Finance Act 2003 (c. 14)

(The document as of February, 2008)

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Withdrawal of notice of referral

13 (1) The Inland Revenue or the purchaser may withdraw a notice of referral under paragraph 12 by notice in accordance with this paragraph.

(2) Notice of withdrawal must be given--

(a) in writing,

(b) to the other party to the referral and to the Special Commissioners,

Effect of referral on enquiry

14 (1) While proceedings on a referral under paragraph 12 are in progress in relation to an enquiry--

(a) no closure notice shall be given in relation to the enquiry, and

(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 where--

(a) notice of referral has been given,

(b) the notice has not been withdrawn, and

(3) For the purposes of sub-paragraph (2)(c) a question referred is finally determined when--

(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 time).

Effect of determination

15 (1) The determination of a question referred to the Special Commissioners under paragraph 12 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 self-certificate required to give effect to those conclusions.

(3) Any right of appeal under paragraph 35 of Schedule 10 (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

16 (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 state whether in the opinion of the Inland Revenue the self-certificate was correct, and if their opinion is that it was not whether in their opinion the transaction to which it relates was chargeable or notifiable.

Direction to complete enquiry

17 (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 period.

(2) Any such application shall be heard and determined in the same 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.

Section 91

SCHEDULE 12 Stamp duty land tax: collection and recovery of tax

Part 1 General

Issue of tax demands and receipts

1 (1) Where tax is due and payable, a collector may make demand of the sum charged from the person liable to pay it.

(2) On payment of the tax, the collector shall if so requested give a receipt.

Recovery of tax by distraint

2 (1) In England and Wales or Northern Ireland, if a person neglects or refuses to pay the sum charged, upon demand made by the collector, the collector may distrain upon the goods and chattels of the person charged ("the person in default").

(2) For the purposes of levying such distress a justice of the peace, on being satisfied by information on oath that there is reasonable ground for believing that a person is neglecting or refusing to pay a sum charged, may issue a warrant in writing authorising a collector to break open, in the daytime, any house or premises, calling to his assistance any constable.

Every such constable shall, when so required, assist the collector in the execution of the warrant and in levying such distress in the house or premises.

(3) A levy or warrant to break open must be executed by, or under the direction of, and in the presence of, the collector.

(4) A distress levied by the collector shall be kept for five days, at the costs and charges of the person in default.

(5) If the person in default does not pay the sum due, together with the costs and charges, the distress shall be appraised by one or more independent persons appointed by the collector, and shall be sold by public auction by the collector for payment of the sum due and all costs and charges.

Any surplus resulting from the distress, after the deduction of the costs and charges and of the sum due, shall be restored to the owner of the goods distrained.

(6) The Treasury may by regulations make provision with respect to--

(a) the fees chargeable on or in connection with the levying of distress, and

(b) the costs and charges recoverable where distress has been levied.

Recovery of tax by diligence in Scotland

3 (1) In Scotland, where any tax is due and has not been paid, the sheriff, on an application by the collector accompanied by a certificate by the collector--

(a) stating that none of the persons specified in the application has paid the tax to him,

(b) stating that the collector has demanded payment under paragraph 1 from each such person of the amount due by him,

(d) specifying the amount due and unpaid by each such person,

shall grant a summary warrant in a form prescribed by Act of Sederunt authorising the recovery, by any of the diligences mentioned in sub-paragraph (2), of the amount remaining due and unpaid.

(2) The diligences referred to in sub-paragraph (1) are--

(a) an attachment;

(b) an earnings arrestment;

(3) Subject to sub-paragraph (4), the sheriff officer's fees, together with the outlays necessarily incurred by him, in connection with the execution of a summary warrant are chargeable against the debtor.

(4) No fee is chargeable by the sheriff officer against the debtor for collecting, and accounting to the collector for, sums paid to him by the debtor in respect of the amount owing.

Part 2 Court proceedings

Civil proceedings in magistrates' court or court of summary jurisdiction

4 (1) An amount not exceeding £2,000 due and payable by way of tax is in England and Wales or Northern Ireland recoverable summarily as a civil debt in proceedings brought in the name of the collector.

