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Finance Bill
Schedule 10 — Stamp duty land tax: returns, enquiries, assessments and appeals
Part 5 — Revenue assessments

    194

 

              (c)             section 91 and Schedule 12 (collection and recovery of unpaid tax

etc).

          (3)      Nothing in this paragraph affects any liability of the purchaser to a penalty

for failure to deliver a return.

Determination superseded by actual self-assessment

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  27      (1)      If after a determination has been made under paragraph 25 the purchaser

delivers a land transaction return in respect of the transaction, the self-

assessment included in that return supersedes the determination.

          (2)      Sub-paragraph (1) does not apply to a return delivered—

              (a)             more than six years after the day on which the power to make the

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determination first became exercisable, or

              (b)             more than twelve months after the date of the determination,

                   whichever is the later.

          (3)      Where—

              (a)             proceedings have been begun for the recovery of any tax charged by

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a determination under paragraph 25, and

              (b)             before the proceedings are concluded the determination is

superseded by a self-assessment,

                   the proceedings may be continued as if they were proceedings for the

recovery of so much of the tax charged by the self-assessment as is due and

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payable and has not been paid.

Part 5

Revenue assessments

Assessment where loss of tax discovered

  28      (1)      If the Inland Revenue discover as regards a chargeable transaction that—

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              (a)             an amount of tax that ought to have been assessed has not been

assessed, or

              (b)             an assessment to tax is or has become insufficient, or

              (c)             relief has been given that is or has become excessive,

                   they may make an assessment (a “discovery assessment”) in the amount or

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further amount that ought in their opinion to be charged in order to make

good to the Crown the loss of tax.

          (2)      The power to make a discovery assessment in respect of a transaction for

which the purchaser has delivered a return is subject to the restrictions

specified in paragraph 30.

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Assessment to recover excessive repayment of tax

  29      (1)      If an amount of tax has been repaid to any person that ought not to have

been repaid to him, that amount may be assessed and recovered as if it were

unpaid tax.

          (2)      Where the repayment was made with interest, the amount assessed and

40

recovered may include the amount of interest that ought not to have been

paid.

 

 

Finance Bill
Schedule 10 — Stamp duty land tax: returns, enquiries, assessments and appeals
Part 5 — Revenue assessments

    195

 

          (3)      The power to make an assessment under this paragraph in respect of a

transaction for which the purchaser has delivered a land transaction return

is subject to the restrictions specified in paragraph 30.

Restrictions on assessment where return delivered

  30      (1)      If the purchaser has delivered a land transaction return in respect of the

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transaction in question, an assessment under paragraph 28 or 29 in respect

of the transaction—

              (a)             may only be made in the two cases specified in sub-paragraph (2)

and (3) below, and

              (b)             may not be made in the circumstances specified in sub-paragraph (5)

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below.

          (2)      The first case is where the situation mentioned in paragraph 28(1) or 29(1) is

attributable to fraudulent or negligent conduct on the part of—

              (a)             the purchaser,

              (b)             a person acting on behalf of the purchaser, or

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              (c)             a person who was a partner of the purchaser at the relevant time.

          (3)      The second case is where the Inland Revenue, at the time they—

              (a)             ceased to be entitled to give a notice of enquiry into the return, or

              (b)             completed their enquiries into the return,

                   could not have been reasonably expected, on the basis of the information

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made available to them before that time, to be aware of the situation

mentioned in paragraph 28(1) or 29(1).

          (4)      For this purpose information is regarded as made available to the Inland

Revenue if—

              (a)             it is contained in a land transaction return made by the purchaser,

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              (b)             it is contained in any documents produced or information provided

to the Inland Revenue for the purposes of an enquiry into any such

return, or

              (c)             it is information the existence of which, and the relevance of which

as regards the situation mentioned in paragraph 28(1) or 29(1)—

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                    (i)                   could reasonably be expected to be inferred by the Inland

Revenue from information falling within paragraphs (a) or

(b) above, or

                    (ii)                  are notified in writing to the Inland Revenue by the

purchaser or a person acting on his behalf.

