Part II TAXES MANAGEMENT ACT 1970I1

PART III

OTHER RETURNS AND INFORMATION

Power to obtain copies of registers of securities

23

(1)

The Board may cause to be served upon any body corporate a notice requiring them to deliver to the Board within a specified time, being not less than twenty-one days, a copy, certified by a duly authorised officer of such body, of the whole of, or any specified class of entries in, any register containing the names of the holders of any securities issued by them.

(2)

On delivery of the copy in accordance with the notice payment shall be made therefor at the rate of 25 pence in respect of each one hundred entries.

(3)

In this section “securities” means chargeable securities, and “entry” means, in relation to any register, so much thereof as relates to the securities held by any one person.

Issuing houses, stockbrokers, etc

25

(1)

For the purpose of obtaining particulars of relevant transations the Board may by notice require a return under any of the provisions of this section.

(2)

An issuing house or other person carrying on a business of effecting public issues of shares or securities in any company, or placings of shares or securities in any company, either on behalf of the company, or on behalf of holders of blocks of shares or securities which have not previously been the subject of a public issue or placing, may be required to make a return of all such public issues or placings effected by that person in the course of the business in the period specified in the notice requiring the return, giving particulars of the persons to or with whom the shares or securities are issued, allotted or placed, and the number or amount of the shares or securities so obtained by them respectively.

(3)

A person not carrying on such a business may be required to make a return as regards any such public issue or placing effected by that person and specified in the notice, giving particulars of the persons to or with whom the shares or securities are issued, allotted, or placed and the number or amount of the shares or securities so obtained by them respectively.

F1(4)

A member of a recognised investment exchange or a market of the kind described in F2paragraph 36(2) of Part III of the Schedule to the Financial Services and Markets Act 2000 (Exemption) Order 2001 (“EEA regulated market”) may be required to make a return giving particulars of any transactions effected by him in the course of his business in the period specified in the notice requiring the return and giving particulars of—

(a)

the parties to the transactions,

(b)

the number or amount of the shares or securities dealt with in the respective transactions, and

(c)

the amount or value of the consideration.

(5)

A person (other than a member of a recognised investment exchange or an EEA regulated market) who acts as an agent or broker in the United Kingdom in transactions in shares or securities may be required to make a return giving particulars of any such transactions effected by him in the period specified in the notice, and giving particulars of—

(a)

the parties to the transactions,

(b)

the number or amount of the shares or securities dealt with in the respective transactions, and

(c)

the amount or value of the consideration.

(8)

No person shall be required under this section to include in a return particulars of any transaction effected more than three years before the service of the notice requiring him to make the return.

(9)

In this section “shares or securities” means chargeable securities and “company” shall be construed accordingly.

(5)

A person (other than a member of a recognised investment exchange or an EEA regulated market) who acts as an agent or broker in the United Kingdom in transactions in shares or securities may be required to make a return giving particulars of any such transactions effected by him in the period specified in the notice, and giving particulars of—

(a)

the parties to the transactions,

(b)

the number or amount of the shares or securities dealt with in the respective transactions, and

(c)

the amount or value of the consideration.

Nominee shareholders

26

(1)

If, for the purpose of obtaining particulars of relevant transactions, any person in whose name any shares of a company are registered is so required by notice by the Board, he shall state whether or not he is the beneficial owner of those shares and, if not the beneficial owner of those shares or any of them, shall furnish the name and address of the person or persons on whose behalf the shares are registered in his name.

(2)

In this section references to shares are references to chargeable securities.

PART V

APPEAL AND OTHER PROCEEDINGS

F3Meaning of tribunal

47C

In this Act “tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

Appeal: HMRC review or determination by tribunal

49A

(1)

This section applies if notice of appeal has been given to HMRC.

(2)

In such a case—

(a)

the appellant may notify HMRC that the appellant requires HMRC to review the matter in question (see section 49B),

(b)

HMRC may notify the appellant of an offer to review the matter in question (see section 49C), or

(c)

the appellant may notify the appeal to the tribunal (see section 49D).

(3)

See sections 49G and 49H for provision about notifying appeals to the tribunal after a review has been required by the appellant or offered by HMRC.

Appellant requires review by HMRC

49B

(1)

Subsections (2) and (3) apply if the appellant notifies HMRC that the appellant requires HMRC to review the matter in question.

