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84 Delivery and service of documents | |
(1) A notice or other document to be served under this Part on a person may be | |
delivered to him or left at his usual or last known place of abode. | |
(2) A notice or other document to be given, served or delivered under this Part | |
may be served by post. | 5 |
(3) For the purposes of section 7 of the Interpretation Act 1978 (c. 30) (general | |
provisions as to service by post) any such notice or other document to be given | |
or delivered to, or served on, any person by the Inland Revenue is properly | |
addressed if it is addressed to that person— | |
(a) in the case of an individual, at his usual or last known place of residence | 10 |
or his place of business; | |
(b) in the case of a company— | |
(i) at its principal place of business, | |
(ii) if a liquidator has been appointed, at his address for the | |
purposes of the liquidation, or | 15 |
(iii) at any place prescribed by regulations made by the Inland | |
Revenue. | |
Liability for and payment of tax | |
85 Liability for tax | |
(1) The purchaser is liable to pay the tax in respect of a chargeable transaction. | 20 |
(2) As to the liability of purchasers acting jointly see— | |
section 103(2)(c) (joint purchasers); | |
Part 2 of Schedule 15 (partners); and | |
paragraph 5 of Schedule 16 (trustees). | |
86 Payment of tax | 25 |
(1) Tax payable in respect of a land transaction must be paid at the same time that | |
a land transaction return is made in respect of the transaction. | |
(2) Tax payable as a result of the withdrawal of relief under— | |
(a) Part 1 of Schedule 7 (group relief), | |
(b) Part 2 of that Schedule (reconstruction or acquisition relief), or | 30 |
(c) Schedule 8 (charities relief), | |
must be paid at the same time that a return is made in respect of the withdrawal | |
(see section 81). | |
(3) Tax payable as a result of the amendment of a return must be paid forthwith | |
or, if the amendment is made before the filing date for the return, not later than | 35 |
that date. | |
(4) Tax payable in accordance with a determination or assessment by the Inland | |
Revenue must be paid within 30 days after the determination or assessment is | |
issued. | |
(5) The above provisions are subject to— | 40 |
(a) section 90 (application to defer payment of tax in case of contingent or | |
uncertain consideration), and | |
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(b) paragraphs 39 and 40 of Schedule 10 (postponement of payment | |
pending determination of appeal). | |
(6) This section does not affect the date from which interest is payable (as to which, | |
see section 87). | |
87 Interest on unpaid tax | 5 |
(1) Interest is payable on the amount of any unpaid tax from the end of the period | |
of 30 days after the relevant date until the tax is paid. | |
(2) The Inland Revenue may by regulations amend subsection (1) so as to make | |
interest run from the end of such shorter period after the relevant date as may | |
be prescribed or, if the regulations so provide, from that date. | 10 |
(3) For the purposes of this section “the relevant date” is— | |
(a) in the case of an amount payable because relief is withdrawn under— | |
(i) Part 1 of Schedule 7 (group relief), | |
(ii) Part 2 of that Schedule (reconstruction or acquisition relief), or | |
(iii) Schedule 8 (charities relief), | 15 |
the date of the disqualifying event; | |
(b) in the case of a deferred payment under section 90, the date when the | |
deferred payment is due; | |
(c) in any other case, the effective date of the transaction. | |
(4) In subsection (3)(a) “the disqualifying event” means— | 20 |
(a) in relation to the withdrawal of group relief, the purchaser ceasing to | |
be a member of the same group as the vendor within the meaning of | |
Part 1 of Schedule 7); | |
(b) in relation to the withdrawal of reconstruction or acquisition relief, the | |
change of control of the acquiring company mentioned in paragraph | 25 |
9(1)(a) of that Schedule or, as the case may be, the event mentioned in | |
paragraph11(1)(a) or (2)(a) of that Schedule; | |
(c) in relation to the withdrawal of charities relief, a disqualifying event as | |
defined in paragraph 2(3) of Schedule 8. | |
(5) Subsection (3)(c) applies in a case within section 51 (contingent, uncertain or | 30 |
unascertained consideration) if payment is not deferred under section 90, with | |
the result that interest on any tax payable under section 80 (adjustment where | |
contingency ceases or consideration is ascertained) runs from the effective date | |
