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Session 2002 - 03
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Finance Bill
Schedule 38 — Stamp duty land tax: claims not included in returns
567

2003 (c. 14)—
“Schedule 11A
Section 82A

Stamp duty land tax: claims not included in returns
Introductory
1
This Schedule applies to a claim under any provision of this Part
5
other than a claim that is required to be made in, or by amendment
to, a return under this Part.

References in this Schedule to a claim shall be read accordingly.
Making of claims
2     (1)
A claim must be made in such form as the Inland Revenue may
10
determine.
      (2)
The form of claim must provide for a declaration to the effect that
all the particulars given in the form are correctly stated to the best
of the claimant’s information and belief.
      (3)
The form of claim may require—
15
(a)
a statement of the amount of tax that will be required to be
discharged or repaid in order to give effect to the claim;
(b)
such information as is reasonably required for the purpose
of determining whether and, if so, the extent to which the
claim is correct;
20
(c)
the delivery with the claim of such statements and
documents, relating to the information contained in the
claim, as are reasonably required for the purpose
mentioned in paragraph (b).
      (4)
A claim for repayment of tax may not be made unless the claimant
25
has documentary evidence that the tax has been paid.
Duty to keep and preserve records
3     (1)
A person who may wish to make a claim must—
(a)
keep such records as may be needed to enable him to make
a correct and complete claim, and
30
(b)
preserve those records in accordance with this paragraph.
      (2)
The records must be preserved until the latest of the following
times—
(a)
the end of the period of twelve months beginning with day
on which the claim was made;
35
(b)
where there is an enquiry into the claim, or into an
amendment of the claim, the time when the enquiry is
completed;
(c)
where the claim is amended and there is there is no
enquiry into the amendment, the time when the Inland
40
Revenue no longer have power to enquire into the
amendment.
      (3)
The duty under this paragraph to preserve records may be
satisfied by the preservation of the information contained in them.

Finance Bill
Schedule 38 — Stamp duty land tax: claims not included in returns
568

      (4)
Where information is so preserved a copy of any document
forming part of the records is admissible in evidence in any
proceedings before the Commissioners to the same extent as the
records themselves.
      (5)
A person who fails to comply with this paragraph in relation to a
5
claim that he makes is liable to a penalty not exceeding £3,000,
subject to the following exception.
      (6)
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
10
documentary evidence provided to them.
Amendment of claim by claimant
4     (1)
The claimant may amend his claim by notice to the Inland
Revenue.
      (2)
No such amendment may be made—
15
(a)
more than twelve months after the day on which the claim
was made, or
(b)
if the Inland Revenue give notice under paragraph 7
(notice of enquiry), during the period—
(i)
beginning with the day on which notice is given,
20
and
(ii)
ending with the day on which the enquiry under
that paragraph is completed.
Correction of claim by Revenue
5     (1)
The Inland Revenue may by notice to the claimant amend a claim
25
so as to correct obvious errors or omissions in the claim (whether
errors of principle, arithmetical mistakes or otherwise).
      (2)
No such correction may be made—
(a)
more than nine months after the day on which the claim
was made, or
30
(b)
if the Inland Revenue give notice under paragraph 7
(notice of enquiry), during the period—
(i)
beginning with the day on which notice is given,
and
(ii)
ending with the day on which the enquiry under
35
that paragraph is completed.
      (3)
A correction under this paragraph is of no effect if, within three
months from the date of issue of the notice of correction, the
claimant gives notice rejecting the correction.
      (4)
Notice under sub-paragraph (3) must be given to the officer of the
40
Board by whom the notice of correction was given.
Giving effect to claims and amendments
6     (1)
As soon as practicable after a claim is made, or is amended under
paragraph 4 or 5, the Inland Revenue shall give effect to the claim
or amendment by discharge or repayment of tax.
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Finance Bill
Schedule 38 — Stamp duty land tax: claims not included in returns
569

