Finance Act 2003 (c. 14)

(The document as of February, 2008)

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(a) a contract for a land transaction under which the transaction is to be completed by a conveyance, or

(b) a transfer of rights (within the meaning of section 45) under such a contract.

In this subsection "contract" includes any agreement and "conveyance" includes any instrument.

(3) The certificate must be either--

(a) a certificate by the Inland Revenue (a "Revenue certificate") that a land transaction return has been delivered in respect of the transaction, or

(b) a certificate by the purchaser (a "self-certificate") that no land transaction return is required in respect of the transaction.

(4) The Inland Revenue may make provision by regulations about Revenue certificates.

The regulations may, in particular--

(a) make provision as to the conditions to be met before a certificate is issued;

(b) prescribe the form and content of the certificate;

(d) provide for the issue of multiple certificates where a return is made relating to more than one transaction.

(5) Schedule 11 makes further provision about self-certificates.

In that Schedule--

Part 1 contains general provisions,
Part 2 imposes a duty to keep and preserve records, and
Part 3 makes provision for enquiries into self-certificates.

(6) The registrar (in Scotland, the Keeper of the Registers of Scotland)--

(a) shall allow the Inland Revenue to inspect any certificates or self-certificates produced to him under this section and in his possession, and

(b) may enter into arrangements for affording the Inland Revenue other information and facilities for verifying that the requirements of this Part have been complied with.

80 Adjustment where contingency ceases or consideration is ascertained

(1) Where section 51 (contingent, uncertain or unascertained consideration) applies in relation to a transaction and--

(a) in the case of contingent consideration, the contingency occurs or it becomes clear that it will not occur, or

(b) in the case of uncertain or unascertained consideration, an amount relevant to the calculation of the consideration, or any instalment of consideration, becomes ascertained,

the following provisions have effect to require or permit reconsideration of how this Part applies to the transaction (and to any transaction in relation to which it is a linked transaction).

(2) If the effect of the new information is that a transaction becomes notifiable or chargeable, or that additional tax is payable in respect of a transaction or that tax is payable where none was payable before--

(a) the purchaser must make a return to the Inland Revenue within 30 days,

(b) the return must contain a self-assessment of the tax chargeable in respect of the transaction on the basis of the information contained in the return,

(c) the tax so chargeable is to be calculated by reference to the rates in force at the effective date of the transaction, and

(d) the return must be accompanied by payment of the tax or additional tax payable.

(3) The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a land transaction return.

(4) If the effect of the new information is that less tax is payable in respect of a transaction than has already been paid, the amount overpaid shall on a claim by the purchaser be repaid together with interest as from the date of payment.

81 Further return where relief withdrawn

(1) Where relief is withdrawn to any extent under--

(a) Part 1 of Schedule 7 (group relief),

(b) Part 2 of that Schedule (reconstruction or acquisition relief), or

the purchaser must deliver a further return before the end of the period of 30 days after the date on which the disqualifying event occurred.

(2) The return must--

(a) include a self-assessment of the amount of tax chargeable, and

(b) be accompanied by payment of the tax chargeable.

(3) The provisions of Schedule 10 (returns, assessments and other matters) apply to a return under this section as they apply to a land transaction return, with the following adaptations--

(a) references to the transaction to which the return relates shall be read as references to the disqualifying event;

(b) references to the effective date of the transaction shall be read as references to the date on which the disqualifying event occurs.

(4) In this section "the disqualifying event" means--

(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 9(1)(a) of Schedule 7 or, as the case may be, the event mentioned in paragraph 11(1)(a) or (2)(a) of that Schedule;

82 Loss or destruction of, or damage to, return etc

(1) This section applies where--

(a) a return delivered to the Inland Revenue, or

(b) any other document relating to tax made by or provided to the Inland Revenue,

has been lost or destroyed, or been so defaced or damaged as to be illegible or otherwise useless.

(2) The Inland Revenue may treat the return as not having been delivered or the document as not having been made or provided.

(3) Anything done on that basis shall be as valid and effective for all purposes as it would have been if the return had not been made or the document had not been made or provided.

(4) But if as a result a person is charged with tax and he proves to the satisfaction of the General or Special Commissioners having jurisdiction in the case that he has already paid tax in respect of the transaction in question, relief shall be given, by reducing the charge or by repayment as the case may require.

83 Formal requirements as to assessments, penalty determinations etc

(1) An assessment, determination, notice or other document required to be used in assessing, charging, collecting and levying tax or determining a penalty under this Part must be in accordance with the forms prescribed from time to time by the Board and a document in the form so prescribed and supplied or approved by the Board is valid and effective.

