SDLTM86510 - Compliance: Penalties

Culpability: Defences and responses: Land transaction return mislaid after submission FA03/S82

Where

• a land transaction return delivered to HM Revenue & Customs
• any other document relating to tax made by or provided to HM Revenue & Customs

has been lost or destroyed, or been so defaced or damaged as to be illegible or otherwise uselessFA03/S82 states that HM Revenue & Customs may treat the land transaction return as not having been delivered or the document as not having been received.

If, as a result of the loss, a person is charged with tax and they prove to the satisfaction of the General or Special Commissioners that they have already paid tax in respect of the transaction in question, relief shall be given by reducing the charge or by repayment as the case may require. See SDLTM81830.

If the purchaser maintains they have already forwarded a land transaction return but it was not received at the central processing office, Netherton, or is un-logged, the claim will need to be examined carefully. If there are any doubts about the validity of the claim evidence in support should be requested, such as trouble with postal deliveries, changes of address, absences abroad etc.

When considering a claim to non-receipt of a land transaction return a compliance caseworker should bear in mind and, where necessary explain to the purchaser, the implications of a failure to notify under FA03/SCH10/PARA1.

Liability to penalties under FA03/SCH10 will arise where there is a liability to tax that remains unpaid more than 30 days following the filing date and where no return was received and no notification of chargeability to tax was given.