      (2)
Where the Inland Revenue enquire into a claim or amendment—
(a)
sub-paragraph (1) does not apply until a closure notice is
given under paragraph 11 (completion of enquiry), and
then it applies subject to paragraph 13 (giving effect to
amendments under paragraph 11), but
5
(b)
the Inland Revenue may at any time before then give effect
to the claim or amendment, on a provisional basis, to such
extent as they think fit.
Notice of enquiry
7     (1)
The Inland Revenue may enquire into a person’s claim or
10
amendment of a claim if they give him notice of their intention to
do so (“notice of enquiry”) before the end of the period of nine
months after the day on which the claim or amendment was made.
      (2)
A claim or amendment that has been the subject of one notice of
enquiry may not be the subject of another.
15
Notice to produce documents etc for purposes of enquiry
8     (1)
If the Inland Revenue give a person a notice of enquiry, they may
by notice in writing require him—
(a)
to produce to them such documents in his possession or
power, and
20
(b)
to provide them with such information, in such form,

as they may reasonably require for the purposes of the enquiry.
      (2)
A notice given to a person 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 days) within which he is to
25
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
30
be produced for inspection.

A notice under paragraph (b) must specify the time (which must
not be less than 30 days) within which the person is to comply
with it.
      (4)
The Inland Revenue may take copies of, or make extracts from,
35
any documents produced to them under this paragraph.
      (5)
A notice under this paragraph does not oblige a person to produce
documents or provide information relating to the conduct of any
pending appeal by him.
Appeal against notice to produce documents etc
40
9     (1)
An appeal may be brought against a requirement imposed by a
notice under paragraph 8 to produce documents or provide
information.
      (2)
Notice of appeal must be given—
(a)
in writing,
45

Finance Bill
Schedule 38 — Stamp duty land tax: claims not included in returns
570

(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.
5
      (4)
On an appeal under this paragraph the Commissioners—
(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
10
(b)
shall confirm the notice so far as it requires the production
of 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
15
confirmed) has effect as if the period specified in it for complying
was 30 days from the 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
20
10    (1)
A person who fails to comply with a notice under paragraph 8
(notice to 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
25
paragraph (a), to a further penalty or penalties not
exceeding £30 for each day on which the failure continues.
      (2)
No penalty shall be imposed under this paragraph in respect of a
failure at any time after the failure has been remedied.
Completion of enquiry
30
11    (1)
An enquiry under paragraph 7 is completed when the Inland
Revenue by notice (a “closure notice”) inform the purchaser that
they have completed their enquiries and state their conclusions.
      (2)
A closure notice must either—
(a)
state that in the opinion of the Inland Revenue no
35
amendment of the claim is required, or
(b)
if in the Inland Revenue’s opinion the claim is insufficient
or excessive, amend the claim so as to make good or
eliminate the deficiency or excess.

In the case of an enquiry into an amendment of a claim, paragraph
40
(b) applies only so far as the deficiency or excess is attributable to
the amendment.
      (3)
A closure notice takes effect when it is issued.

Finance Bill
Schedule 38 — Stamp duty land tax: claims not included in returns
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Direction to complete enquiry
12    (1)
The claimant may apply to the General or Special Commissioners
for a direction that the Inland Revenue give a closure notice within
a specified period.
      (2)
Any such application shall be heard and determined in the same
5
way as an appeal.
      (3)
The Commissioners hearing the application shall give a direction
unless they are satisfied that the Inland Revenue have reasonable
grounds for not giving a closure notice within a specified period.
Giving effect to amendments under paragraph 11
10
13    (1)
Within 30 days after the date of issue of a notice under paragraph
11(2)(b) (closure notice that amends claim), the Inland Revenue
shall give effect to the amendment by making such adjustment as
may be necessary, whether—
(a)
by way of assessment on the claimant, or
15
(b)
by discharge or repayment of tax.
      (2)
An assessment made under sub-paragraph (1) is not out of time if
it is made within the time mentioned in that sub-paragraph.
Appeals against amendments under paragraph 11
14    (1)
An appeal may be brought against a conclusion stated or
20
amendment made by a closure notice.
      (2)
Notice of the appeal must be given—
(a)
in writing,
(b)
within 30 days after the date on which the closure notice
was issued,
25
(c)
to the officer of the Board by whom the closure notice was
given.
      (3)
The notice of appeal must specify the grounds of appeal.
      (4)
On the hearing of the appeal the Commissioners may allow the
appellant to put forward grounds not specified in the notice, and
30
take them into consideration, if satisfied that the omission was not
deliberate or unreasonable.
      (5)
Paragraph 37 of Schedule 10 (settling of appeals by agreement)
applies in relation to an appeal under this paragraph as it applies
in relation to an appeal under paragraph 35 of that Schedule.
35
      (6)
On an appeal against an amendment made by a closure notice, the
Commissioners may vary the amendment appealed against
whether or not the variation is to the advantage of the appellant.
      (7)
Where any such amendment is varied, whether by the
Commissioners or by the order of a court, paragraph 13 (giving
40
effect to amendments under paragraph 11) applies (with the
necessary modifications) in relation to the variation as it applied
in relation to the amendment.