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          (5)      No assessment may be made if—

              (a)             the situation mentioned in paragraph 28(1) or 29(1) is attributable to

a mistake in the return as to the basis on which the tax liability ought

to have been computed, and

              (b)             the return was in fact made on the basis or in accordance with the

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practice generally prevailing at the time it was made.

Time limit for assessment

  31      (1)      The general rule is that no assessment may be made more than six years after

the effective date of the transaction to which it relates.

          (2)      In a case involving fraud or negligence on the part of—

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Finance Bill
Schedule 10 — Stamp duty land tax: returns, enquiries, assessments and appeals
Part 6 — Relief in case of excessive assessment

    196

 

              (a)             the purchaser, or

              (b)             a person acting on behalf of the purchaser, or

              (c)             a person who was a partner of the purchaser at the relevant time,

                   an assessment may be made up to 21 years after the effective date of the

transaction to which it relates.

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          (3)      An assessment under paragraph 29 (assessment to recover excessive

repayment of tax) is not out of time—

              (a)             in a case where notice of enquiry is given into the land transaction

return delivered by the person concerned, if it is made before the

enquiry is completed;

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              (b)             in any case, if it is made within one year after the repayment in

question was made.

          (4)      Where the purchaser has died—

              (a)             any assessment on the personal representatives of the deceased must

be made within three years after his death, and

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              (b)             an assessment shall not be made by virtue of sub-paragraph (2) in

respect of a transaction of which the effective date was more than six

years before the death.

          (5)      Any objection to the making of an assessment on the ground that the time

limit for making it has expired can only be made on an appeal against the

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assessment.

Assessment procedure

  32      (1)      Notice of an assessment must be served on the purchaser.

          (2)      The notice must state—

              (a)             the tax due,

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              (b)             the date on which the notice is issued, and

              (c)             the time within which any appeal against the assessment must be

made.

          (3)      After notice of the assessment has been served on the purchaser, the

assessment may not be altered except in accordance with the express

30

provisions of this Part of this Act.

          (4)      Where an officer of the Board has decided to make an assessment to tax, and

has taken all other decisions needed for arriving at the amount of the

assessment, he may entrust to some other officer of the Board responsibility

for completing the assessing procedure, whether by means involving the use

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of a computer or otherwise, including responsibility for serving notice of the

assessment.

Part 6

Relief in case of excessive assessment

Relief in case of double assessment

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  33      (1)      A person who believes he has been assessed to tax more than once in respect

of the same matter may make a claim for relief under this paragraph.

          (2)      The claim must be made by notice in writing given to the Inland Revenue.

 

 

Finance Bill
Schedule 10 — Stamp duty land tax: returns, enquiries, assessments and appeals
Part 7 — Appeals against revenue decisions on tax

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          (3)      If on a claim being made the Inland Revenue are satisfied that the person has

been assessed to tax more than once in respect of the same matter, they shall

amend the assessment or assessments concerned or give relief by way of

discharge or repayment of tax or otherwise, to eliminate the double charge.

          (4)      An appeal against a decision of the Inland Revenue on a claim for relief

5

under this paragraph may be brought to the Commissioners having

jurisdiction to hear an appeal relating to the assessment, or the later of the

assessments, to which the claim relates.

Relief in case of mistake in return

  34      (1)      A person who believes he has paid tax under an assessment that was

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excessive by reason of some mistake in a land transaction return may make

a claim for relief under this paragraph.

          (2)      The claim must be made by notice in writing given to the Inland Revenue

not more than six years after the effective date of the transaction.

          (3)      On receiving the claim the Inland Revenue shall enquire into the matter and

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give by way of repayment such relief in respect of the mistake as is

reasonable and just.

          (4)      No relief shall be given under this paragraph—

              (a)             in respect of a mistake as to the basis on which the liability of the

claimant ought to have been computed when the return was in fact

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made on the basis or in accordance with the practice generally

prevailing at the time when it was made, or

              (b)             in respect of a mistake in a claim or election included in the return.

