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review of the decision, except in so far as they are relevant to any issue | |
to which the facts or matters not previously considered relate. | |
35 Powers of Commissioners on a review | |
(1) Where the Commissioners— | |
(a) are required in accordance with section 33 to review a decision, or | 5 |
(b) agree to do so on such a request as is mentioned in section 34(4), | |
the following provisions of this section apply. | |
(2) On any such review, the Commissioners may— | |
(a) confirm the decision, | |
(b) withdraw the decision, or | 10 |
(c) vary the decision. | |
(3) Where the Commissioners withdraw or vary the decision, they may also take | |
such further steps (if any) in consequence of the withdrawal or variation as | |
they may consider appropriate. | |
(4) If the Commissioners do not within the permitted period give notice of their | 15 |
determination on the review to the person who required the review or his | |
representative, they shall be taken for the purposes of this Part to have | |
confirmed the decision. | |
(5) For the purposes of subsection (4), the “permitted period” is the period of 45 | |
days beginning with the day on which the review— | 20 |
(a) is required by the person or his representative in accordance with | |
section 33, or | |
(b) is agreed to by the Commissioners as mentioned in section 34(4). | |
Appeals | |
36 Appeals to a tribunal | 25 |
(1) Where the Commissioners— | |
(a) are required in accordance with section 33 to review a decision, or | |
(b) agree to do so on such a request as is mentioned in section 34(4), | |
an appeal lies to an appeal tribunal against any decision by the Commissioners | |
on the review (including any confirmation under section 35(4)). | 30 |
(2) An appeal lies under this section only if the appellant is one of the following | |
persons— | |
(a) the person who required the review in question, | |
(b) where the person who required the review in question did so as | |
representative of another person, that other person, or | 35 |
(c) a representative of a person falling within paragraph (a) or (b). | |
(3) The powers of an appeal tribunal on an appeal under this section include— | |
(a) power to quash or vary a decision; and | |
(b) power to substitute the tribunal’s own decision for any decision so | |
quashed. | 40 |
(4) On an appeal under this section— | |
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(a) the burden of proof as to the matters mentioned in section 25(1) or 26(1) | |
lies on the Commissioners; but | |
(b) it is otherwise for the appellant to show that the grounds on which any | |
such appeal is brought have been established. | |
37 Appeal tribunals | 5 |
(1) Sections 85 and 87 of the Value Added Tax Act 1994 (c. 23) (settling of appeals | |
by agreement and enforcement of decisions of tribunal) have effect as if— | |
(a) any reference to section 83 of that Act included a reference to section 36 | |
above, and | |
(b) any reference to VAT included a reference to any relevant tax or duty. | 10 |
(2) The provision that may be made by rules under paragraph 9 of Schedule 12 to | |
the Value Added Tax Act 1994 (rules of procedure for tribunals) includes | |
provision for costs awarded against an appellant on an appeal by virtue of this | |
Part to be recoverable as if the amount awarded were an amount of customs | |
duty which the appellant is required to pay. | 15 |
Evidence | |
38 Admissibility of certain statements and documents | |
(1) Statements made or documents produced by or on behalf of a person are not | |
inadmissible in— | |
(a) any criminal proceedings against that person in respect of any offence | 20 |
in connection with or in relation to any relevant tax or duty, or | |
(b) any proceedings against that person for the recovery of any sum due | |
from him in connection with or in relation to any relevant tax or duty, | |
by reason only that any of the matters specified in subsection (2) has been | |
drawn to his attention and that he was, or may have been, induced by that | 25 |
matter having been brought to his attention to make the statements or produce | |
the documents. | |
(2) The matters mentioned in subsection (1) are— | |
(a) that the Commissioners have power, in relation to any relevant tax or | |
duty, to demand by means of a written notice an amount by way of a | 30 |
civil penalty, instead of instituting criminal proceedings; | |
(b) that it is the Commissioners’ practice, without being able to give an | |
undertaking as to whether they will make such a demand in any case, | |
to be influenced in determining whether to make such a demand by the | |
fact (where it is the case) that a person has made a full confession of any | 35 |
dishonest conduct to which he has been a party and has given full | |
facilities for an investigation; | |
(c) that the Commissioners or, on appeal, an appeal tribunal have power | |
to reduce a penalty under section 25, as provided in subsection (1) of | |
section 29; and | 40 |
(d) that, in determining the extent of such a reduction in the case of any | |
person, the Commissioners or tribunal will have regard to the extent of | |
the co-operation which he has given to the Commissioners in their | |
investigation. | |
(3) References in this section to a relevant tax or duty do not include a reference to | 45 |
customs duty of a preferential tariff country. | |