(2)

HMRC must, within the relevant period, notify the appellant of HMRC’s view of the matter in question.

(3)

HMRC must review the matter in question in accordance with section 49E.

(4)

The appellant may not notify HMRC that the appellant requires HMRC to review the matter in question and HMRC shall not be required to conduct a review if—

(a)

the appellant has already given a notification under this section in relation to the matter in question,

(b)

HMRC have given a notification under section 49C in relation to the matter in question, or

(c)

the appellant has notified the appeal to the tribunal under section 49D.

(5)

In this section “relevant period” means—

(a)

the period of 30 days beginning with the day on which HMRC receive the notification from the appellant, or

(b)

such longer period as is reasonable.

HMRC offer review

49C

(1)

Subsections (2) to (6) apply if HMRC notify the appellant of an offer to review the matter in question.

(2)

When HMRC notify the appellant of the offer, HMRC must also notify the appellant of HMRC’s view of the matter in question.

(3)

If, within the acceptance period, the appellant notifies HMRC of acceptance of the offer, HMRC must review the matter in question in accordance with section 49E.

(4)

If the appellant does not give HMRC such a notification within the acceptance period HMRC’s view of the matter in question is to be treated as conclusive for the purposes of Part IV of the Finance Act 1986 F4... against a person on whom the notice is served.

(6)

Subsection (4) does not apply to the matter in question if, or to the extent that, the appellant notifies the appeal to the tribunal under section 49H.

(7)

HMRC may not notify the appellant of an offer to review the matter in question (and, accordingly, HMRC shall not be required to conduct a review) if—

(a)

HMRC have already given a notification under this section in relation to the matter in question,

(b)

the appellant has given a notification under section 49B in relation to the matter in question, or

(c)

the appellant has notified the appeal to the tribunal under section 49D.

(8)

In this section “acceptance period” means the period of 30 days beginning with the date of the document by which HMRC notify the appellant of the offer to review the matter in question.

Notifying appeal to the tribunal

49D

(1)

This section applies if notice of appeal has been given to HMRC.

(2)

The appellant may notify the appeal to the tribunal.

(3)

If the appellant notifies the appeal to the tribunal, the tribunal is to decide the matter in question.

(4)

Subsections (2) and (3) do not apply in a case where—

(a)

HMRC have given a notification of their view of the matter in question under section 49B, or

(b)

HMRC have given a notification under section 49C in relation to the matter in question.

(5)

In a case falling within subsection (4)(a) or (b), the appellant may notify the appeal to the tribunal, but only if permitted to do so by section 49G or 49H.

Nature of review etc

49E

(1)

This section applies if HMRC are required by section 49B or 49C to review the matter in question.

(2)

The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.

(3)

For the purpose of subsection (2), HMRC must, in particular, have regard to steps taken before the beginning of the review—

(a)

by HMRC in deciding the matter in question, and

(b)

by any person in seeking to resolve disagreement about the matter in question.

(4)

The review must take account of any representations made by the appellant at a stage which gives HMRC a reasonable opportunity to consider them.

(5)

The review may conclude that HMRC’s view of the matter in question is to be—

(a)

upheld,

(b)

varied, or

(c)

cancelled.

(6)

HMRC must notify the appellant of the conclusions of the review and their reasoning within—

(a)

the period of 45 days beginning with the relevant day, or

(b)

such other period as may be agreed.

(7)

In subsection (6) “relevant day” means—

(a)

in a case where the appellant required the review, the day when HMRC notified the appellant of HMRC’s view of the matter in question,

(b)

in a case where HMRC offered the review, the day when HMRC received notification of the appellant’s acceptance of the offer.

(8)

Where HMRC are required to undertake a review but do not give notice of the conclusions within the time period specified in subsection (6), the conclusion of the review is deemed to be that HMRC’s view of the matter in question (see sections 49B(2) and 49C(2)) is upheld.

(9)

If subsection (8) applies, HMRC must notify the appellant of the conclusion which the review is treated as having reached.

Effect of conclusions of review

49F

(1)

This section applies if HMRC give notice of the conclusions of a review (see section 49E(6) and (9)).

(2)

The conclusions are to be treated as conclusive for the purposes of Part IV of the Finance Act 1986 ... against a person on whom the notice is served.