(2) All or any of the sums recoverable under this paragraph that are--

(a) due from any one person, and

(b) payable to any one collector,

may be included in the same complaint, summons or other document required to be laid before or issued by justices.

Each such document shall, as respects each such sum, be construed as a separate document and its invalidity as respects any one such sum does not affect its validity as respects any other such sum.

(3) Proceedings under this paragraph in England and Wales may be brought at any time within one year from the time when the matter complained of arose.

(4) In sub-paragraph (1) the expression "recoverable summarily as a civil debt" in relation to proceedings in Northern Ireland means recoverable by proceedings under Article 62 of the Magistrates' Courts (Northern Ireland) Order 1981 (S.I. 1981/1675 (N.I. 26)).

(5) The Treasury may by order increase the sum specified in sub-paragraph (1).

Proceedings in county court or sheriff court

5 (1) Tax due and payable may be sued for and recovered from the person charged as a debt due to the Crown by proceedings brought in the name of a collector--

(a) in a county court, or

(b) in a sheriff court.

(2) An officer of the Board who is authorised by the Board to do so may address the court in any proceedings under this paragraph in England and Wales or Scotland.

(3) In Northern Ireland--

(a) the reference in sub-paragraph (1) to a county court is to a county court held for a division under the County Courts (Northern Ireland) Order 1980 (S.I. 1980/397 (N.I. 3));

(b) proceedings may not be brought under this paragraph if the amount exceeds the limit specified in Article 10(1) of that Order;

(d) sections 21 and 42(2) of the Interpretation Act (Northern Ireland) 1954 (c. 33 (N.I.)) apply as if any reference in those provisions to an enactment included this paragraph.

Proceedings in High Court or Court of Session

6 Tax may be sued for and recovered from the person charged--

(a) as a debt due to the Crown, or

(b) by any other means by which a debt of record or otherwise due to the Crown may be sued for and recovered,

by proceedings in the High Court or, in Scotland, in the Court of Session sitting as the Court of Exchequer.

Evidence of unpaid tax

7 (1) A certificate of an officer of the Board--

(a) that tax is due and payable, and

(b) that to the best of his knowledge and belief payment of the tax has not been made,

is sufficient evidence that the sum mentioned in the certificate is unpaid and is due to the Crown.

(2) A document purporting to be such a certificate shall be deemed to be such a certificate unless the contrary is proved.

Section 93

SCHEDULE 13 Stamp duty land tax: information powers

Part 1 Power of authorised officer to call for documents or information from taxpayer

Notice requiring taxpayer to deliver documents or provide information

1 (1) An authorised officer of the Board may by notice in writing require a person--

(a) to deliver to him such documents as are in that person's possession or power and (in the officer's reasonable opinion) contain, or may contain, information relevant to--

(i) any tax liability to which that person is or may be subject, or

(ii) the amount of any such liability, or

(b) to provide him with such information as he may reasonably require as being relevant to, or to the amount of, any such liability.

(2) An "authorised officer of the Board" means an officer of the Board authorised for the purposes of this Part of this Schedule.

(3) Before a person is given a notice under this paragraph he must be given a reasonable opportunity to deliver the documents or provide the information in question.

No application for consent under paragraph 2 shall be made unless he has been given that opportunity.

Requirement of consent of General or Special Commissioner

2 (1) The consent of a General or Special Commissioner is required for the giving of a notice under paragraph 1.

(2) Consent shall not be given unless the Commissioner is satisfied that in all the circumstances the officer is justified in proceeding under that paragraph.

(3) A Commissioner who has given such consent shall not take part in, or be present at, any proceedings on, or related to, any appeal brought by the person to whom the notice applies if the Commissioner has reason to believe that any of the required information is likely to be adduced in evidence in those proceedings.

The "required information" means any document or information that was the subject of the notice with respect to which the Commissioner gave his consent.

