SDLTM82770 - Compliance: Concluding an enquiry

Contract settlements: Expected offer: Means - Time to pay

The compliance caseworker should

• bear in mind that the tax forming the basis of the offer are likely to be overdue
• remember that the purchaser is expected to make every effort to find the money promptly once the liabilities have been agreed
• normally seek payment of the full amount outstanding within 30 days of the date of the letter of acceptance (referred to as the standard offer). Exceptionally, up to 6 months may be allowed, only where the purchaser needs further time to obtain the funds and it would secure a cash offer
• charge interest up to the anticipated date of payment

If payment depends on an uncertain event, such as the sale of a property a compliance caseworker should

• delay asking the purchaser to sign an offer
• allow a period not exceeding six months for the sale provided there is evidence that the property is genuinely on the market
• review the position after six months
• follow the formal route if it appears unlikely the sale will take place in the near future

If the purchaser needs a deferment of longer than six months interest should be included at the enhanced rate used for an instalment offer, on the full amount of the expected offer less payments already made, from the date to which interest was calculated up to the expected date of payment.