(2) Any such assessment, determination, notice or other document purporting to be made under this Part is not ineffective--

(a) for want of form, or

(b) by reason of any mistake, defect or omission in it,

if it is substantially in conformity with this Part and its intended effect is reasonably ascertainable by the person to whom it is directed.

(3) The validity of an assessment or determination is not affected--

(a) by any mistake in it as to--

(i) the name of a person liable, or

(ii) the amount of the tax charged, or

(b) by reason of any variance between the notice of assessment or determination and the assessment or determination itself.

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.

(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 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

(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.

(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

(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

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 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--

(a) section 90 (application to defer payment of tax in case of contingent or uncertain consideration), and

(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

(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.

(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),

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;

(4) In subsection (3)(a) "the disqualifying event" means--

(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 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;

(5) Subsection (3)(c) applies in a case within section 51 (contingent, uncertain or 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 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 section 178 of the Finance Act 1989 from the date it is determined until payment.

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.

(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.

(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 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

(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 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 for carrying this section into effect.

(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 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 an application;

(f) make provision for postponing payment of tax when an application has been made;

(g) provide for an appeal to the General or Special Commissioners against a refusal to accept an application, and make provision in relation to such an appeal corresponding to any provision made in relation to appeals under Part 7 of Schedule 10 (appeals against Revenue decisions on tax);

(h) provide for the effect of accepting an application;

(i) 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) The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a land transaction return.

(5) 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 been paid or provided or is not contingent and whose amount is ascertained or ascertainable at the time the application is made.

This applies as regards both the time of payment and the calculation of the amount payable.

(6) Regulations under this section may provide that where--

(a) a payment is made as mentioned in subsection (5), and

(b) an application under this section is accepted in respect of other chargeable consideration taken into account in calculating the amount of that payment,

section 80 (adjustment where contingency ceases or consideration is ascertained) does not apply in relation to the payment and, instead, any necessary adjustment shall be made in accordance with the regulations.

91 Collection and recovery of tax etc

(1) The provisions of Schedule 12 have effect with respect to the collection and recovery of tax.

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--

(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--

(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.

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--

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 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;
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 exceeding £300.

(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).

(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 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 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 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--

(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

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.

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 done for the purposes of this Part--

(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

(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, 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,

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;

(b) any proceedings against him for the recovery of any tax due from him;

99 General provisions about penalties

(1) Schedule 14 has effect with respect to the determination of penalties under this 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 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 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 or apparent authority of the company to act on its behalf for the purpose.

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--

(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.

(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--

(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.

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 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

(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) 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 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

(b) under which the participants are entitled to exchange rights in one pool for rights in another.

A "part" of an umbrella scheme means such of the arrangements as relate to a separate pool.

(4) In this Part, subject to any regulations under subsection (5)--

"unit trust scheme" has the same meaning as in the Financial Services and Markets Act 2000 (c. 8), and
"unit holder" means a person entitled to a share of the investments subject to the trusts of a unit trust scheme.

(5) The Treasury may by regulations provide that a scheme of a description specified in the regulations is to be treated as not being a unit trust scheme for the purposes of this Part.

Any such regulations may contain such supplementary and transitional provisions as appear to the Treasury to be necessary or expedient.

(6) Section 469A of the Taxes Act 1988 (court common investment funds treated as authorised unit trusts) applies for the purposes of this Part as it applies for the purposes of that Act, with the substitution for references to an authorised unit trust of references to a unit trust scheme.

(7) An unit trust scheme is not to be treated as a company for the purposes of--

section 53 (deemed market value rule for transactions with connected companies), or
Schedule 7 (group relief, reconstruction relief or acquisition relief).

102 Open-ended investment companies

(1) The Treasury may by regulations make such provision as they consider appropriate for securing that the provisions of this Part have effect in relation to--

(a) open-ended investment companies of such description as may be prescribed in the regulations, and

(b) transactions involving such companies,

in a manner corresponding, subject to such modifications as the Treasury consider appropriate, to the manner in which they have effect in relation to unit trust schemes and transactions involving such trusts.

(2) The regulations may, in particular, make provision--

(a) modifying the operation of any prescribed provision in relation to open-ended investment companies so as to secure that arrangements for treating the assets of such a company as assets comprised in separate pools are given an effect corresponding to that of equivalent arrangements constituting the separate parts of an umbrella scheme;

(b) treating the separate parts of the undertaking of an open-ended investment company in relation to which such provision is made as distinct companies for the purposes of this Part.

(3) Regulations under this section may--

(a) make different provision for different cases, and

(b) contain such incidental, supplementary, consequential and transitional provision as the Treasury think fit.

(4) In this section--

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