Contents of notice under this Part

3 (1) A notice under paragraph 1 must--

(a) specify or describe the documents or information to which it relates, and

(b) require the documents to be delivered, or the information to be provided, within such time as may be specified in the notice.

(2) The period specified for complying with the notice must not be less than 30 days after the date of the notice.

Summary of reasons to be given

4 (1) An officer who gives a notice under paragraph 1 must also give to the person to whom the notice applies a written summary of his reasons for applying for consent to the notice.

(2) This does not require the disclosure of any information--

(a) that would, or might, identify any person who has provided the officer with any information which he took into account in deciding whether to apply for consent, or

(b) that the General or Special Commissioner giving consent under paragraph 2 directs need not be disclosed.

(3) A Commissioner shall not give any such direction unless he is satisfied that the officer has reasonable grounds for believing that disclosure of the information in question would prejudice the assessment or collection of tax.

Power to take copies of documents etc

5 The person to whom documents are delivered, or to whom information is provided, in pursuance of a notice under paragraph 1 may take copies of them or of extracts from them.

Part 2 Power of authorised officer to call for documents from third party

Notice requiring documents to be delivered or made available

6 (1) An authorised officer of the Board may for the purpose of enquiring into the tax liability of any person ("the taxpayer") by notice in writing require any other person--

(a) to deliver to the officer, or

(b) if the person to whom the notice is given so elects, to make available for inspection by a named officer of the Board,

such documents as are in that person's possession or power and (in the officer's reasonable opinion) contain, or may contain, information relevant to any tax liability to which the taxpayer is or may be, or may have been, subject, or the amount of any such liability.

(2) An "authorised officer of the Board" means an officer of the Board authorised for the purposes of this Part of this Schedule.

(3) Before a person is given a notice under this paragraph he must be given a reasonable opportunity to deliver or make available the documents in question.

No application for consent under paragraph 7 shall be made unless he has been given that opportunity.

(4) The persons who may be treated as "the taxpayer" for the purposes of this paragraph include a company that has ceased to exist and an individual who has died.

But a notice in relation to a taxpayer who has died may not be given more than six years after his death.

Requirement of consent of General or Special Commissioner

7 (1) The consent of a General or Special Commissioner is required for the giving of a notice under paragraph 6.

(2) Consent shall not be given unless the Commissioner is satisfied that in all the circumstances the officer is justified in proceeding under that paragraph.

(3) A Commissioner who has given such consent shall not take part in, or be present at, any proceedings on, or related to, any appeal brought by the taxpayer concerned if the Commissioner has reason to believe that any of the documents that were the subject of the notice is likely to be adduced in evidence in those proceedings.

Contents of notice under paragraph 6

8 (1) A notice under paragraph 6 must--

(a) specify or describe the documents to which it relates, and

(b) require the documents to be delivered or made available within such time as may be specified in the notice.

(2) The period specified for complying with the notice must not be less than 30 days after the date of the notice.

(3) Subject to paragraph 11 (power to give notice in respect of unnamed taxpayer or taxpayers), a notice under this paragraph must name the taxpayer to whom it relates.

Copy of notice to be given to taxpayer

9 (1) Where a notice is given to a person under this paragraph, the officer shall give a copy of the notice to the taxpayer to whom it relates.

(2) This paragraph does not apply if, on application by the officer, a General or Special Commissioner directs that it shall not apply.

(3) Such a direction shall only be given if the Commissioner is satisfied that the officer has reasonable grounds for suspecting the taxpayer of fraud.

Summary of reasons to be given

10 (1) An officer who gives a notice under paragraph 6 must also give to the taxpayer concerned a written summary of his reasons for applying for consent to the notice.

(2) This does not require the disclosure of any information--

(a) that would, or might, identify any person who has provided the officer with any information which he took into account in deciding whether to apply for consent, or

(b) that the General or Special Commissioner giving consent under paragraph 7 directs need not be disclosed.

(3) A Commissioner shall not give such a direction unless he is satisfied that the officer has reasonable grounds for believing that disclosure of the information in question would prejudice the assessment or collection of tax.

(4) This paragraph does not apply if under paragraph 9(2) a copy of the notice need not be given to the taxpayer.

