Regulation 23 Relevant declarations in entry notice
This regulation applies where—
a RIF ceases to be a RIF as a result of ceasing to meet a qualifying condition or an exit notice being given in relation to the scheme, and
the RIF has been a RIF for a continuous period of less than two years at the time that it ceases to be a RIF.
A designated HMRC officer must determine that the RIF is to be treated as if the entry notice had never been given in relation to it where—
a relevant declaration was made by an operator of a RIF in the entry notice given in relation to the RIF, and
the designated HMRC officer has reasonable grounds to believe that the operator of the RIF—
did not have the intention referred to in the declaration, or
could not reasonably have had the expectation referred to in the declaration.
Where a determination under paragraph (2) is made, this does not affect any penalties imposed under regulation 40.
Where a determination under paragraph (2) is made for a scheme to which regulation 28 applied—
the determination does not affect any land transaction treated as occurring under that regulation,
a land transaction which is the acquisition of chargeable interests by the participants in the scheme from the scheme is treated as occurring on the date the determination was made,
any consideration in respect of the land transaction is disregarded for the purposes of paragraph 1 of Schedule 4 to FA 2003f1,
paragraph 8 of Schedule 4 to FA 2003f2 does not apply to the land transaction, and
the land transaction is not a notifiable transaction within the meaning given by section 77 FA 2003f3.
A determination under paragraph (2) must be made by notice given by the designated HMRC officer to the operator of the RIF.
A notice under paragraph (5) must include—
the date of the determination, and
the reasons for the determination.
The operator of the RIF must notify each participant in the RIF of any determination under paragraph (2) within the period of 30 days beginning with the day on which the notice under paragraph (5) was given to the operator.
The operator of the RIF may bring an appeal against a determination under paragraph (2).
The appeal must be made by notice given to HMRC within the period of 30 days beginning with the day on which the notice of the determination was given to the operator of the RIF.
Where a notice is given to HMRC, the scheme is to be treated as if the determination under paragraph (2) had not been made until the appeal is determined or withdrawn.
On an appeal that is notified to the tribunal, the tribunal must determine whether the designated HMRC officer had reasonable grounds to make the determination.
The tribunal may affirm or quash the determination.
In this regulation—
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“chargeable interests” has the meaning given by regulation 28(6)(a);
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“designated HMRC officer” means an officer of HMRC who has been designated by the Commissioners for HMRC for the purposes of this regulation;
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“relevant declaration” means a declaration under regulation 4(1)(e), 9(1)(b) or 13(1)(b).
Annotations
Footnotes
- f1
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Paragraph 1 was amended by paragraph 4 of Schedule 1 to the Corporation Tax Act 2010 (c. 4).
- f2
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Paragraph 8 was amended by section 301 of the Finance Act 2004 (c. 6) and the Scotland Act 2012 (c. 11).
- f3
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Section 77 was amended by section 94 of the Finance Act 2008 (c. 9), paragraph 17 of Schedule 3 to the Scotland Act 2012, paragraph 5 of Schedule 39 to the Finance Act 2013 (c. 29) paragraph 9 of Schedule 1 to the Stamp Duty Land Tax Act 2015 (c. 1).