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Miscellaneous and supplementary | |
39 Service of notices | |
Any notice to be given to any person for the purposes of this Part may be given | |
by sending it by post in a letter addressed to that person or his representative | |
at the last or usual residence or place of business of that person or | 5 |
representative. | |
40 Penalties not to be deducted for income tax or corporation tax purposes | |
In section 827 of the Taxes Act 1988 (no deduction for penalties etc) after | |
subsection (1D) insert— | |
“(1E) Where a person is liable to make a payment by way of a penalty under | 10 |
section 25 or 26 of the Finance Act 2003 (evasion of, or contravention of | |
relevant rule relating to, certain taxes and duties under the | |
management of the Commissioners of Customs and Excise etc) the | |
payment shall not be allowed as a deduction in computing any income, | |
profits or losses for any tax purposes.”. | 15 |
41 Regulations and orders | |
(1) Any power conferred on the Treasury by this Part to make regulations or an | |
order includes power— | |
(a) to make different provision for different cases, and | |
(b) to make incidental, consequential, supplemental or transitional | 20 |
provision or savings. | |
(2) Any power conferred on the Treasury by this Part to make regulations or an | |
order shall be exercisable by statutory instrument. | |
(3) Any statutory instrument containing regulations under this Part shall be | |
subject to annulment in pursuance of a resolution of the House of Commons. | 25 |
Part 4 | |
Stamp duty land tax | |
Introduction | |
42 The tax | |
(1) A tax (to be known as “stamp duty land tax”) shall be charged in accordance | 30 |
with this Part on land transactions. | |
(2) The tax is chargeable— | |
(a) whether or not there is any instrument effecting the transaction, | |
(b) if there is such an instrument, whether or not it is executed in the | |
United Kingdom, and | 35 |
(c) whether or not any party to the transaction is present, or resident, in the | |
United Kingdom. | |
(3) The tax is under the care and management of the Commissioners of Inland | |
Revenue (referred to in this Part as “the Board”). | |
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Land transactions | |
43 Land transactions | |
(1) In this Part a “land transaction” means any acquisition of a chargeable interest. | |
As to the meaning of “chargeable interest” see section 48. | |
(2) Except as otherwise provided, this Part applies however the acquisition is | 5 |
effected, whether by act of the parties, by order of a court or other authority, by | |
or under any statutory provision or by operation of law. | |
(3) For the purposes of this Part— | |
(a) the creation of a chargeable interest is— | |
(i) an acquisition by the person becoming entitled to the interest | 10 |
created, and | |
(ii) a disposal by the person whose interest or right is subject to the | |
interest created; | |
(b) the surrender or release of a chargeable interest is— | |
(i) an acquisition of that interest by any person whose interest or | 15 |
right is benefitted or enlarged by the transaction, and | |
(ii) a disposal by the person ceasing to be entitled to that interest; | |
and | |
(c) the variation of a chargeable interest is— | |
(i) an acquisition of a chargeable interest by the person benefitting | 20 |
from the variation, and | |
(ii) a disposal of a chargeable interest by the person whose interest | |
is subject to or limited by the variation. | |
(4) References in this Part to the “purchaser” and “vendor”, in relation to a land | |
transaction, are to the person acquiring and the person disposing of the subject- | 25 |
matter of the transaction. | |
These expressions apply even if there is no consideration given for the | |
transaction. | |
(5) A person is not treated as a purchaser unless he has given consideration for, or | |
is a party to, the transaction. | 30 |
(6) References in this Part to the subject-matter of a land transaction are to the | |
chargeable interest acquired (the “main subject-matter”), together with any | |
interest or right appurtenant or pertaining to it that is acquired with it. | |
44 Contract and conveyance | |
(1) This section applies where a contract for a land transaction is entered into | 35 |
under which the transaction is to be completed by a conveyance. | |
(2) If the transaction is completed without previously having been substantially | |
performed, the contract and the transaction effected on completion are treated | |
as parts of a single land transaction. | |
In this case the effective date of the transaction is the date of completion. | 40 |
(3) If the contract is substantially performed without having been completed, the | |
contract is treated as if it were itself the transaction provided for in the contract. | |
In this case the effective date of the transaction is when the contract is | |
substantially performed. | |
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(4) A contract is “substantially performed” when— | |
(a) the purchaser takes possession of the whole, or substantially the whole, | |
of the subject-matter of the contract, or | |
(b) a substantial amount of the consideration is paid or provided. | |
(5) For the purposes of subsection (4)(a)— | 5 |
(a) a purchaser takes possession if he receives, or becomes entitled to | |