of the transaction. | |
(6) If an amount is lodged with the Inland Revenue in respect of the tax, the | 35 |
amount on which interest is payable is reduced by that amount. | |
(7) Interest is calculated at the rate applicable under section 178 of the Finance Act | |
1989 (c. 26) (power of Treasury to prescribe rates of interest). | |
88 Interest on penalties | |
A penalty under this Part shall carry interest at the rate applicable under | 40 |
section 178 of the Finance Act 1989 from the date it is determined until | |
payment. | |
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89 Interest on repayment of tax overpaid etc | |
(1) A repayment by the Inland Revenue to which this section applies shall be made | |
with interest at the rate applicable under section 178 of the Finance Act 1989 | |
(c. 26) for the period between the relevant time (as defined below) and the date | |
when the order for repayment is issued. | 5 |
(2) This section applies to— | |
(a) any repayment of tax, and | |
(b) any repayment of a penalty under this Part. | |
In that case the relevant time is the date on which the payment of tax or penalty | |
was made. | 10 |
(3) This section also applies to a repayment by the Inland Revenue of an amount | |
lodged with them in respect of the tax payable in respect of a transaction. | |
In that case the relevant time is the date on which the amount was lodged with | |
them. | |
(4) No interest is payable under this section in respect of a payment made in | 15 |
consequence of an order or judgment of a court having power to allow interest | |
on the payment. | |
(5) Interest paid to any person under this section is not income of that person for | |
any tax purposes. | |
90 Application to defer payment in case of contingent or uncertain consideration | 20 |
(1) The purchaser may apply to the Inland Revenue to defer payment of tax in a | |
case where the amount payable depends on the amount or value of chargeable | |
consideration that— | |
(a) at the effective date of the transaction is contingent or uncertain, and | |
(b) falls to be paid or provided on one or more future dates of which at least | 25 |
one falls, or may fall, more than 18 months after the effective date of the | |
transaction. | |
(2) The Inland Revenue may make provision by regulations about the making of | |
such an application, the circumstances in which an application may be | |
accepted and the effect of its being accepted. | 30 |
(3) The regulations may in particular— | |
(a) specify when an application is to be made; | |
(b) impose requirements as to the form and contents of an application; | |
(c) require the applicant to provide such information as the Inland | |
Revenue may reasonably require for the purposes of determining | 35 |
whether to accept an application; | |
(d) specify the grounds on which an application may be refused; | |
(e) specify the procedure for reaching a decision on the application and | |
provide for an appeal against a refusal or failure to accept it; | |
(f) provide for the effect of accepting an application; | 40 |
(g) require the purchaser to make a return or further return, and to make | |
such payments or further payments of tax as may be specified, in such | |
circumstances as may be specified. | |
(4) An application under this section does not affect the purchaser’s obligations as | |
regards payment of tax in respect of chargeable consideration that has already | 45 |
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been paid or provided or is not contingent and whose amount is ascertained or | |
ascertainable at the time the application is made. | |
91 Collection and recovery of tax etc | |
(1) The provisions of Schedule 12 have effect with respect to the collection and | |
recovery of tax. | 5 |
In that Schedule— | |
Part 1 contains general provisions, and | |
Part 2 relates to court proceedings. | |
(2) The provisions of that Schedule have effect in relation to the collection and | |
recovery of any unpaid amount by way of— | 10 |
(a) penalty under this Part, or | |
(b) interest under this Part (on unpaid tax or penalty), | |
as if it were an amount of unpaid tax. | |
92 Payment by cheque | |
For the purposes of this Part where— | 15 |
(a) payment to the Inland Revenue is made by cheque, and | |
(b) the cheque is paid on its first presentation to the banker on whom it is | |
drawn, | |
the payment is treated as made on the day on which the cheque was received | |
by the Inland Revenue. | 20 |
Compliance | |
93 Information powers | |
(1) Schedule 13 has effect with respect to the powers of the Inland Revenue to call | |