          (5)      In determining a claim under this paragraph the Inland Revenue shall have

regard to all the relevant circumstances of the case.

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                   They shall, in particular, consider whether the granting of relief would result

in amounts being excluded from charge to tax.

          (6)      On an appeal against the Inland Revenue’s decision on the claim, the Special

Commissioners shall hear and determine the claim in accordance with the

same principles as apply to the determination by the Inland Revenue of

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claims under this paragraph.

Part 7

Appeals against revenue decisions on tax

Right of appeal

  35      (1)      An appeal may be brought against—

35

              (a)             an amendment of a self-assessment under paragraph 17

(amendment by Revenue during enquiry to prevent loss of tax),

              (b)             a conclusion stated or amendment made by a closure notice, or

              (c)             a discovery assessment, or

              (d)             an assessment under paragraph 29 (assessment to recover excessive

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repayment).

          (2)      The appeal lies to the General or Special Commissioners.

 

 

Finance Bill
Schedule 10 — Stamp duty land tax: returns, enquiries, assessments and appeals
Part 7 — Appeals against revenue decisions on tax

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          (3)      An appeal under sub-paragraph (1)(a) against an amendment of a self-

assessment made while an enquiry is in progress shall not be heard and

determined until the enquiry is completed.

Notice of appeal

  36      (1)      Notice of an appeal under paragraph 35 must be given—

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              (a)             in writing

              (b)             within 30 days after the specified date,

              (c)             to the relevant officer of the Board.

          (2)      In relation to an appeal under paragraph 35(1)(a)—

              (a)             the specified date is the date on which the notice of amendment was

10

issued, and

              (b)             the relevant officer of the Board is the officer by whom the notice of

amendment was given.

          (3)      In relation to an appeal under paragraph 35(1)(b)—

              (a)             the specified date is the date on which the closure notice was issued,

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and

              (b)             the relevant officer of the Board is the officer by whom the closure

notice was given.

          (4)      In relation to an appeal under paragraph 35(1)(c) or (d)—

              (a)             the specified date is the date on which the notice of assessment was

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issued, and

              (b)             the relevant officer of the Board is the officer by whom the notice of

assessment was given.

          (5)      The notice of appeal must specify the grounds of appeal.

          (6)      On the hearing of the appeal the Commissioners may allow the appellant to

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put forward grounds not specified in the notice, and take them into

consideration, if satisfied that the omission was not deliberate or

unreasonable.

Settling of appeals by agreement

  37      (1)      If, before an appeal under paragraph 35 is determined, the appellant and the

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Inland Revenue agree that the decision appealed against—

              (a)             should be upheld without variation,

              (b)             should be varied in a particular manner, or

              (c)             should be discharged or cancelled,

                   the same consequences shall follow, for all purposes, as would have

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followed if, at the time the agreement was come to, the Commissioners had

determined the appeal and had upheld the decision without variation,

varied it in that manner or discharged or cancelled it, as the case may be.

          (2)      Sub-paragraph (1) does not apply if, within 30 days from the date when the

agreement was come to, the appellant gives notice in writing to the Inland

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Revenue that he wishes to withdraw from the agreement.

          (3)      Where the agreement is not in writing—

              (a)             sub-paragraphs (1) and (2) do not apply unless the fact that an

agreement was come to, and the terms agreed, are confirmed by

 

 

Finance Bill
Schedule 10 — Stamp duty land tax: returns, enquiries, assessments and appeals
Part 7 — Appeals against revenue decisions on tax

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notice in writing given by the Inland Revenue to the appellant or by

the appellant to the Inland Revenue, and

              (b)             the references in those provisions to the time when the agreement

was come to shall be read as references to the time when the notice

of confirmation was given.

5

          (4)      Where—

              (a)             the appellant notifies the Inland Revenue, orally or in writing, that he

does not wish to proceed with the appeal, and

              (b)             the Inland Revenue do not, within 30 days after that notification, give

the appellant notice in writing indicating that they are unwilling that

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the appeal should be withdrawn,

                   the provisions of sub-paragraphs (1) to (3) have effect as if, at the date of the

appellant’s notification, the appellant and the Inland Revenue had come to

an agreement (orally or in writing, as the case may be) that the decision

under appeal should be upheld without variation.

