(b) no application may be made for a direction to give such a notice.
(2) For the purposes of this paragraph proceedings on a referral are in progress
(a) notice of referral has been given,
(b) the notice has not been withdrawn, and
(c) the questions referred have not been finally determined.
(3) For the purposes of sub-paragraph (2)(c) a question referred is finally
(a) it has been determined by the Special Commissioners, and
(b) there is no further possibility of the determination being varied or set
aside (disregarding any power to grant permission to appeal out of
Effect of determination
22 (1) The determination of a question referred to the Special Commissioners
under paragraph 19 is binding on the parties to the referral in the same way,
and to the same extent, as a decision on a preliminary issue in an appeal.
(2) The determination shall be taken into account by the Inland Revenue—
(a) in reaching their conclusions on the enquiry, and
(b) in formulating any amendments of the return required to give effect
to those conclusions.
(3) Any right of appeal under paragraph 35 (appeals against assessments etc)
may not be exercised so as to reopen the question determined except to the
extent (if any) that it could be reopened if it had been determined as a
preliminary issue in that appeal.
Completion of enquiry
23 (1) An enquiry under paragraph 12 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 amendment of the
return is required, or
(b) make the amendments of the return required to give effect to their
(3) A closure notice takes effect when it is issued.
Direction to complete enquiry
24 (1) The purchaser may apply to the General or Special Commissioners for a
direction that the Inland Revenue give a closure notice within a specified
(2) Any such application shall be heard and determined in the same way as an
(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.
Revenue determination if no return delivered
Determination of tax chargeable if no return delivered
25 (1) If in the case of a chargeable transaction no land transaction return is
delivered by the filing date, the Inland Revenue may make a determination
(a “Revenue determination”) to the best of their information and belief of the
amount of tax chargeable in respect of the transaction.
(2) Notice of the determination must be served on the purchaser, stating the
date on which it is issued.
(3) No Revenue determination may be made more than six years after the
effective date of the transaction.
Determination to have effect as a self-assessment
26 (1) A Revenue determination has effect for enforcement purposes as if were a
self-assessment by the purchaser.
(2) In sub-paragraph (1) “for enforcement purposes” means for the purposes of
the following provisions of this Part of this Act—
(a) the provisions of this Schedule providing for tax-related penalties;
(b) section 87 (interest on unpaid tax);
(c) section 91 and Schedule 12 (collection and recovery of unpaid tax
(3) Nothing in this paragraph affects any liability of the purchaser to a penalty
for failure to deliver a return.
Determination superseded by actual self-assessment
27 (1) If after a Revenue determination has been made the purchaser delivers a
land transaction return in respect of the transaction, the self-assessment
included in that return supersedes the determination.
(2) Sub-paragraph (1) does not apply to a return delivered—
(a) more than six years after the day on which the power to make the
determination first became exercisable, or
(b) more than twelve months after the date of the determination,
whichever is the later.
(a) proceedings have been begun for the recovery of any tax charged by
a Revenue determination, and
(b) before the proceedings are concluded the determination is
superseded by a self-assessment,
the proceedings may be continued as if they were proceedings for the
recovery of so much of the tax charged by the self-assessment as is due and
payable and has not been paid.
Assessment where loss of tax discovered
28 (1) If the Inland Revenue discover as regards a chargeable transaction that—
(a) an amount of tax that ought to have been assessed has not been
(b) an assessment to tax is or has become insufficient, or
(c) relief has been given that is or has become excessive,
they may make an assessment (a “discovery assessment”) in the amount or
further amount that ought in their opinion to be charged in order to make
good to the Crown the loss of tax.
(2) The power to make a discovery assessment in respect of a transaction for
which the purchaser has delivered a return is subject to the restrictions
specified in paragraph 30.
Assessment to recover excessive repayment of tax
29 (1) If an amount of tax has been repaid to any person that ought not to have
been repaid to him, that amount may be assessed and recovered as if it were
(2) Where the repayment was made with interest, the amount assessed and
recovered may include the amount of interest that ought not to have been
(3) The power to make an assessment under this paragraph in respect of a
transaction for which the purchaser has delivered a land transaction return
is subject to the restrictions specified in paragraph 30.
