SDLTM80990 - Compliance: Opening an enquiry

Time to respond: FA03/S97 Power to extend a time limit

This section provides

• that if HM Revenue & Customs allows further time for any request to be effected the purchaser shall not be treated as failing to meet a time limit if the necessary action is taken within the further time allowed.
• where there is a reasonable excuse for not doing anything required to be done for stamp duty land tax, there is no failure to do it within a time limit, providing it is done without unreasonable delay after the excuse has ceased

Statute does not define reasonable excuse therefore all claims should be considered on their own merits. Honesty of purpose is a preliminary condition that a purchaser always needs to fulfil, the circumstances of the purchaser should also be taken into account.

It is important in every case of substance to establish all the relevant facts which may be best done at interview, including

• the circumstances which led to the failure to submit the return on time
• whether the necessary steps were taken to remedy the failure after the excuse had ended

It will be important to test the explanation against any information already held.

Further guidance will be issued as experience is gained in this area.