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          (5)      References in this paragraph to an agreement being come to with an

appellant, and to the giving of notice or notification by or to the appellant,

include references to an agreement being come to, or notice or notification

being given by or to, a person acting on behalf of the appellant in relation to

the appeal.

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Recovery of tax not postponed by appeal

  38      (1)      Where there is an appeal to the Commissioners under paragraph 35, the tax

charged by the amendment or assessment in question remains due and

payable as if there had been no appeal.

          (2)      Sub-paragraph (1) is subject to—

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               paragraph 39 (direction by Commissioners postponing payment), and

               paragraph 40 (agreement to postpone payment).

Direction by Commissioners to postpone payment

  39      (1)      If the appellant has grounds for believing that he is overcharged to tax by the

decision appealed against, he may by notice in writing apply to the

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Commissioners for a direction that payment of an amount of tax shall be

postponed pending the determination of the appeal.

          (2)      The notice must—

              (a)             be given to the relevant officer of the Board within 30 days after the

specified date, and

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              (b)             state the amount by which the appellant believes himself to be

overcharged to tax, and his 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 he is overcharged to tax by the

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decision appealed against.

          (4)      If, after any determination on such an application of the amount of tax the

payment of which should be postponed, there is a change in the

circumstances of the case as a result of which either party has grounds for

believing that the amount so determined has become excessive or, as the

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case may be, insufficient, he may, by notice in writing given to the other

 

 

Finance Bill
Schedule 10 — Stamp duty land tax: returns, enquiries, assessments and appeals
Part 7 — Appeals against revenue decisions on tax

    200

 

party at any time before the determination of the appeal, apply to the

Commissioners for a further determination of that amount.

          (5)      An application under this paragraph shall be heard and determined by the

Commissioners in the same way as an appeal.

                   The fact that any such application has been heard and determined by any

5

Commissioners does not preclude them from hearing and determining the

appeal or any further application under this paragraph.

          (6)      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 to the

Commissioners, having regard to the representations made and any

10

evidence adduced, that there are reasonable grounds for believing that the

appellant is overcharged.

          (7)      Where an application is made under this paragraph, the date on which any

tax of which payment is not postponed is due and payable shall be

determined as if the tax were charged by an amendment or assessment of

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which notice was issued on the date on which the application was

determined and against which there was no appeal.

          (8)      On the determination of the appeal—

              (a)             the date on which any tax payable in accordance with that

determination is due and payable shall, so far as it is tax the payment

20

of which had been postponed, or which would not have been

charged by the amendment or assessment if there had been no

appeal, be determined as if the tax were charged by an amendment

or assessment—

                    (i)                   of which notice was issued on the date on which the Inland

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Revenue issues to the appellant a notice of the total amount

payable in accordance with the determination, and

                    (ii)                  against which there had been no appeal, and

              (b)             any tax overpaid shall be repaid.

Agreement to postpone payment of tax

30

  40      (1)      If the appellant and the relevant officer of the Board agree that payment of

an amount of tax should be postponed pending the determination of the

appeal, the same consequences shall follow, for all purposes, as would have

followed if, at the time the agreement was come to, the Commissioners had

made a direction to the same effect.

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                   This is without prejudice to the making of a further agreement or of a further

direction.

          (2)      Where the agreement is not in writing—

              (a)             sub-paragraph (1) does not apply unless the fact that an agreement

was come to, and the terms agreed, are confirmed by notice in

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writing given by the relevant officer of the Board to the appellant or

by the appellant to that officer, and

              (b)             the reference in that provision to the time when the agreement was

come to shall be read as a reference to the time when notice of

confirmation was given.

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          (3)      References in this paragraph to an agreement being come to with an

appellant, and to the giving of notice to or by the appellant, include

 

 

 
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