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Finance Bill


Finance Bill
Part 4 — Stamp duty land tax

    55

 

     (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

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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 81    Further return where relief withdrawn

     (1)    Where relief is withdrawn to any extent under—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

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           (c)           Schedule 8 (charities relief),

            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

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           (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

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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

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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

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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.

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

     (1)    This section applies where—

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           (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.

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

document as not having been made or provided.

 

 

Finance Bill
Part 4 — Stamp duty land tax

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     (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

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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

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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—

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           (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—

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           (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.

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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.

 

 

Finance Bill
Part 4 — Stamp duty land tax

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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);

5

                    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.

10

     (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

           (c)           Schedule 8 (charities relief),

            must be paid at the same time that a return is made in respect of the withdrawal

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(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

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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

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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;

 

 

Finance Bill
Part 4 — Stamp duty land tax

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           (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—

           (a)           in relation to the withdrawal of group relief, the purchaser ceasing to

5

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

10

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

unascertained consideration) if payment is not deferred under section 90, with

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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.

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     (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

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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

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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

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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.

40

     (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.

 

 

Finance Bill
Part 4 — Stamp duty land tax

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     (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

5

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.

10

     (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;

15

           (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;

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           (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

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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

30

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

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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.

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     (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,

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Part 4 — Stamp duty land tax

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            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

5

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

10

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

15

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

20

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.

25

     (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;

30

                    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

35

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

40

for inspection, and who fails to comply with the notice is liable to a penalty not

exceeding £300.

 

 

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Part 4 — Stamp duty land tax

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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).

5

     (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

10

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

15

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

30

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.

35

 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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