for documents and information for the purposes of stamp duty land tax. | |
(2) In that Schedule— | 25 |
Part 1 confers power on an authorised officer to call for documents of | |
information from the taxpayer; | |
Part 2 confers power on an authorised officer to call for documents from | |
a third party; | |
Part 3 confers power on an authorised officer to call for the papers of tax | 30 |
accountant; | |
Part 4 imposes restrictions on the powers under Parts 1 to 3; | |
Part 5 confers powers of Board to call for documents or information; | |
Part 6 provides for an order of a judicial authority for delivery of | |
documents; | 35 |
Part 7 provides for entry with a warrant to obtain evidence of an offence; | |
Part 8 relates to falsification etc of documents. | |
(3) A person who is required by a notice under Part 1, 2 or 3 of Schedule 13 to | |
deliver a document or to provide information, or to make a document available | |
for inspection, and who fails to comply with the notice is liable to a penalty not | 40 |
exceeding £300. | |
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(4) If the failure continues after a penalty has been imposed under subsection (3), | |
he is liable to a further penalty or penalties not exceeding £60 for each day on | |
which the failure continues after the day on which the penalty under that | |
subsection was imposed (but excluding any day for which a penalty under this | |
subsection has already been imposed). | 5 |
(5) No penalty shall be imposed under subsection (3) or (4) in respect of a failure | |
at any time after the failure has been remedied. | |
(6) A person who is required by a notice under Part 1, 2 or 3 of Schedule 13 to | |
deliver a document or to provide information, or to make a document available | |
for inspection, and who fraudulently or negligently delivers, provides or | 10 |
makes available any incorrect document or information is liable to a penalty | |
not exceeding £3,000. | |
94 Power to inspect premises | |
(1) If for the purposes of this Part the Board authorise an officer of theirs to inspect | |
any property for the purpose of ascertaining its market value, or any other | 15 |
matter relevant for the purposes of this Part, the person having custody or | |
possession of the property shall permit the officer so authorised to inspect it at | |
such reasonable times as the Board may consider necessary. | |
(2) A person who wilfully delays or obstructs an officer of the Board acting in | |
pursuance of this section commits an offence and is liable on summary | 20 |
conviction to a fine not exceeding level 1 on the standard scale. | |
95 Offence of fraudulent evasion of tax | |
(1) A person commits an offence if he is knowingly concerned in the fraudulent | |
evasion of tax by him or any other person. | |
(2) A person guilty of an offence under this section is liable— | 25 |
(a) on summary conviction to imprisonment for a term not exceeding six | |
months or a fine not exceeding the statutory maximum, or both; | |
(b) on conviction on indictment, to imprisonment for a term not exceeding | |
seven years or a fine, or both. | |
96 Penalty for assisting in preparation of incorrect return etc | 30 |
A person who assists in or induces the preparation or delivery of any | |
information, return or other document that— | |
(a) he knows will be, or is likely to be, used for any purpose of tax, and | |
(b) he knows to be incorrect, | |
is liable to a penalty not exceeding £3,000. | 35 |
97 Power to allow further time and reasonable excuse for failure | |
(1) For the purposes of this Part a person shall be deemed not to have failed to do | |
anything required to be done within a limited time if he did it within such | |
further time, if any, as the Inland Revenue may allow. | |
(2) Where a person had a reasonable excuse for not doing anything required to be | 40 |
done for the purposes of this Part of this Act— | |
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(a) he shall be deemed not to have failed to do it unless the excuse ceased, | |
and | |
(b) after the excuse ceased, he shall be deemed not to have failed to do it if | |
he did it without unreasonably delay after the excuse had ceased. | |
98 Admissibility of evidence not affected by offer of settlement etc | 5 |
(1) Statements made or documents produced by or on behalf of a person are not | |
inadmissible in proceedings to which this section applies by reason only that it | |
has been drawn to his attention— | |
(a) that where serious tax fraud has been committed the Board may accept | |
a money settlement and that the Board will accept such a settlement, | 10 |
