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(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Determination superseded by actual self-assessment | 5 |
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 | 10 |
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 | 15 |
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superseded by a self-assessment, | |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 | 20 |
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— | 25 |
(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 | 30 |
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. | 35 |
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. | |
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(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 | 5 |
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) | 10 |
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 | 15 |
(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 | 20 |
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, | 25 |
(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)— | 30 |
(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. | 35 |
(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 | 40 |
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— | 45 |
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(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. | 5 |
(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; | 10 |
(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 | 15 |
(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 | 20 |
assessment. | |
Assessment procedure | |
32 (1) Notice of an assessment must be served on the purchaser. | |
(2) The notice must state— | |
(a) the tax due, | 25 |
(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 | 35 |
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 | 40 |
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. | |
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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 | 10 |
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 | 15 |
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 | 20 |
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. | 25 |
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 | 30 |
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 | 40 |
repayment). | |
(2) The appeal lies to the General or Special Commissioners. | |
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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— | 5 |
(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, | 15 |
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 | 20 |
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 | 25 |
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 | 30 |
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 | 35 |
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 | 40 |
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 | |
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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 | 10 |
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. | 15 |
(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. | 20 |
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— | 25 |
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 | 30 |
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 | 35 |
(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 | 40 |
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 | 45 |
case may be, insufficient, he may, by notice in writing given to the other | |
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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 | 15 |
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 | 25 |
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. | 35 |
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 | 40 |
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. | 45 |
(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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