(4)

Subsection (2) does not apply to the matter in question if, or to the extent that, the appellant notifies the appeal to the tribunal under section 49G.

Notifying appeal to tribunal after review concluded

49G

(1)

This section applies if—

(a)

HMRC have given notice of the conclusions of a review in accordance with section 49E, or

(b)

the period specified in section 49E(6) has ended and HMRC have not given notice of the conclusions of the review.

(2)

The appellant may notify the appeal to the tribunal within the post-review period.

(3)

If the post-review period has ended, the appellant may notify the appeal to the tribunal only if the tribunal gives permission.

(4)

If the appellant notifies the appeal to the tribunal, the tribunal is to determine the matter in question.

(5)

In this section “post-review period” means—

(a)

in a case falling within subsection (1)(a) the period of 30 days beginning with the date of the document in which HMRC give notice of the conclusions of the review in accordance with section 49E(6), or

(b)

in a case falling within subsection (1)(b), the period that—

(i)

begins with the day following the last day of the period specified in section 49E(6), and

(ii)

ends 30 days after the date of the document in which HMRC give notice of the conclusions of the review in accordance with section 49E(9).

Notifying appeal to tribunal after review offered but not accepted

49H

(1)

This section applies if—

(a)

HMRC have offered to review the matter in question (see section 49C), and

(b)

the appellant has not accepted the offer.

(2)

The appellant may notify the appeal to the tribunal within the acceptance period.

(3)

But if the acceptance period has ended, the appellant may notify the appeal to the tribunal only if the tribunal gives permission.

(4)

If the appellant notifies the appeal to the tribunal, the tribunal is to determine the matter in question.

(5)

In this section “acceptance period” has the same meaning as in section 49C.

Interpretation of sections 49A to 49H

49I

(1)

In sections 49A to 49H—

(a)

“matter in question” means the matter to which an appeal relates;

(b)

a reference to a notification is a reference to a notification in writing.

(2)

In sections 49A to 49H a reference to the appellant includes a person acting on behalf of the appellant except in relation to—

(a)

notification of HMRC’s view under section 49B(2);

(b)

notification by HMRC of an offer of review (and of their view of the matter) under section 49C;

(c)

notification of the conclusions of a review under section 49E(6); and

(d)

notification of the deemed conclusions of a review under section 49E(9).

(3)

But if a notification falling within any of the paragraphs of subsection (2) is given to the appellant, a copy of the notification may also be given to a person acting on behalf of the appellant.

PART VI

COLLECTION AND RECOVERY

Distraint and poinding

F5Issue of demand notes and receipts.

60

(1)

Every collector shall, when the tax becomes due and payable, make demand of the respective sums given to him in charge to collect, from the persons charged therewith, or at the places of their last abode, or on the premises in respect of which the tax is charged, as the case may require.

(2)

On payment of the tax, the collector shall if requested give a receipt.

Distraint by collectors

61

(1)

If a person neglects or refuses to pay the sum charged, upon demand made by the collector, the collector shall, for non-payment thereof, distrain upon the lands, tenements and premises in respect of which the tax is charged, or distrain the person charged by his goods and chattels, and all such other goods and chattels as the collector is hereby authorised to distrain.

(2)

For the purpose of levying any such distress, a collector may, after obtaining a warrant for the purpose signed by the General Commissioners, break open, in the daytime, any house or premises, calling to his assistance any constable.

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

(3)

A levy or warrant to break open shall 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 a person neglecting or refusing to pay.

(5)

If the person aforesaid does not pay the sum due, together with the costs and charges within the said five days, the distress shall be appraised by two or more inhabitants of the parish in which the distress is taken, or by other sufficient persons, and shall be sold by public auction by the collector for payment of the sum due and all costs and charges.

The costs and charges of taking, keeping, and selling the distress shall be retained by the collector, and any overplus coming by 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.

F6Recovery of tax in Scotland

63

(1)

Subject to subsection (3) below, 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 due by him;

(b)

stating that the collector has demanded payment under section 60 of this Act from each such person of the amount due by him;

(c)

stating that 14 days have elapsed since the date of such demand without payment of the said amount; and

(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 subsection (2) below, of the amount remaining due and unpaid.