Power to give notice relating to unnamed taxpayer or taxpayers

11 (1) If, on an application made by an officer of the Board and authorised by an order of the Board, a Special Commissioner gives his consent, the officer may give such a notice as is mentioned in paragraph 6 without naming the taxpayer to whom the notice relates.

(2) Consent shall not be given unless the Commissioner is satisfied--

(a) that the notice relates--

(i) to a taxpayer whose identity is not known to the officer, or

(ii) to a class of taxpayers whose individual identities are not so known,

(b) that there are reasonable grounds for believing that the taxpayer, or any of the class of taxpayers, to whom the notice relates may have failed or may fail to comply with any provision of this Part of this Act,

(c) that any such failure is likely to have led or to lead to serious prejudice to the proper assessment or collection of tax, and

(d) that the information that is likely to be contained in the documents to which the notice relates is not readily available from another source.

(3) Before a person is given a notice under this paragraph he must be given a reasonable opportunity to deliver or make available the documents in question.

No application for consent under sub-paragraph (1) shall be made unless he has been given that opportunity.

(4) A person to whom there is given a notice under this paragraph may, by notice in writing given to the officer within 30 days after the date of the notice, object to it on the ground that it would be onerous for him to comply with it.

(5) If the matter is not resolved by agreement it shall be referred to the Special Commissioners who may confirm, vary or cancel the notice.

Contents of notice under paragraph 11

12 (1) A notice under paragraph 11 must--

(a) specify or describe the documents to which it relates, and

(b) require the documents to be delivered or made available within such time as may be specified in the notice.

(2) The period specified for complying with the notice must not be less than 30 days after the date of the notice.

Power to take copies of documents etc

13 The person to whom documents are delivered or made available in pursuance of a notice under this Part of this Schedule may take copies of them or of extracts from them.

Part 3 Power to call for papers of tax accountant

Power to call for papers of tax accountant

14 (1) Where a person who has stood in relation to others as a tax accountant--

(a) is convicted of an offence in relation to tax by or before a court in the United Kingdom, or

(b) has a penalty imposed on him under section 96 (assisting in preparation of incorrect return etc),

an authorised officer of the Board may by notice in writing require that person to deliver to him such documents as are in his possession or power and (in the officer's reasonable opinion) contain information relevant to any tax liability to which any client of his is or has been, or may be or have been, subject, or to the amount of any such liability.

(2) An "authorised officer of the Board" means an officer of the Board authorised for the purposes of this Part of this Schedule.

(3) Before a person is given a notice under this paragraph he must be given a reasonable opportunity to deliver the documents in question.

No application for consent under paragraph 16 shall be made unless he has been given that opportunity.

When notice may be given

15 (1) No notice under paragraph 14 may be given for so long as an appeal is pending against the conviction or penalty.

(2) For the purposes of sub-paragraph (1)--

(a) an appeal is treated as pending (where one is competent but has not been brought) until the expiration of the time for bringing it or, in the case of a conviction in Scotland, until the expiration of 28 days from the date of conviction; and

(b) references to an appeal include a further appeal, but in relation to the imposition of a penalty do not include an appeal against the amount of the penalty.

(3) No notice may be given under paragraph 14 by reference to a person's conviction or the imposition on him of a penalty after the end of the period of twelve months beginning with the date on which the power to give such a notice was first exercisable in his case by virtue of that conviction or penalty.

Requirement of consent of appropriate judicial authority

16 (1) The consent of the appropriate judicial authority is required for the giving of a notice under paragraph 14.

(2) Consent shall not be given unless that authority is satisfied that in all the circumstances the officer is justified in proceeding under that paragraph.

(3) The appropriate judicial authority is--

(a) in England and Wales, a circuit judge;

(b) in Scotland, a sheriff;

Contents of notice

17 (1) A notice under paragraph 14 must--

(a) specify or describe the documents to which it relates, and

(b) require the documents to be delivered within such time as may be specified in the notice.

(2) The period specified for complying with the notice must not be less than 30 days after the date of the notice.