Restrictions on assessment where return delivered
30 (1) If the purchaser has delivered a land transaction return in respect of the
transaction in question, an assessment under paragraph 28 or 29 in respect
of the transaction—
(a) may only be made in the two cases specified in sub-paragraphs (2)
and (3) below, and
(b) may not be made in the circumstances specified in sub-paragraph (5)
(2) The first case is where the situation mentioned in paragraph 28(1) or 29(1) is
attributable to fraudulent or negligent conduct on the part of—
(a) the purchaser,
(b) a person acting on behalf of the purchaser, or
(c) a person who was a partner of the purchaser at the relevant time.
(3) The second case is where the Inland Revenue, at the time they—
(a) ceased to be entitled to give a notice of enquiry into the return, or
(b) completed their enquiries into the return,
could not have been reasonably expected, on the basis of the information
made available to them before that time, to be aware of the situation
mentioned in paragraph 28(1) or 29(1).
(4) For this purpose information is regarded as made available to the Inland
(a) it is contained in a land transaction return made by the purchaser,
(b) it is contained in any documents produced or information provided
to the Inland Revenue for the purposes of an enquiry into any such
(c) it is information the existence of which, and the relevance of which
as regards the situation mentioned in paragraph 28(1) or 29(1)—
(i) could reasonably be expected to be inferred by the Inland
Revenue from information falling within paragraphs (a) or
(b) above, or
(ii) are notified in writing to the Inland Revenue by the
purchaser or a person acting on his behalf.
(5) No assessment may be made if—
(a) the situation mentioned in paragraph 28(1) or 29(1) is attributable to
a mistake in the return as to the basis on which the tax liability ought
to have been computed, and
(b) the return was in fact made on the basis or in accordance with the
practice generally prevailing at the time it was made.
Time limit for assessment
31 (1) The general rule is that no assessment may be made more than six years after
the effective date of the transaction to which it relates.
(2) In a case involving fraud or negligence on the part of—
(a) the purchaser, or
(b) a person acting on behalf of the purchaser, or
(c) a person who was a partner of the purchaser at the relevant time,
an assessment may be made up to 21 years after the effective date of the
transaction to which it relates.
(3) An assessment under paragraph 29 (assessment to recover excessive
repayment of tax) is not out of time—
(a) in a case where notice of enquiry is given into the land transaction
return delivered by the person concerned, if it is made before the
enquiry is completed;
(b) in any case, if it is made within one year after the repayment in
question was made.
(4) Where the purchaser has died—
(a) any assessment on the personal representatives of the deceased must
be made within three years after his death, and
(b) an assessment shall not be made by virtue of sub-paragraph (2) in
respect of a transaction of which the effective date was more than six
years before the death.
(5) Any objection to the making of an assessment on the ground that the time
limit for making it has expired can only be made on an appeal against the
32 (1) Notice of an assessment must be served on the purchaser.
(2) The notice must state—
(a) the tax due,
(b) the date on which the notice is issued, and
(c) the time within which any appeal against the assessment must be
(3) After notice of the assessment has been served on the purchaser, the
assessment may not be altered except in accordance with the express
provisions of this Part of this Act.
(4) Where an officer of the Board has decided to make an assessment to tax, and
has taken all other decisions needed for arriving at the amount of the
assessment, he may entrust to some other officer of the Board responsibility
for completing the assessing procedure, whether by means involving the use
of a computer or otherwise, including responsibility for serving notice of the
Relief in case of excessive assessment
Relief in case of double assessment
33 (1) A person who believes he has been assessed to tax more than once in respect
of the same matter may make a claim for relief under this paragraph.
(2) The claim must be made by notice in writing given to the Inland Revenue.
(3) If on a claim being made the Inland Revenue are satisfied that the person has
been assessed to tax more than once in respect of the same matter, they shall
amend the assessment or assessments concerned or give relief by way of
discharge or repayment of tax or otherwise, to eliminate the double charge.
(4) An appeal against a decision of the Inland Revenue on a claim for relief
under this paragraph may be brought to the Commissioners having
jurisdiction to hear an appeal relating to the assessment, or the later of the
assessments, to which the claim relates.
Relief in case of mistake in return
34 (1) A person who believes he has paid tax under an assessment that was
excessive by reason of some mistake in a land transaction return may make
a claim for relief under this paragraph.
(2) The claim must be made by notice in writing given to the Inland Revenue
not more than six years after the effective date of the transaction.
(3) On receiving the claim the Inland Revenue shall enquire into the matter and
give by way of repayment such relief in respect of the mistake as is
reasonable and just.
