SDLTM82620 - Compliance: Concluding an enquiry

Closure notices: Closure applications by the purchaser: Jeopardy amendments

On a land transaction return, if there is more than one amendment, the latest amendment displaces the earlier one.

Any amendment, whether made by the purchaser or by HM Revenue & Customs, will replace the jeopardy amendment. The appeal against the jeopardy amendment will however remain in existence.

Where a jeopardy amendment has been made during the course of an enquiry, one of three conclusions will have been reached at the time a closure notice is issued

• the jeopardy amendment is correct and no further amendment is required
• the jeopardy amendment is inadequate and a further amendment is required
• the jeopardy amendment is excessive and a further amendment is required

There is no need to make any special reference to the jeopardy amendment, as the closure notice will state the amount of tax which should be included in the land transaction return.

If the closure notice amends the land transaction return because the final figure differs from that included in the jeopardy amendment a compliance caseworker may be faced with appeals against either the jeopardy amendment or the closure amendment or both.

Appeal against jeopardy amendment only

If the purchaser does not appeal against the amendment in the closure notice the land transaction return becomes final 30 days after the date of issue. Where an appeal against the jeopardy amendment remains open the purchaser should be contacted in writing requesting that they withdraw their appeal or to confirm that it may be treated as being determined by agreement under FA03/SCH10/PARA37.

If the purchaser refuses to withdraw the appeal or says no agreement is reached, the case must be listed for hearing and formal determination by a Tax tribunal. At the hearing the Tribunal should be asked to determine the appeal in the amount of the closure amendment.

Head Office should be contacted before listing a case for hearing before a Tax Tribunal.

Appeal against closure amendment only

If the purchaser did not appeal against the jeopardy amendment but appeals against the closure amendment the appeal should be dealt with in the same way as with any appeal against an amendment following an enquiry.

The compliance caseworker should try to resolve the matter by agreement but if they are unable to reach an agreement Head Office should be contacted immediately.

From discussion with the purchaser during the enquiry it should be known whether the purchaser is happy with the jeopardy amendment figures or is arguing for a different figure. It is possible that the purchaser feels the figure should be between the jeopardy and the closure amendment figures. If they are arguing for a figure lower than the jeopardy amendment the Tax Tribunal should be made aware that no appeal was made against the jeopardy amendment at the time.

Appeal against both jeopardy amendment and closure amendment

Where the purchaser has appealed against both amendments, they should be invited to withdraw the appeal against the jeopardy amendment because the land transaction return has been superseded by the closure notice.

Withdrawal of an appeal should be in writing and should specify the date of the original appeal and the subject matter of that appeal. The contentious issues should all be dealt with in the appeal against the closure amendment.

The compliance caseworker should try to reach an agreement. If the figures can be agreed, the appeal should be determined against the closure amendment by agreement under FA03/SCH10/PARA37.

If you cannot resolve matters, and both appeals remain open, Head Office should be contacted.