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.
(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
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
(iii) at any place prescribed by regulations made by the Inland
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.
(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
(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
(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
(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
(5) The above provisions are subject to—
(a) section 90 (application to defer payment of tax in case of contingent or
uncertain consideration), and
(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
(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.
(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),
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—
(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
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
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
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
section 178 of the Finance Act 1989 from the date it is determined until
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.
(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
(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
(4) No interest is payable under this section in respect of a payment made in
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
(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
(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
one falls, or may fall, more than 18 months after the effective date of the
(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.
(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
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;
(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
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.
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—
(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—
(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
the payment is treated as made on the day on which the cheque was received
by the Inland Revenue.
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—
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
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
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
(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) 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
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
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
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—
(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
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.
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
done for the purposes of this Part of this Act—
(a) he shall be deemed not to have failed to do it unless the excuse ceased,
(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
(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,
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,
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;
(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
99 General provisions about penalties
(1) Schedule 14 has effect with respect to the determination of penalties under this
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
proceedings for an offence.
Application of provisions
(1) In this Part “company”, except as otherwise expressly provided, means any
body corporate or unincorporated association, but does not include a
(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
or apparent authority of the company to act on its behalf for the
Paragraph (b) does not apply where a liquidator has been appointed for the
(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—
(a) is not a body corporate, or
(b) is incorporated under the law of a country or territory outside the
may, without prejudice to any other method of recovery, be recovered from the
proper officer of the company.
(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—
(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.
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
(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
(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)
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
(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