receive, rents and profits, and | |
(b) it is immaterial whether the purchaser takes possession under the | |
contract or under a licence or lease of a temporary character. | |
(6) For the purposes of subsection (4)(b) a substantial amount of the consideration | 10 |
is paid or provided— | |
(a) if none of the consideration is rent, where the whole or substantially the | |
whole of the consideration is paid or provided; | |
(b) if the only consideration is rent, when the first payment of rent is made; | |
(c) if the consideration includes both rent and other consideration, when— | 15 |
(i) the whole or substantially the whole of the consideration other | |
than rent is paid or provided, or | |
(ii) the first payment of rent is made. | |
(7) Where subsection (3) applies and the contract is subsequently completed by a | |
conveyance— | 20 |
(a) both the contract and the transaction effected on completion are | |
notifiable transactions, and | |
(b) tax is chargeable on the latter transaction to the extent (if any) that the | |
amount of tax chargeable on it is greater than the amount of tax | |
chargeable on the contract. | 25 |
(8) Where subsection (3) applies and the contract is (to any extent) afterwards | |
rescinded or annulled, or is for any other reason not carried into effect, the tax | |
paid by virtue of that subsection shall (to that extent) be repaid by the Inland | |
Revenue. | |
Repayment must be claimed by amendment of the land transaction return | 30 |
made in respect of the contract. | |
(9) In this section— | |
(a) references to completion are to completion of the land transaction | |
proposed, between the same parties, in substantial conformity with the | |
contract; and | 35 |
(b) “contract” includes any agreement and “conveyance” includes any | |
instrument. | |
45 Contract and conveyance: effect of transfer of rights | |
(1) This section applies where— | |
(a) a contract for a land transaction (“the original contract”) is entered into | 40 |
under which the transaction is to be completed by a conveyance, and | |
(b) there is an assignment, subsale or other transaction (relating to the | |
whole or part of the subject-matter of the original contract) as a result | |
of which a person other than the original purchaser becomes entitled to | |
call for a conveyance to him. | 45 |
References in the following provisions of this section to a transfer of rights are | |
to any such assignment, subsale or other transaction. | |
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(2) Where this section applies, section 44 (contract and conveyance) has effect in | |
accordance with the following provisions of this section. | |
(3) That section applies as if there were a contract for a land transaction— | |
(a) in relation to which the transferee is the purchaser, and | |
(b) under which the consideration for the transaction is— | 5 |
(i) the consideration under the original contract or so much of it as | |
is referable to the subject-matter of the transfer of rights and | |
remains to be paid or provided, and | |
(ii) the consideration given for the transfer of rights. | |
This does not affect the operation of section 44 in relation to the original | 10 |
contract, except that the references to completion shall be read as including | |
completion by a conveyance to the transferee under the transfer of rights. | |
(4) Where there are successive transfers of rights, subsection (3) applies in relation | |
to each of them. | |
This does not affect the operation of section 44 in relation to a previous transfer | 15 |
of rights, except that the references to completion shall be read as including | |
completion by a conveyance to the transferee under the subsequent transfer of | |
rights. | |
(5) Where a transfer of rights relates to part only of the subject-matter of the | |
original contract, subsection (7)(b) of section 44 (restriction of charge to tax on | 20 |
subsequent conveyance) has effect as if the reference to the amount of tax | |
chargeable on that contract were a reference to an appropriate proportion of | |
that amount. | |
(6) In this section “contract” includes any agreement and “conveyance” includes | |
any instrument. | 25 |
46 Options and rights of pre-emption | |
(1) The acquisition of— | |
(a) an option binding the grantor to enter into a land transaction, or | |
(b) a right of pre-emption preventing the grantor from entering into, or | |
restricting the right of the grantor to enter into, a land transaction, | 30 |
is a land transaction distinct from any land transaction resulting from the | |
exercise of the option or right. | |
They may be “linked transactions” (see section 108). | |
(2) The reference in subsection (1)(a) to an option binding the grantor to enter into | |
a land transaction includes an option requiring the grantor either to enter into | 35 |
a land transaction or to discharge his obligations under the option in some | |
other way. | |
(3) The effective date of the transaction in the case of the acquisition of an option | |
or right such as is mentioned in subsection (1) is when the option or right is | |
acquired (as opposed to when it becomes exercisable). | 40 |
(4) Nothing in this section applies to so much of an option or right of pre-emption | |
as constitutes or forms part of a land transaction apart from this section. | |
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