and will not pursue a criminal prosecution, if he makes a full confession | |
of all tax irregularities, or | |
(b) that the extent to which he is helpful and freely and fully volunteers | |
information is a factor that will be taken into account in determining the | |
amount of any penalty, | 15 |
and that he was or may have been induced thereby to make the statements or | |
produce the documents. | |
(2) The proceedings to which this section applies are— | |
(a) any criminal proceedings against the person in question for any form | |
of fraudulent conduct in connection with or in relation to tax; | 20 |
(b) any proceedings against him for the recovery of any tax due from him; | |
(c) any proceedings for a penalty or on appeal against the determination of | |
a penalty. | |
99 General provisions about penalties | |
(1) Schedule 14 has effect with respect to the determination of penalties under this | 25 |
Part and related appeals. | |
(2) The Board may in their discretion mitigate a penalty under this Part, or stay or | |
compound any proceedings for the recovery of such a penalty. | |
They may also, after judgment, further mitigate or entirely remit the penalty. | |
(3) Nothing in the provisions of this Part relating to penalties affects any criminal | 30 |
proceedings for an offence. | |
Application of provisions | |
100 Companies | |
(1) In this Part “company”, except as otherwise expressly provided, means any | |
body corporate or unincorporated association, but does not include a | 35 |
partnership. | |
(2) Everything to be done by a company under this Part shall be done by the | |
company acting through— | |
(a) the proper officer of the company, or | |
(b) another person having for the time being having the express, implied | 40 |
or apparent authority of the company to act on its behalf for the | |
purpose. | |
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Paragraph (b) does not apply where a liquidator has been appointed for the | |
company. | |
(3) Service on a company of any document under or in pursuance of this Part may | |
be effected by serving it on the proper officer. | |
(4) Tax due from a company that— | 5 |
(a) is not a body corporate, or | |
(b) is incorporated under the law of a country or territory outside the | |
United Kingdom, | |
may, without prejudice to any other method of recovery, be recovered from the | |
proper officer of the company. | 10 |
(5) The proper officer may retain out of any money coming into his hands on | |
behalf of the company sufficient sums to pay that tax and, so far as he is not so | |
reimbursed, he is entitled to be indemnified by the company in respect of the | |
liability imposed on him. | |
(6) For the purposes of this Part— | 15 |
(a) the proper officer of a body corporate is the secretary, or person acting | |
as secretary, of the company, and | |
(b) the proper officer of an unincorporated association, or of a body | |
corporate that does not have a proper officer within paragraph (a), is | |
the treasurer, or person acting as treasurer, of the company. | 20 |
This subsection does not apply if a liquidator or administrator has been | |
appointed for the company. | |
(7) If a liquidator or administrator has been appointed for the company, then, for | |
the purposes of this Part— | |
(a) the liquidator or, as the case may be, the administrator is the proper | 25 |
officer, and | |
(b) if two or more persons are appointed to act jointly or concurrently as | |
the administrator of the company, the proper officer is— | |
(i) such one of them as is specified in a notice given to the Inland | |
Revenue by those persons for the purposes of this section, or | 30 |
(ii) where the Inland Revenue is not so notified, such one or more | |
of those persons as the Inland Revenue may designate as the | |
proper officer for those purposes. | |
101 Unit trust schemes | |
(1) This Part (with the exception of the provisions mentioned in subsection (7) | 35 |
below) applies in relation to a unit trust scheme as if— | |
(a) the trustees were a company, and | |
(b) the rights of the unit holders were shares in the company. | |
(2) Each of the parts of an umbrella scheme is regarded for the purposes of this | |
Part as a separate unit trust scheme and the scheme as a whole is not so | 40 |
regarded. | |
(3) An “umbrella scheme” means a unit trust scheme— | |
(a) that provides arrangements for separate pooling of the contributions of | |
participants and the profits or income out of which payments are to be | |
made for them, and | 45 |
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