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Finance Bill
Part 4 — Stamp duty land tax

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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.

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     (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

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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

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                  (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.

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     (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

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     (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

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           (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

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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—

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           (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

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     (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.

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     (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),

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                         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—

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           (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

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9(1)(a) of that Schedule or, as the case may be, the event mentioned in

paragraph 11(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

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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

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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

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section 178 of the Finance Act 1989 from the date it is determined until

payment.

 

 

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Part 4 — Stamp duty land tax

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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 for

the period between the relevant time (as defined below) and the date when the

order for repayment is issued.

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     (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.

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     (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

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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

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     (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

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one falls, or may fall, more than six 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.

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     (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

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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;

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           (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

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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.

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            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—

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           (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—

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           (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.

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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—

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                    Part 1 confers power on an authorised officer to call for documents or

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 a tax

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accountant;

                    Part 4 imposes restrictions on the powers under Parts 1 to 3;

                    Part 5 confers powers on the Board to call for documents or information;

                    Part 6 provides for an order of a judicial authority for the delivery of

documents;

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                    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

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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).

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     (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

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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

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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

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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—

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           (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

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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.

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 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

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done for the purposes of this Part—

 

 

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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

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     (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,

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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 volunteers information is a

factor that will be taken into account in determining the amount of any

penalty,

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            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;

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           (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

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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

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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

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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

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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—

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           (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.

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     (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—

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           (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.

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            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

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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

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                  (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)

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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

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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

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