SDLTM84250 - Compliance: Assessments and Revenue determinations

Revenue determinations FA03/SCH10/PARA25

Some of the project work undertaken by the RIAT may identify potential transactions which should have been notified more than 12 months previously.

The RIAT will create a case and pass it to a compliance manager within an office. Once the case has been allocated by the compliance manager the compliance caseworker will write to the liable person to request a land transaction return.

If a land transaction return has not been received within a reasonable period the compliance caseworker will need to consider whether to make a Revenue determination under FA03/SCH10/PARA25. A Revenue determination can only be made with the authority of the compliance manager.

A determination under this paragraph may only be made if no land transaction return has been delivered by the filing date. If a land transaction return is delivered a FA03/SCH10/PARA28 discovery assessment cannot be made.

A Revenue determination can be made in any case where a transaction has been identified but no land transaction return has been filed, provided it is made within the period of 6 years starting from the effective date of the transaction.

The determination will automatically be superseded by a self-assessment once the relevant land transaction return is filed, either within the 6 year period or within 12 months of the date of the determination if later.

If the land transaction return is not submitted within this period then the tax charge created by the FA03/SCH/PARA25 determination stands and any further action that might be necessary to protect HM Revenue & Customs would have to be under FA03/SCH10/PARA31 (extended time limits). See SDLTM84290.

Appeals

For transactions where the effective date was on or after 8 December 2004, an appeal may be brought against a Revenue determination under this paragraph.

This right of appeal is limited to the following grounds only.

• The purchase to which the determination relates did not take place.
• The interest in the land to which the determination relates has not been purchased.
• The contract for the purchase of the interest to which the determination relates has not been substantially performed.
• The transaction is not notifiable.

Notice of appeal must be delivered to the officer by whom the determination was issued within 30 days of the date on which the determination was issued and may be accompanied by an application to postpone payment of tax (FA03/SCH10/PARA35/36/39).

Otherwise there is no right of appeal against a determination, nor can the purchaser seek postponement of the tax due.