Power to take copies of documents etc

18 The officer to whom documents are delivered in pursuance of a notice under paragraph 14 may take copies of them or of extracts from them.

Part 4 Restrictions on powers under Parts 1 to 3

Introduction

19 The provisions of Parts 1 to 3 of this Schedule have effect subject to the following restrictions.

Personal records or journalistic material

20 (1) Parts 1 to 3 of this Schedule do not apply--

(a) to documents that are personal records or journalistic material, or

(b) to information contained in any personal records or journalistic material.

(2) In sub-paragraph (1)--

"personal records" means personal records as defined in section 12 of the Police and Criminal Evidence Act 1984 (c. 60) or, in Northern Ireland, in Article 14 of the Police and Criminal Evidence (Northern Ireland) Order 1989 (S.I. 1989/1341 (N.I. 12)); and
"journalistic material" means journalistic material as defined in section 13 of that Act or, in Northern Ireland, in Article 15 of that Order.

Documents or information relating to pending appeal

21 (1) A notice under Part 1 of this Schedule does not oblige a person to deliver documents or provide information relating to the conduct of any pending appeal by him.

(2) A notice under Part 2 of this Schedule does not oblige a person to deliver or make available documents relating to the conduct of a pending appeal by the taxpayer.

(3) A notice under Part 3 of this Schedule does not oblige a person to deliver documents relating to the conduct of a pending appeal by the client.

(4) An "appeal" here means an appeal relating to tax.

Barristers, advocates and solicitors

22 (1) A notice under Part 2 or 3 of this Schedule may not be given to a barrister, advocate or solicitor by an authorised officer of the Board but only by the Board.

(2) Accordingly, in relation to a barrister, advocate or solicitor, the references in those Parts to an authorised officer of the Board shall be read as references to the Board.

Provision of copies instead of original documents

23 (1) To comply with a notice under Part 1 or 3 of this Schedule, and as an alternative to delivering documents to comply with a notice under Part 2 of this Schedule, copies of documents may be delivered instead of originals.

(2) The copies must be photographic or otherwise by way of facsimile.

(3) If so required by the officer (or, as the case may be, the Board) in the case of any documents specified in the requirement, the originals must be made available for inspection by a named officer of the Board.

(4) Failure to comply with such a requirement counts as failure to comply with the notice.

Documents originating more than six years before date of notice

24 (1) A notice under Part 2 of this Schedule does not oblige a person to deliver or make available a document the whole of which originates more than six years before the date of the notice.

(2) Sub-paragraph (1) does not apply where the notice is so expressed as to exclude the restrictions of that sub-paragraph.

(3) A notice may only be so expressed if--

(a) in the case of a notice given by an authorised officer, the General or Special Commissioner giving consent to the notice has also given approval to the exclusion;

(b) in the case of a notice given by the Board, they have applied to a General or Special Commissioner for, and obtained, that approval.

(4) Approval shall only be given if the Commissioner is satisfied, on application by the officer or the Board, that tax has been, or may have been, lost to the Crown owing to the fraud of the taxpayer.

Documents subject to legal privilege

25 (1) A notice under Part 2 or 3 of this Schedule does not oblige a barrister, advocate or solicitor to deliver or make available, without his client's consent, any document with respect to which a claim to legal privilege could be maintained.

(2) "Legal privilege" here has the same meaning as in paragraph 35 of this Schedule.

Documents belonging to auditor or tax adviser

26 (1) A notice under Part 2 of this Schedule--

(a) does not oblige a person who has been appointed as auditor for the purposes of any enactment to deliver or make available documents that are his property and were created by him or on his behalf for or in connection with the performance of his functions under that enactment, and

(b) does not oblige a tax adviser to deliver or make available documents that are his property and consist of relevant communications (as defined below).

(2) "Relevant communications" means communications between the tax adviser and--

(a) a person in relation to whose tax affairs he has been appointed, or

(b) any other tax adviser of such a person,

the purpose of which is the giving or obtaining of advice about any of those tax affairs.

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