SDLTM82920 - Compliance: Concluding an enquiry

Contract settlements: Interviews: The interview

In the majority of stamp duty land tax enquiries a settlement interview will not be necessary.

All open points will normally have been cleared and the disclosure certificate obtained before the settlement interview is arranged.

After clearing any remaining open points, normally a compliance caseworker will

• briefly review the history of the enquiry, mentioning in particular any matter, whether for or against the purchaser, which they have taken into account in mitigating the penalties
• confirm agreement of figures of tax
• establish the required degree of culpability
• explain the maximum penalty (unless this is thought unnecessary), the purchaser should be reminded of the Board's practice, as set out in leaflet IR160, and asked whether there are any mitigating factors which have not already been mentioned. (The compliance caseworker must be prepared to listen and to revise their penalty loading accordingly.)
• adjust the loading, if necessary. The compliance caseworker can indicate the level of penalty which they, by reference to the Board's guidance and their own experience, consider appropriate
• then invite the purchaser to make an offer

Except in a case which can be settled locally, it must be explained to the purchaser that any offer must be submitted for consideration on behalf of the Board of HM Revenue & Customs and that acceptance or rejection rests there.

Unless the purchaser promptly accepts the advice the compliance caseworker will probably have to justify their assessment of the appropriate penalty loading.

It will normally be possible to point out that the suggested figure represents a substantial reduction of the maximum penalties under Finance Act 2003 for which formal action could be taken.

The compliance caseworker should be firm in their opinion of the amount expected and would need convincing arguments to make them change their view. Nevertheless, the impression should not be given that an amount which is the only possible acceptable offer is being dictated. The offer must be freely negotiated and the compliance caseworker must have demonstrated their readiness to listen to the purchaser's contentions and give them due weight.

In any case which must be submitted any indication that a compliance caseworker is firmly committed to any particular figure should be avoided, or that the compliance caseworker is prepared to recommend an offer for acceptance.

The Board must be left with a completely free hand to consider an offer on its merits, without having to make apparent any internal difference of opinion.

If the purchaser refuses to make an offer (as he is entitled to do) HM Revenue & Customs powers to assess, charge interest and make penalty determinations (subject to his right of appeal) must be explained again.

In no circumstances whatever should any possible liability to criminal proceedings be mentioned during the discussion of a pecuniary settlement.

If a purchaser's advisers should suggest, in discussing a possible settlement, that prosecution is a possible alternative, the compliance caseworker should emphatically disassociate themselves from the adviser’s remarks. Any such exchange should be included in the notes of the interview.