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purchase a house by way of the rent to loan scheme in Part 3 of the Housing | |
(Scotland) Act 1987 (c. 26). | |
(5) The chargeable consideration for such a transaction is equal to the price that, | |
by virtue of section 62 of the Housing (Scotland) Act 1987 (c. 26), would be | |
payable for the house if the person were exercising the right to purchase | 5 |
under section 61 of that Act. | |
Schedule 10 | |
Section 78 | |
Stamp duty land tax: returns, enquiries, assessments and appeals | |
Part 1 | |
Land transaction returns | 10 |
Contents of return | |
1 (1) A land transaction return must— | |
(a) be in the prescribed form, | |
(b) contain the prescribed information, and | |
(c) include a declaration by the purchaser (or each of them) that the | 15 |
return is to the best of his knowledge correct and complete. | |
(2) In sub-paragraph (1) “prescribed” means prescribed by regulations made by | |
the Inland Revenue. | |
(3) The regulations may make different provision for different kinds of return. | |
(4) Regulations under sub-paragraph (1)(b) may require the provision of | 20 |
information corresponding to any of the particulars formerly required | |
under— | |
(a) Schedule 2 to the Finance Act 1931 (c. 28) (requirement to deliver | |
particulars of land transactions in Great Britain), or | |
(b) section 244 of the Finance Act 1994 (c. 9) (corresponding provision | 25 |
for Northern Ireland). | |
(5) The return is treated as containing any information provided by the | |
purchaser for the purpose of completing the return. | |
Meaning of filing date and delivery of return | |
2 (1) References in this Part of this Act to the filing date, in relation to a land | 30 |
transaction return, are to the last day of the period within which the return | |
must be delivered. | |
(2) References in this Part of this Act to the delivery of a land transaction return | |
are to the delivery of a return that— | |
(a) complies with the requirements of paragraph 1(1) (contents of | 35 |
return), and | |
(b) is accompanied by payment of any tax required to accompany the | |
return. | |
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Failure to deliver return: flat-rate penalty | |
3 (1) A person who is required to deliver a land transaction return and fails to do | |
so by the filing date is liable to a flat-rate penalty under this paragraph. | |
He may also be liable to a tax-related penalty under paragraph 4. | |
(2) The penalty is— | 5 |
(a) £100 if the return is delivered within three months after the filing | |
date, and | |
(b) £200 in any other case. | |
Failure to deliver return: tax-related penalty | |
4 (1) A purchaser who is required to deliver a land transaction return in respect | 10 |
of a chargeable transaction and fails to do so within twelve months after the | |
filing date is liable to a tax-related penalty under this paragraph. | |
This is in addition to any flat-rate penalty under paragraph 3. | |
(2) The penalty is an amount not exceeding the amount of tax chargeable in | |
respect of the transaction. | 15 |
Formal notice to deliver return: daily penalty | |
5 (1) If it appears to the Inland Revenue— | |
(a) that a purchaser required to deliver a land transaction return in | |
respect of a chargeable transaction has failed to do so, and | |
(b) that the filing date has now passed, | 20 |
they may issue a notice requiring him to deliver a land transaction return in | |
respect of the transaction. | |
(2) The notice must specify— | |
(a) the transaction to which it relates, and | |
(b) the period for complying with the notice (which must not be less | 25 |
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 | |
an order imposing a daily penalty. | |
(4) On such an application the Commissioners may direct that the purchaser | 30 |
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. | |
(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). | 35 |
Amendment of return by purchaser | |
6 (1) The purchaser may amend a land transaction return given by him by notice | |
to the Inland Revenue. | |
(2) The notice must be in such form, and contain such information, as the Inland | |
Revenue may require. | 40 |
(3) Except as otherwise provided, an amendment may not be made more than | |
twelve months after the filing date. | |
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Correction of return by Revenue | |
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. | 5 |
(3) No such correction may be made more than nine months after— | |
(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— | 10 |
(a) amends the return so as to reject the correction, or | |
(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 | 15 |
by whom notice of the correction was given. | |
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 | 20 |
(b) discovers that a land transaction return delivered by him in respect | |
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. | |
(2) The penalty is an amount not exceeding the amount of tax understated, that | 25 |
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. | |
Part 2 | 30 |
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 | |
correct and complete return, and | 35 |
(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 | |
(b) if there is no enquiry, the Inland Revenue no longer have power to | 40 |
enquire into the return. | |
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(3) The records required to be kept and preserved under this paragraph | |
include— | |
(a) relevant instruments relating to the transaction, in particular, any | |
contract or conveyance, and any supporting maps, plans or similar | |
documents; | 5 |
(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 | |
preservation of the information contained in them. | |
(2) Where information is so preserved a copy of any document forming part of | 10 |
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 | |
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. | 15 |
(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. | |
Part 3 | |
Enquiry into return | 20 |
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 (“notice of enquiry”)— | |
(a) to the purchaser, | |
(b) before the end of the enquiry period. | 25 |
(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 | |
delivered after the filing date; | |
(c) after the date on which the amendment was made, if the return is | 30 |
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 | |
another amendment) of the return under paragraph 6. | |
Scope of enquiry | 35 |
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 | |
transaction, or | |
(b) to the amount of tax so chargeable. | 40 |
This is subject to the following exception. | |
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(2) If the notice of enquiry is given as a result of an amendment of the return | |
under paragraph 6 (amendment by purchaser)— | |
(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, | 5 |
the enquiry into the return is limited to matters to which the amendment | |
relates or that are affected by the amendment. | |
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— | 10 |
(a) to produce to them such documents in his possession or power, and | |
(b) to provide them with such information, in such form, | |
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 | 15 |
days) within which the purchaser is to comply with it. | |
(3) In complying with a notice under this paragraph copies of documents may | |
be produced instead of originals, but— | |
(a) the copies must be photographic or other facsimiles, and | |
(b) the Inland Revenue may by notice require the original to be | 20 |
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 | |
documents produced to them under this paragraph. | 25 |
(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 | |
19 to which he is a party. | 30 |
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— | |
(a) in writing, | 35 |
(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. | |
(4) On an appeal under this paragraph the Commissioners— | 40 |
(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 | |
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(b) shall confirm the notice so far as it requires the production or | |
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 | 5 |
determination of the appeal. | |
(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 | 10 |
produce documents etc for purposes of enquiry) is liable— | |
(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 | 15 |
failure continues. | |
(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. | |
(3) No penalty shall be imposed under this paragraph in respect of a failure at | 20 |
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— | |
(a) that the amount stated in the self-assessment contained in the return | 25 |
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 | |
make good the deficiency. | 30 |
(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 | |
progress is the whole of the period— | 35 |
(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 | |
(amendment by purchaser) at a time when an enquiry is in progress into the | 40 |
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. | |
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(3) So far as the amendment affects the amount stated in the self-assessment | |
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— | 5 |
(i) the amendment has been taken into account in formulating | |
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 | 10 |
issued. | |
(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. | 15 |
Referral of questions to Special Commissioners during enquiry | |
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— | 20 |
(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 | 25 |
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 | 30 |
(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— | 35 |
(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 | 40 |
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 | |
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