Finance Bill
Schedule 39 — Stamp duty land tax: application to certain partnership transactions
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Jurisdiction of Commissioners
15    (1)
An appeal against a conclusion stated or amendment made by a
closure notice is to be made to the Special Commissioners if it
relates to a claim made to the Board.
      (2)
Subject to—
5
(a)
sub-paragraph (1),
(b)
paragraph 33(4) of Schedule 10 (appeal against decision on
claim for relief in case of double assessment), and
(c)
any right to elect to bring an appeal before the Special
Commissioners conferred by regulations under Schedule
10
17 (General and Special Commissioners, appeals and other
proceedings),

an appeal under any provision of this Schedule is to be made to the
General Commissioners.”
Schedule 39
15
Section 296

Stamp duty land tax: application to certain partnership transactions
1
In Schedule 15 to the Finance Act 2003 (c. 14) (stamp duty land tax:
partnerships), for Part 3 (transactions excluded from stamp duty land tax)
substitute—
“Part 3
20
Transactions to which special provisions apply
Introduction
9     (1)
This Part of this Schedule applies to certain transactions
involving—
(a)
the transfer of an interest in land to a partnership
25
(paragraph 10),
(b)
the transfer of an interest in a partnership (paragraphs 12,
15, 23 and 24), or
(c)
the transfer of an interest in land from a partnership
(paragraph 16).
30
      (2)
References in this Part of this Schedule to the transfer of an interest
in land include—
(a)
the grant or creation of an interest in land,
(b)
the variation of an interest in land, and
(c)
the surrender, release or renunciation of an interest in land.
35
Transfer of interest in land to a partnership: general
10    (1)
This paragraph applies where—
(a)
a partner transfers an interest in land to the partnership, or
(b)
a person transfers an interest in land to a partnership in
return for an interest in the partnership, or
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Finance Bill
Schedule 39 — Stamp duty land tax: application to certain partnership transactions
573

(c)
a person connected with—
(i)
a partner, or
(ii)
a person who becomes a partner as a result of or in
connection with the transfer,

transfers an interest in land to the partnership.
5

It applies whether the transfer is in connection with the formation
of the partnership or is a transfer to an existing partnership.
      (2)
The chargeable consideration for the transaction shall be taken to
be equal to a proportion of the market value of the interest
transferred.
10
      (3)
That proportion is the total of the other partners’ partnership
shares immediately after the transfer.
      (4)
Paragraph 11 applies (instead of sub-paragraphs (2) and (3)) if the
whole or part of the chargeable consideration for the transaction is
rent.
15
      (5)
Paragraphs 6 to 8 (responsibility of partners) have effect in relation
to a transaction to which this paragraph applies, but the
responsible partners are—
(a)
those who were partners immediately before the transfer
and who remain partners after the transfer, and
20
(b)
any person becoming a partner as a result of, or in
connection with, the transfer.
Transfer of interest in land to a partnership: chargeable consideration including rent
11    (1)
This paragraph applies in relation to a transaction to which
paragraph 10 applies where the whole or part of the chargeable
25
consideration for the transaction is rent.
      (2)
Schedule 5 provides for the calculation of the tax chargeable in
respect of the transaction, subject to the following provisions of
this paragraph.
      (3)
Paragraph 2 of Schedule 5 (calculation of tax chargeable in respect
30
of rent) has effect as if—
(a)
for “the net present value of the rent payable over the term
of the lease” there were substituted “the chargeable
proportion of the net present value of the rent payable over
the term of the lease”, and
35
(b)
for “the net present values of the rent payable over the
terms of all the leases” there were substituted “the
chargeable proportions of the net present values of the rent
payable over the terms of all the leases”.
      (4)
If there is chargeable consideration other than rent, that
40
chargeable consideration shall be taken to be equal to the
chargeable proportion of the market value of the interest
transferred.
      (5)
If there is no chargeable consideration other than rent—
(a)
there shall (despite that) be taken to be chargeable
45
consideration other than rent (in particular for the
purposes of paragraph 9 of Schedule 5), and