(2)

The diligences referred to in subsection (1) above are—

(a)

a poinding and sale in accordance with Schedule 5 to the Debtors (Scotland) Act 1987;

(b)

an earnings arrestment;

(c)

an arrestment and action of furthcoming or sale.

F7Sheriff officer’s fees and outlays.

63A

(1)

Subject to subsection (2) below and without prejudice to paragraphs 25 to 34 of Schedule 5 to the Debtors (Scotland) Act 1987 (expenses of poinding and sale), the sheriff officer’s fees, together with the outlays necessarily incurred by him, in connection with the execution of a summary warrant shall be chargeable against the debtor.

(2)

No fee shall be 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.

Court proceedings

Magistrates' Courts

65

F8(1)

Where the amount of any tax for the time being due and payable is less than £1,000, the tax shall, without prejudice to any other remedy, be recoverable summarily as a civil debt by proceedings commenced in the name of a collector.

(4)

It is hereby declared that in subsection (1) above the expression “recoverable summarily as a civil debt” in respect of proceedings in Northern Ireland means recoverable in proceedings under Article 62 of the Magistrates' Courts (Northern Ireland) Order 1981.

County courts

66

F9(1)

Tax due and payable under the Act may, in England and Wales, and in Northern Ireland where the amount does not exceed the limit specified in Article 10(1) of the County Courts (Northern Ireland) Order 1980, without prejudice to any other remedy, be sued for and recovered from the person charged therewith as a debt due to the Crown by proceedings in a county court commenced in the name of a collector.

(2)

An officer of the Board who is authorised by the Board to do so may address the court in any proceedings under this section in a county court in England and Wales.

F10(2A)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11(3)

In this section as it applies in Northern Ireland the expression “county court” shall mean a county court held for a division under the County Courts (Northern Ireland) Order 1980.

(4)

Sections 21 and 42(2) of the Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this section, and Part III of the County Courts (Northern Ireland) Order 1980 (general civil jurisdiction) shall apply for the purposes of this section in Northern Ireland.

Inferior courts in Scotland

67

(1)

In Scotland, where the amount of tax for the time being due and payable does not exceed the sum for the time being specified in section 35(1)(a) of the Sheriff Courts (Scotland) Act 1971 the tax may, without prejudice to any other remedy, be sued for and recovered from the person charged therewith as a debt due to the Crown by proceedings commenced in the name of a collector in the sheriff court.

(2)

Sections 65 and 66 above shall not apply in Scotland.

High Court, etc

68

(1)

Any tax may be sued for and recovered from the person charged therewith in the High Court as a debt due to the Crown, or by any other means whereby any debt of record or otherwise due to the Crown can, or may at any time, be sued for and recovered, as well as by the other means specially provided by this Act for levying the tax.

(2)

All matters within the jurisdiction of the High Court under this section shall be assigned in Scotland to the Court of Session sitting as the Court of Exchequer.

Supplemental

Interest on tax

69

Interest charged under the Act shall be treated for the purposes—

(a)

of sections 61, 63 and 65 to 68 above, and

(b)

of section 35(2)(g)(i) of the Crown Proceedings Act 1947 (rules of court to impose restrictions on set-off and counterclaim where the proceedings or set-off or counterclaim relate to taxes) and of any rules of court (including county court rules) for England and Wales or Northern Ireland, which impose such a restriction, and

(c)

of section 35(2)(b) of the said Act of 1947 as set out in section 50 of that Act (which imposes corresponding restrictions in Scotland),

as if it were tax due and payable.

PART VII

PERSONS CHARGEABLE IN A REPRESENTATIVE CAPACITY, ETC

Bodies of persons

71

(2)

Subject to section 108 of this Act, the chamberlain or other officer acting as treasurer, auditor or receiver for the time being of any body of persons accountable or liable for tax shall be answerable for doing all such acts as are required to be done under the Act and for payment of the tax.

(3)

Every such officer as aforesaid may from time to time retain, out of any money coming into his hands on behalf of the body, so much thereof as is sufficient to pay the tax for which the body is accountable or liable, and shall be indemnified for all such payments made in pursuance of the Act.

