SDLTM81830 - Compliance: Working an enquiry
Reassessing the tax payable: Relief in the case of an excessive assessment
It could be argued that where a purchaser has entered into a legal contract, which is binding, any adjustment to the underlying figures should be precluded. To adhere strictly to this line of argument would place a co-operative purchaser at a disadvantage, since an un-cooperative purchaser against whom formal steps had to be taken at every stage would still have open to him all the relieving provisions of Finance Act 2003.
Accordingly, the Board will be prepared to re-open a settlement to the extent necessary to allow a purchaser the benefit of any adjustment which could have been claimed if the liability had been dealt with by assessment.
The most common claims are to FA03/SCH10/PARA34 error or mistake adjustments. These claims may be admitted provided all the requisite conditions are satisfied, except for the absence of formal assessments, and all the relevant time limits are complied with. For this latter purpose assessments which were never finally determined should be regarded as determined on the date of acceptance of the offer and assessments which were never made should be regarded as made on that date.
For obvious reasons the Board cannot countenance attempts to re-negotiate a settlement on general grounds unless it is clearly inadmissible, in which case a letter of explanation should be sent. A claim in respect of a settlement negotiated by SCO should be referred to the office involved.
Compliance managers may authorise relief in cases which were settled.
Where a purchaser is assessed twice in error
This is extremely unlikely to occur since in almost all cases tax will only be collected as a result of the submission of a land transaction return. If a person believes they have been assessed more than once in respect of the same transaction, they can claim relief in writing under FA03/SCH10/PARA33. HM Revenue & Customs then has to decide whether to accept the claim and if they do not the person assessed can appeal to a Tax Tribunal.
Where there is a mistake in the land transaction return FA03/SCH10/PARA34
If a person believes they have paid too much tax by reason of some mistake in a land transaction return, they may make a claim to relief to HM Revenue & Customs. The claim must be within 4 years of the effective date.
HM Revenue & Customs shall make enquiries to decide whether the claim is justified and shall repay any overpaid tax and where appropriate recalculate any interest and penalties accordingly.
The purchaser can appeal against a decision of HM Revenue & Customs. No relief is due where the land transaction return was made in accordance with generally prevailing practice or where the error is in a claim or election included in the return.
