(a) he shall be deemed not to have failed to do it unless the excuse ceased,
(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
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;
(c) any proceedings for a penalty or on appeal against the determination of
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
(1) In this Part “company”, except as otherwise expressly provided, means any
body corporate or unincorporated association, but does not include a
(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
Paragraph (b) does not apply where a liquidator has been appointed for the
(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
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
(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
(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
(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
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
(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—
“open-ended investment company” has the meaning given by section 236
of the Financial Services and Markets Act 2000 (c. 8);
“prescribed” means prescribed by regulations under this section; and
“unit trust scheme” and “umbrella scheme” have the same meaning as in
103 Joint purchasers
(1) This section applies to a land transaction where there are two or more
purchasers who are or will be jointly entitled to the interest acquired.
(2) The general rules are that—
(a) any obligation of the purchaser under this Part in relation to the
transaction is an obligation of the purchasers jointly but may be
discharged by any of them,
(b) anything required or authorised by this Part to be done in relation to
the purchaser must be done by or in relation to all of them, and
(c) any liability of the purchaser under this Part in relation to the
transaction (in particular, any liability arising by virtue of the failure to
fulfil an obligation within paragraph (a)), is a joint and several liability
of the purchasers.
These rules are subject to the following provisions.
(3) If the transaction is a notifiable transaction, a single land transaction return is
(4) The declaration required by paragraph 1(1)(c) of Schedule 10 or paragraph
2(1)(c) of Schedule 11 (declaration that return or self-certificate is complete and
correct) must be made by all the purchasers.
(5) If the Inland Revenue give notice of an enquiry into the return or self-
(a) the notice must be given to each of the purchasers,
(b) the powers of the Inland Revenue as to the production of documents
and provision of information for the purposes of the enquiry are
exercisable separately (and differently) in relation to each of the
(c) any of the purchasers may apply for a direction that a closure notice be
given (and all of them are entitled to appear and be heard on the
(d) the closure notice must be given to each of the purchasers.
(6) A Revenue determination or discovery assessment relating to the transaction
must be made against all the purchasers and is not effective against any of
them unless notice of it is given to each of them whose identity is known to the
(7) In the case of an appeal arising from proceedings under this Part relating to the
(a) the appeal may be brought by any of the purchasers,
(b) notice of the appeal must be given to any of them by whom it is not
(c) the agreement of all the purchasers is required if the appeal is to be
settled by agreement,
(d) if it is not settled, any of them are entitled to appear and be heard, and
(e) the decision on the appeal binds all of them.
(8) This section has effect subject to—
the provisions of Schedule 15 relating to partnerships, and
the provisions of Schedule 16 relating to trustees.
(1) Schedule 15 has effect with respect to the application of this Part in relation to
(2) In that Schedule—
Part 1 defines “partnership” and contains other general provisions, and
Part 2 deals with ordinary partnership transactions, and
Part 3 excludes certain transactions from stamp duty land tax.
Schedule 16 has effect with respect to the application of this Part in relation to
106 Persons acting in a representative capacity etc
(1) The person having the direction, management or control of the property of an
(a) is responsible for discharging any obligations under this Part, in
relation to a transaction affecting that property, to which the
incapacitated person would be subject if he were not incapacitated, and
(b) may retain out of money coming into his hands on behalf of the
incapacitated person sums sufficient to meet any payment he is liable
to make under this Part, and, so far as he is not so reimbursed, is
entitled to be indemnified in respect of any such payment.
(2) The parent or guardian of a minor is responsible for discharging any
obligations of the minor under this Part that are not discharged by the minor
(3) The personal representatives of a person who is the purchaser under a land
(a) are responsible for discharging the obligations of the purchaser under
this Part in relation to the transaction, and
(b) may deduct any payment made by them under this Part out of the
assets and effects of the deceased person.
(4) A receiver appointed by a court in the United Kingdom having the direction
and control of any property is responsible for discharging any obligations
under this Part in relation to a transaction affecting that property as if the
property were not under the direction and control of the court.
107 Crown application
(1) Subject to the following provisions of this section, this Part applies in relation
to public offices and departments of the Crown.
But nothing in this Part shall require the payment by any such office or
department of tax that would ultimately be borne by the Crown.
(2) A land transaction under which the purchaser is any of the following is exempt
A Minister of the Crown
The Scottish Ministers
A Northern Ireland department
The Corporate Officer of the House of Lords
The Corporate Officer of the House of Commons
The Scottish Parliamentary Corporate Body
The Northern Ireland Assembly Commission
The National Assembly for Wales
(3) The powers conferred by Part 7 of Schedule 13 (entry with warrant to obtain
information) are not exercisable in relation to premises occupied for the
purposes of the Crown.
108 Linked transactions
(1) Transactions are “linked” for the purposes of this Part if they form part of a
single scheme, arrangement or series of transactions between the same vendor
and purchaser or, in either case, persons connected with them.
Section 839 of the Taxes Act 1988 (connected persons) has effect for the
purposes of this subsection
(2) Where there are two or more linked transactions with the same effective date,
the purchaser, or all of the purchasers if there is more than one, may make a
single land transaction return as if all of those transactions that are notifiable
were a single notifiable transaction.
(3) Where two or more purchasers make a single return in respect of linked
transactions, section 103 (joint purchasers) applies as if—
(a) the transactions in question were a single transaction, and
(b) those purchasers were purchasers acting jointly.
109 General power to vary this Part by regulations
(1) The Treasury may if they consider it expedient in the public interest make
provision by regulations for the variation of this Part in its application to land
transactions of any description.
(2) The power conferred by this section includes, in particular, power to alter—
(a) the descriptions of land transaction that are chargeable or notifiable;
(b) the descriptions of land transaction in respect of which tax is chargeable
at any existing rate or amount.
(3) The power conferred by this section does not, except as mentioned in
subsection (2)(b), include power to vary any threshold, rate or amount
(a) section 55 (amount of tax chargeable: general), or
(b) Schedule 5 (amount of tax chargeable: rent).
(4) This section has effect subject to section 110 (approval of regulations by House
(5) Regulations under this section do not apply in relation to any transaction of
which the effective date is after the end of—
(a) the period of 18 months beginning with the day on which the
regulations were made, or
(b) such shorter period as may be specified in the regulations.
This does not affect the power to make further provision by regulations under
this section to the same or similar effect.
(6) Regulations under this section may include such supplementary, transitional
and incidental provision as appears to the Treasury to be necessary or
(7) The power conferred by this section may be exercised at any time after the
passing of this Act.
110 Approval of regulations under general power
(1) An instrument containing regulations under section 109 (general power to
vary this Part by regulations) must be laid before the House of Commons after
(2) If the regulations are not approved by the House of Commons before the end
of the period of 28 days beginning with the day on which they are made, they
shall cease to have effect at the end of that period (if they have not already
ceased to have effect under subsection (3)).
(3) If on any day during that period of 28 days the House of Commons, in
proceedings on a motion that (or to the effect that) the regulations be approved,
comes to a decision rejecting the regulations, they shall cease to have effect at
the end of that day.
(4) In reckoning any such period of 28 days take no account of any time during
(a) Parliament is prorogued or dissolved, or
(b) the House of Commons is adjourned for more than four days.
(5) Where regulations cease to have effect under this section, their ceasing to have
effect is without prejudice to anything done in reliance on them.
As to claims for repayment, see section 111.
111 Claim for repayment if regulations under general power not approved
(1) Where regulations cease to have effect under section 110, any amount paid by
way of tax, or interest or penalty, that would not have been payable but for the
regulations shall, on a claim, be repaid by the Inland Revenue.