Trustees, guardians, etc., of incapacitated persons

F1272

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Further provision as to infants

73

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Personal representatives

74

(1)

If a person accountable or liable for tax dies, the executor or administrator of the person deceased shall be liable for the tax for which such deceased person is accountable or liable, and may deduct any payments made under this section out of the assets and effects of the person deceased.

(2)

On neglect or refusal of payment, any person liable under this section may be proceeded against in like manner as any other defaulter.

PART VIII

CHARGES ON NON-RESIDENTS

Method of charging non-residents

78

(1)

A person not resident in the United Kingdom shall be accountable or liable for tax in the name of any such trustee, guardian, tutor, curator or committee as is mentioned in section 72 of this Act, or of any branch or agent, in like manner and to the like amount as such non-resident person would be accountable or liable if he were resident in the United Kingdom.

Responsibilities and indemnification of persons in whose name a non-resident person is chargeable

83

(1)

A person who is accountable or liable in respect of a non-resident person shall be answerable for all matters required to be done under the Act for the purpose thereof.

(2)

A person who is accountable or liable under the Act in respect of any non-resident person as aforesaid may retain, out of money coming into his hands on behalf of any such person, so much thereof from time to time as is sufficient to pay the tax for which he is accountable or liable, and shall be indemnified for all such payments made in pursuance of the Act.

PART IX

INTEREST ON OVERDUE TAX

F13Interest on overdue tax

86

(1)

Tax which becomes due and payable shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from 1 October 1999 or the accountable date, whichever is the later, until payment.

(3)

Subsection (1) above applies even if the accountable date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.

The prescribed rate of interest

F1489

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disallowance of relief for interest on tax

90

Interest payable under this Part of this Act shall be paid without any deduction of income tax and shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.

PART X

PENALTIES, ETC

F15Failure to give notice for stamp duty reserve tax.

93

(1)

This section applies where any person (the taxpayer) fails to give a notice which he is required to give under regulation F164 or 4A of the Stamp Duty Reserve Tax Regulations 1986.

(2)

The taxpayer shall be liable to a penalty which shall be £100.

F17(3)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)

Without prejudice to any penalties under subsections (2) and (3) above, if the failure by the taxpayer to give the notice continues after the end of a period of one year beginning on the last day on which the notice should have been given, he shall be liable to a penalty of an amount not exceeding the amount of the tax which he should have paid by the date by which he should have given the notice.

(6)

No penalty shall be imposed under subsection (3) above in respect of a failure at any time after the failure has been remedied.

Incorrect notice, etc. for stamp duty reserve tax

95

F18(1)

Where a person fraudulently or negligently—

(a)

gives any incorrect notice under regulation 4 or 4A of the Stamp Duty Reserve Tax Regulations 1986, or

(b)

makes any incorrect statement or declaration in, or in connection with, any claim in respect of stamp duty reserve tax,

he shall be liable to a penalty not exceeding the amount of the difference specified in subsection (2) below.

(2)

The difference is that between—

(a)

the amount of stamp duty reserve tax payable by the said person, and

(b)

the amount which would have been the amount so payable if the notice, statement or declaration as given or made by him had been correct.

Incorrect notice; supplemental

97

(1)

Where any such notice, statement or declaration as are mentioned in section 95 above were given or made by any person neither fraudulently nor negligently and it comes to his notice (or, if he has died, to the notice of his personal representatives) that they were incorrect, then, unless the error is remedied without unreasonable delay, the notice, statement or declaration shall be treated for the purposes of that section as having been negligently given or made by him.

Special returns, etc.

F1998

( 1)

Where any person—

(a)

has been required, by a notice served under or for the purposes of any of the provisions specified in the first column of the Table below, to deliver any return or other document, to furnish any particulars, to produce any document, or to make anything available for inspection, and he fails to comply with the notice, or

(b)

fails to furnish any information, give any certificate or produce any document or record in accordance with any of the provisions specified in the second column of the Table below,

he shall be liable, subject to subsections (3) and (4) below—

(i)

to a penalty not exceeding £300, and

(ii)

if the failure continues after a penalty is imposed under paragraph (i) above, 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 paragraph (i) above was imposed (but excluding any day for which a penalty under this paragraph has already been imposed).

(2)

Where a person fraudulently or negligently furnishes, gives, produces or makes any incorrect information, certificate, document, record or declaration of a kind mentioned in any of the provisions specified in either column of the Table below, he shall be liable to a penalty not exceeding £3,000.