(4) No relief shall be given under this paragraph—
(a) in respect of a mistake as to the basis on which the liability of the
claimant ought to have been computed when the return was in fact
made on the basis or in accordance with the practice generally
prevailing at the time when it was made, or
(b) in respect of a mistake in a claim or election included in the return.
(5) In determining a claim under this paragraph the Inland Revenue shall have
regard to all the relevant circumstances of the case.
They shall, in particular, consider whether the granting of relief would result
in amounts being excluded from charge to tax.
(6) On an appeal against the Inland Revenue’s decision on the claim, the Special
Commissioners shall hear and determine the claim in accordance with the
same principles as apply to the determination by the Inland Revenue of
claims under this paragraph.
Appeals against Revenue decisions on tax
Right of appeal
35 (1) An appeal may be brought against—
(a) an amendment of a self-assessment under paragraph 17
(amendment by Revenue during enquiry to prevent loss of tax),
(b) a conclusion stated or amendment made by a closure notice,
(c) a discovery assessment, or
(d) an assessment under paragraph 29 (assessment to recover excessive
(2) The appeal lies to the General or Special Commissioners.
(3) An appeal under sub-paragraph (1)(a) against an amendment of a self-
assessment made while an enquiry is in progress shall not be heard and
determined until the enquiry is completed.
Notice of appeal
36 (1) Notice of an appeal under paragraph 35 must be given—
(a) in writing,
(b) within 30 days after the specified date,
(c) to the relevant officer of the Board.
(2) In relation to an appeal under paragraph 35(1)(a)—
(a) the specified date is the date on which the notice of amendment was
(b) the relevant officer of the Board is the officer by whom the notice of
amendment was given.
(3) In relation to an appeal under paragraph 35(1)(b)—
(a) the specified date is the date on which the closure notice was issued,
(b) the relevant officer of the Board is the officer by whom the closure
notice was given.
(4) In relation to an appeal under paragraph 35(1)(c) or (d)—
(a) the specified date is the date on which the notice of assessment was
(b) the relevant officer of the Board is the officer by whom the notice of
assessment was given.
(5) The notice of appeal must specify the grounds of appeal.
(6) On the hearing of the appeal the Commissioners may allow the appellant to
put forward grounds not specified in the notice, and take them into
consideration, if satisfied that the omission was not deliberate or
Settling of appeals by agreement
37 (1) If, before an appeal under paragraph 35 is determined, the appellant and the
Inland Revenue agree that the decision appealed against—
(a) should be upheld without variation,
(b) should be varied in a particular manner, or
(c) should be discharged or cancelled,
the same consequences shall follow, for all purposes, as would have
followed if, at the time the agreement was come to, the Commissioners had
determined the appeal and had upheld the decision without variation,
varied it in that manner or discharged or cancelled it, as the case may be.
(2) Sub-paragraph (1) does not apply if, within 30 days from the date when the
agreement was come to, the appellant gives notice in writing to the Inland
Revenue that he wishes to withdraw from the agreement.
(3) Where the agreement is not in writing—
(a) sub-paragraphs (1) and (2) do not apply unless the fact that an
agreement was come to, and the terms agreed, are confirmed by
notice in writing given by the Inland Revenue to the appellant or by
the appellant to the Inland Revenue, and
(b) the references in those provisions to the time when the agreement
was come to shall be read as references to the time when the notice
of confirmation was given.
(a) the appellant notifies the Inland Revenue, orally or in writing, that he
does not wish to proceed with the appeal, and
(b) the Inland Revenue do not, within 30 days after that notification, give
the appellant notice in writing indicating that they are unwilling that
the appeal should be withdrawn,
the provisions of sub-paragraphs (1) to (3) have effect as if, at the date of the
appellant’s notification, the appellant and the Inland Revenue had come to
an agreement (orally or in writing, as the case may be) that the decision
under appeal should be upheld without variation.
(5) References in this paragraph to an agreement being come to with an
appellant, and to the giving of notice or notification by or to the appellant,
include references to an agreement being come to, or notice or notification
being given by or to, a person acting on behalf of the appellant in relation to
Recovery of tax not postponed by appeal
38 (1) Where there is an appeal to the Commissioners under paragraph 35, the tax
charged by the amendment or assessment in question remains due and
payable as if there had been no appeal.
(2) Sub-paragraph (1) is subject to—
paragraph 39 (direction by Commissioners postponing payment), and