SDLTM82450 - Compliance: Concluding an enquiry

Closure notices: The closure notice: General information

An enquiry is completed on the issue of a closure notice which advises the purchaser

• that the enquiries are complete
• what conclusions have been met
• of any necessary amendments

The due date for any payment of extra tax payable, or for any repayment due to the purchaser, is within 30 days after the closure notice is issued.

Unless the exact date of receipt is known it is assumed that first class post takes 2 working days to arrive and second class post takes 4 working days. Working days do not include weekends or bank holidays.

If the closure notice is posted second class on Tuesday 21 September 2004, it is received (notice given) 4 working days later on Monday 27 September and any tax due or any repayment due to the purchaser must be paid by 27 October 2004 (30 days after notice was given).

Where a compliance caseworker has been able to determine that the land transaction return (or amendment) is correct and complete, the closure notice should reflect that conclusion.

The purchaser should be advised in writing, with a copy sent to the agent if one is acting. This is straightforward where there has been no purchaser amendment during the enquiry.

The purchaser may have amended their land transaction return during an enquiry. Normally any amendment should be included in the enquiry but if it has not this must be stated in the closure notice and effect given to the purchaser's amendment.

If the purchaser's amendment was included in the enquiry and it was concluded that the amendment was correct this must now be acknowledged. The closure notice will say that it has been concluded that no amendment is needed to the land transaction return as a result of the enquiry (the amendment now being made is the purchaser's amendment and is not an amendment made as a result of the compliance caseworker’s enquiry).

If it is concluded that the purchaser's amendment made during the enquiry is wholly or partially incorrect a compliance caseworker will make an amendment as a result of their enquiry. The end result may be that the land transaction return figures remain as they originally were, if the purchaser's amendment was rejected but no other amendments to the return were made. The purchaser can appeal against your conclusion or against the amendment of their amended return.

Where a compliance caseworker is giving effect to a purchaser amendment, they should explain when any tax now payable is due.

The purchaser's right of appeal should be explained so that they can appeal against the conclusion even though the land transaction return is not being amended (for example they may feel that the enquiry uncovered a reduction in the tax due but the compliance caseworker does not).

The compliance caseworker may wish to take the opportunity to add any further appropriate comments. For example, thanking the purchaser for their co-operation, or drawing their attention to any points that need to be made (although in some cases these may need to be addressed to the agent instead).

Where an enquiry relates wholly or partly to a claim or election within the land transaction return and it is considered that the claim should be disallowed to some extent the compliance caseworker will need to reflect that conclusion in their notice of closure. The effect of the disallowance of the claim may be to require an amendment to the land transaction return in which case the closure notice should amend the return in the normal way.

However, in some cases the disallowance of the claim or election will have no effect on the land transaction return. In these cases the closure notice will need to be tailored appropriately and the compliance caseworker’s conclusions about the claim or election stated clearly and separately from any amendment.

All such adjustments must be made within 30 days of the notification of the relevant amendment whether or not an appeal has been made.

The same procedures apply following a decision by a Tax tribunal on an appeal against an amendment or decision by an officer of the Board.