(3)

No penalty shall be imposed under subsection (1) above in respect of a failure within paragraph (a) of that subsection at any time after the failure has been remedied.

(4)

No penalty shall be imposed under paragraph (ii) of subsection (1) above in respect of a failure within paragraph (b) of that subsection at any time after the failure has been remedied.

F20TABLE

1	2
Section 23 of this Act;	The Stamp Duty Reserve Tax Regulations 1986 (other than F21regulations F224 and 4A) .
Section 25(1), (2), (3), (4), (5), (8) and (9) of this Act;	F23The Stamp Duty Reserve Tax (UK Depositary Interests in Foreign Securities) Regulations 1999
Section 26 of this Act;
The Stamp Duty Reserve Tax Regulations 1986.

F24Assessing in giving incorrect notice etc.

99

Any person who assists in or induces the giving of any notice under regulation 4 or 4A F25... of the Stamp Duty Reserve Tax Regulations 1986 F26or Schedule 36 to the Finance Act 2008 which he knows to be incorrect shall be liable to a penalty not exceeding £3,000.

F27Determination of penalties by officer of Board.

100

(1)

Subject to subsection (2) below and except where proceedings for a penalty have been instituted under section 100D below or a penalty has been imposed by the Special Commissioners under section 53 of this Act, an officer of the Board authorised by the Board for the purposes of this section may make a determination imposing a penalty under any provision of this Act and setting it at such amount as, in his opinion, is correct or appropriate.

(2)

Subsection (1) above does not apply where the penalty is a penalty under—

(a)

section 93(1)(a) above, or

(c)

section 98(1)(i) above.

(3)

Notice of a determination of a penalty under this section shall be served on the person liable to the penalty and shall state the date on which it is issued and the time within which an appeal against the determination may be made.

(4)

After the notice of a determination under this section has been served the determination shall not be altered except in accordance with this section or on appeal.

(5)

If it is discovered by an officer of the Board authorised by the Board for the purposes of this section that the amount of a penalty determined under this section is or has become insufficient the officer may make a determination in a further amount so that the penalty is set at the amount which, in his opinion, is correct or appropriate.

Provisions supplementary to section 100.

100A

(1)

Where a person who has incurred a penalty has died, a determination under section 100 above which could have been made in relation to him may be made in relation to his personal representatives, and any penalty imposed on personal representatives by virtue of this subsection shall be a debt due from and payable out of his estate.

(2)

A penalty determined under section 100 above shall be due and payable at the end of the period of thirty days beginning with the date of the issue of the notice of determination.

(3)

A penalty determined under section 100 above shall for all purposes be treated as if it were tax charged and due and payable.

Appeals against penalty determination.

100B

(1)

An appeal may be brought against the determination of a penalty under section 100 above and, subject to the following provisions of this section, the provisions of the Stamp Duty Reserve Tax Regulations 1986 relating to appeals against determinations specified in notices under regulation 6 of those Regulations (“regulation 6 determinations”) shall have effect in relation to an appeal against such a determination as they have effect in relation to appeals against regulation 6 determinations.

(2)

On an appeal against the determination of a penalty under section 100 above—

(a)

in the case of a penalty which is required to be of a particular amount, the F28First-tier Tribunal may—

(i)

if it appears F29... that no penalty has been incurred, set the determination aside,

(ii)

if the amount determined appears ... to be correct, confirm the determination, or

(iii)

if the amount determined appears ... to be incorrect, increase or reduce it to the correct amount,

(b)

in the case of any other penalty, the First-tier Tribunal may—

(i)

if it appears ... that no penalty has been incurred, set the determination aside,

(ii)

if the amount determined appears ... to be appropriate, confirm the determination,

(iii)

if the amount determined appears ... to be excessive, reduce it to such other amount (including nil) F30as it considers appropriate, or

(iv)

if the amount determined appears ... to be insufficient, increase it to such amount not exceeding the permitted maximum as it considers appropriate.

(F313)

In addition to any right of appeal on a point of law under section 11(2) of the TCEA 2007, the person liable to the penalty may appeal to the Upper Tribunal against the amount of the penalty which had been determined under subsection (2), but not against any decision which falls under section 11(5)(d) or (e) of that Act and was made in connection with the determination of the amount of the penalty.

