SDLTM81790 - Compliance: Working an enquiry

Reassessing the tax payable: If the liability exceeds the tax-geared penalty threshold: Interview

In most straightforward cases an interview will not be necessary.

In some more serious cases when the stamp duty land tax liability exceeds the tax-geared penalty threshold whether to hold an interview with the purchaser and agent should be considered.

This is an area where the procedure will develop over time and further guidance will be issued in due course. In all cases the compliance manager should be consulted as to whether a meeting is necessary.

The liable person and/or their agent will be invited to attend a meeting. At this meeting they will be advised of

• what has been found
• the amount of tax owed
• how far it is believed the late payment or underpayment of tax is due to fraudulent or negligent conduct on the part of the purchaser

Any explanation should be considered and the amount of penalties and interest that could be determined under formal procedures advised.

An explanation that one sum is due for tax, penalties and interest is necessary. The purchaser will be asked to make an offer. If applicable, the purchaser may be advised what amount is believed to be acceptable.

Agreement reached

Following the interview an agreement may be reached straight away or after a few days of consideration. A formal letter must be issued with the offer to pay the agreed amount within a stated period. An exchange of letters is considered to be a legal contract.

Agreement not reached

Following the interview, if agreement cannot be reached the stamp duty land tax Core will be updated with the liability and a closure notice issued. See SDLTM82490.