 days from the

determination of the appeal.

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          (6)      The decision of the Commissioners on an appeal under this paragraph is

final.

Penalty for failure to produce documents etc

  16      (1)      A person who fails to comply with a notice under paragraph 14 (notice to

produce documents etc for purposes of enquiry) is liable—

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              (a)             to a penalty of £50, and

              (b)             if the failure continues after a penalty is imposed under paragraph

(a) above, to a further penalty or penalties not exceeding the amount

specified in sub-paragraph (2) below for each day on which the

failure continues.

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          (2)      The amount referred to in sub-paragraph (1)(b) is—

              (a)             £30 if the penalty is determined by an officer of the Board, and

              (b)             £150 if the penalty is determined by the court.

 

 

Finance Bill
Schedule 10 — Stamp duty land tax: returns, enquiries, assessments and appeals
Part 3 — Enquiry into return

    191

 

          (3)      No penalty shall be imposed under this paragraph in respect of a failure at

any time after the failure has been remedied.

Amendment of self-assessment during enquiry to prevent loss of tax

  17      (1)      If at a time when an enquiry is in progress into a land transaction return the

Inland Revenue form the opinion—

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              (a)             that the amount stated in the self-assessment contained in the return

as the amount of tax payable is insufficient, and

              (b)             that unless the assessment is immediately amended there is likely to

be a loss of tax to the Crown,

                   they may by notice in writing to the purchaser amend the assessment to

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make good the deficiency.

          (2)      In the case of an enquiry that under paragraph 13(2) is limited to matters

arising from an amendment of the return, sub-paragraph (1) above applies

only so far as the deficiency is attributable to the amendment.

          (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—

              (a)             beginning with the day on which notice of enquiry is given, and

              (b)             ending with the day on which the enquiry is completed.

Amendment of return by taxpayer during enquiry

  18      (1)      This paragraph applies if a return is amended under paragraph 6

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(amendment by purchaser) at a time when an enquiry is in progress into the

return.

          (2)      The amendment does not restrict the scope of the enquiry but may be taken

into account (together with any matters arising) in the enquiry.

          (3)      So far as the amendment affects the amount stated in the self-assessment

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included in the return as the amount of tax payable, it does not take effect

while the enquiry is in progress and—

              (a)             if the Inland Revenue state in the closure notice that they have taken

the amendments into account and that—

                    (i)                   the amendment has been taken into account in formulating

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the amendments contained in the notice, or

                    (ii)                  their conclusion is that the amendment is incorrect,

                              the amendment shall not take effect;

              (b)             otherwise, the amendment takes effect when the closure notice is

issued.

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          (4)      For the purposes of this paragraph the period during which an enquiry is in

progress is the whole of the period—

              (a)             beginning with the day on which notice of enquiry is given, and

              (b)             ending with the day on which the enquiry is completed.

Referral of questions to Special Commissioners during enquiry

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  19      (1)      At any time when an enquiry is in progress into a land transaction return

any question arising in connection with the subject-matter of the enquiry

may be referred to the Special Commissioners for their determination.

          (2)      Notice of referral must be given—

 

 

Finance Bill
Schedule 10 — Stamp duty land tax: returns, enquiries, assessments and appeals
Part 3 — Enquiry into return

    192

 

              (a)             jointly by the purchaser and the Inland Revenue,

              (b)             in writing,

              (c)             to the Special Commissioners.

          (3)      The notice of referral must specify the question or questions being referred.

          (4)      More than one notice of referral may be given under this paragraph in

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relation to an enquiry.

          (5)      For the purposes of this paragraph the period during which an enquiry is in

progress is the whole of the period—

              (a)             beginning with the day on which the notice of enquiry was given,

and

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              (b)             ending with the day on which the enquiry is completed.

Withdrawal of notice of referral

  20      (1)      The Inland Revenue or the purchaser may withdraw a notice of referral

under paragraph 19 by notice in accordance with this paragraph.

          (2)      Notice of withdrawal must be given—

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              (a)             in writing,

              (b)             to the other party to the referral and to the Special Commissioners,

              (c)             before the first hearing by the Special Commissioners in relation to

the referral.

Effect of referral on enquiry

20

  21      (1)      While proceedings on a referral under paragraph 19 are in progress in

relation to an enquiry—

              (a)             no closure notice shall be given in relation to the enquiry, and

              (b)             no application may be made for a direction to give such a notice.

          (2)      For the purposes of this paragraph proceedings on a referral are in progress

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where—

              (a)             notice of referral has been given,

              (b)             the notice has not been withdrawn, and

              (c)             the questions referred have not been finally determined.

          (3)      For the purposes of sub-paragraph (2)(c) a question referred is finally

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determined when—

              (a)             it has been determined by the Special Commissioners, and

              (b)             there is no further possibility of the determination being varied or set

aside (disregarding any power to grant permission to appeal out of

time).

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Effect of determination

  22      (1)      The determination of a question referred to the Special Commissioners

under paragraph 19 is binding on the parties to the referral in the same way,

and to the same extent, as a decision on a preliminary issue in an appeal.

          (2)      The determination shall be taken into account by the Inland Revenue—

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              (a)             in reaching their conclusions on the enquiry, and

              (b)             in formulating any amendments of the return required to give effect

to those conclusions.

 

 

Finance Bill
Schedule 10 — Stamp duty land tax: returns, enquiries, assessments and appeals
Part 4 — Revenue determination if no return delivered

    193

 

          (3)      Any right of appeal under paragraph 35 (appeals against assessments) may

not be exercised so as to reopen the question determined except to the extent

(if any) that it could be reopened if it had been determined as a preliminary

issue in that appeal.

Completion of enquiry

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  23      (1)      An enquiry under paragraph 12 is completed when the Inland Revenue by

notice (a “closure notice”) inform the purchaser that they have completed

their enquiries and state their conclusions.

          (2)      A closure notice must either—

              (a)             state that in the opinion of the Inland Revenue no amendment of the

10

return is required, or

              (b)             make the amendments of the return required to give effect to their

conclusions.

          (3)      A closure notice takes effect when it is issued.

Direction to complete enquiry

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  24      (1)      The purchaser may apply to the General or Special Commissioners for a

direction that the Inland Revenue give a closure notice within a specified

period.

          (2)      Any such application shall be heard and determined in the same way as an

appeal.

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          (3)      The Commissioners hearing the application shall give a direction unless

they are satisfied that the Inland Revenue have reasonable grounds for not

giving a closure notice within a specified period.

Part 4

Revenue determination if no return delivered

25

Determination of tax chargeable if no return delivered

  25      (1)      If in the case of a chargeable transaction no land transaction return is

delivered by the filing date, the Inland Revenue may determine to the best

of their information and belief the amount of tax chargeable in respect of the

transaction.

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          (2)      Notice of the determination must be served on the purchaser, stating the

date on which it is issued.

          (3)      No determination under this paragraph may be made more than six years

after the effective date of the transaction.

Determination to have effect as a self-assessment

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  26      (1)      A determination under paragraph 25 has effect for enforcement purposes as

if were a self-assessment by the purchaser.

          (2)      In sub-paragraph (1) “for enforcement purposes” means for the purposes of

the following provisions of this Part of this Act—

              (a)             the provisions of this Schedule providing for tax-related penalties;

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              (b)             section 87 (interest on unpaid tax);

 

 

 
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