(3A)

Section 11(3) and (4) of the TCEA 2007 applies to the right of appeal under subsection (3) as it applies to the right of appeal under section 11(2) of that Act.

(3B)

On an appeal under this section the Upper Tribunal has the same powers as are conferred on the First-tier Tribunal by virtue of this section.

Penalty proceedings before F32First-tier Tribunal.

100C

(1)

An officer of the Board authorised by the Board for the purposes of this section may commence proceedings before the F33First-tier Tribunal for any penalty to which subsection (1) of section 100 above does not apply by virtue of subsection (2) of that section.

(F342)

The person liable to the penalty shall be a party to the proceedings.

(3)

Any penalty determined by the F35First-tier Tribunal in proceedings under this section shall for all purposes be treated as if it were tax charged and due and payable.

(F364)

In addition to any right of appeal on a point of law under section 11(2) of the TCEA 2007, the person liable to the penalty may appeal to the Upper Tribunal against the amount of the penalty which had been determined under subsection (1), but not against any decision which falls under section 11(5)(d) or (e) of that Act and was made in connection with the determination of the amount of the penalty.

(4A)

section 11(3) and (4) of the TCEA 2007 applies to the right of appeal under subsection (4) as it applies to the right of appeal under section 11(2) of that Act.

(5)

On any such appeal the F37Upper Tribunal may—

(a)

if it appears that no penalty has been incurred, set the determination aside,

(b)

if the amount determined appears to be appropriate, confirm the determination,

(c)

if the amount determined appears to be excessive, reduce it to such other amount (including nil) as the Upper Tribunal considers appropriate, or

(d)

if the amount determined appears to be insufficient, increase it to such amount not exceeding the permitted maximum as the Upper Tribunal considers appropriate.

Penalty proceedings before court.

100D

(1)

Where in the opinion of the Board the liability of any person for a penalty arises by reason of the fraud of that or any other person, proceedings for the penalty may be instituted before the High Court or, in Scotland, the Court of Session as the Court of the Exchequer in Scotland.

(2)

Proceedings under this section which are not instituted (in England, Wales or Northern Ireland) under the Crown Proceedings Act 1947 by and in the name of the Board as an authorised department for the purposes of that Act shall be instituted—

(a)

in England and Wales, in the name of the Attorney General,

(b)

in Scotland, in the name of the Lord Advocate, and

(c)

in Northern Ireland, in the name of the Attorney General for Northern Ireland.

(3)

Any proceedings under this section instituted in England and Wales shall be deemed to be civil proceedings by the Crown within the meaning of Part II of the Crown Proceedings Act 1947 and any such proceedings instituted in Northern Ireland shall be deemed to be civil proceedings within the meaning of that Part of that Act as for the time being in force in Northern Ireland.

(4)

If in proceedings under this section the court does not find that fraud is proved but consider that the person concerned is nevertheless liable to a penalty, the court may determine a penalty notwithstanding that, but for the opinion of the Board as to fraud, the penalty would not have been a matter for the court.

Evidence for purposes of preceding provisions of Part X

101

For the purposes of the preceding provisions of this Part of this Act, any notice under regulation 6 of The Stamp Duty Reserve Tax Regulations 1986 which can no longer be varied or quashed by F38a tribunal on an appeal notified to it or by order of any court shall be sufficient evidence of the matters specified.

Mitigation of penalties

102

The Board may in their discretion mitigate any penalty, or stay or compound any proceedings for recovery thereof, and may also, after judgment, further mitigate or entirely remit the penalty.

F39Time limits for penalties.

103

(1)

Where the amount of a penalty is to be ascertained by reference to tax payable by a person, the penalty may be determined by an officer of the Board, or proceedings for the penalty may be commenced before the F40tribunal or a court—

(a)

at any time within six years after the date on which the penalty was incurred, or

(b)

at any later time within three years after the final determination of the amount of tax by reference to which the amount of the penalty is to be ascertained.

(3)

A penalty under section 99 of this Act may be determined by an officer of the Board, or proceedings for such a penalty may be commenced before a court, at any time within twenty years after the date on which the penalty was incurred.

(4)

A penalty to which neither subsection (1) nor subsection (3) above applies may be so determined, or proceedings for such a penalty may be commenced before the tribunal or a court, at any time within six years after the date on which the penalty was incurred or began to be incurred.

Saving for criminal proceedings

104

The provisions of this Act shall not, save so far as is otherwise provided, affect any criminal proceedings for any offence.

Evidence in cases of fraud or wilful default

105

(1)

Statements made or documents produced by or on behalf of a person shall not be inadmissable in any such proceedings as are mentioned in subsection (2) below by reason only that it has been drawn to his attention that—

(a)

in relation to tax, the Board may accept pecuniary settlements instead of instituting proceedings, and

(b)

though no undertaking can be given as to whether or not the Board will accept such a settlement in the case of any particular person, it is the practice of the Board to be influenced by the fact that a person has made a full confession of any fraud or default to which he had been a party and has given full facilities for investigation,

and that he was or may have been induced thereby to make the statements or produce the documents.

(2)

The proceedings mentioned in subsection (1) above are—

(a)

any criminal proceedings against the person in question for any form of fraud or wilful default in connection with or in relation to tax, and

(b)

any proceedings against him for the recovery of any sum due from him, whether by way of tax or penalty, in connection with or in relation to tax.

PART XI

MISCELLANEOUS AND SUPPLEMENTAL

Companies

Responsibility of company officers

108

(1)

Everything to be done by a company under the Act shall be done by the company acting through the proper officer of the company, and service on a company of any document under or in pursuance of the Act may be effected by serving it on the proper officer.

(2)

Tax for which a company which is not a body corporate, or which is a body corporate not incorporated under F41any enactment forming part of the law of the United Kingdom, or by Charter, is accountable or liable, may, at any time after the tax becomes due, and without prejudice to any other method of recovery, be recovered from the proper officer of the company, and that 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, shall be entitled to be indemnified by the company in respect of the liability so imposed on him.

(3)

For the purposes of this section—

(a)

the proper officer of a company which is a body corporate shall be the secretary or person acting as secretary of the company, except that if a liquidator has been appointed for the company the liquidator shall be the proper officer,

(b)

the proper officer of a company which is not a body corporate or for which there is no proper officer within paragraph (a) above, shall be the treasurer or the person acting as treasurer, of the company.

Valuation

Valuation of assets: power to inspect

F42111

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Documents

Want of form or errors not to invalidate notice of determination, etc

114

(1)

A notice of determination, warrant or other proceeding which purports to be made in pursuance of any provision of the Act shall not be quashed, or deemed to be void or voidable, for want of form, or be affected by reason of a mistake, defect or omission therein, if the same is in substance and effect in conformity with or according to the intent and meaning of the Act, and if the person intended to be affected thereby is designated therein according to common intent and understanding.

(2)

A notice of determination shall not be impeached or affected—

(a)

by reason of a mistake therein as to—

(i)

the name or surname of a person, or

(ii)

any matter specified therein.

Interpretation

Interpretation

118

(1)

In this Act, unless the context otherwise requires—

• “Act” includes an Act of the Parliament of Northern Ireland and “enactment” shall be construed accordingly,

• “body of persons” means any body politic, corporate or collegiate, and any company, fraternity, fellowship and society of persons, whether corporate or not corporate,

• “branch or agency” means any factorship, agency, receivership, branch or management, and “branch or agent” shall be construed accordingly,

• “collector” means any collector of taxes,

• “company” has the meaning given by section 526(5) of the principal Act (with section 354 of that Act),

• F43“HMRC” means “Her Majesty’s Revenue and Customs;

• F44...

• “neglect” means negligence or a failure to give any notice, make any return or to produce or furnish any document or other information required by or under the Act,

• “the principal Act” means the Income and Corporation Taxes Act 1970;

• “the TCEA 2007” means the Tribunals, Courts and Enforcement Act 2007;

• tribunal” is to be read in accordance with section 47C.

(2)

For the purposes of this Act, a person shall be deemed not to have failed to to do anything required to be done within a limited time if he did it within such further time, if any, as the Board or the F45tribunal or officer concerned may have allowed; and where a person had a reasonable excuse for not doing anything required to be done he shall be deemed not to have failed to do it unless the excuse ceased and, after the excuse ceased, he shall be deemed not to have failed to do it if he did it without unreasonable delay after the excuse had ceased.