SDLTM80570 - Compliance: Rights and obligations

Corrections FA03/SCH10/PARA7

FA03/SCH10/PARA7 gives the HM Revenue & Customs the authority to correct obvious errors or omissions by writing to the purchaser. Otherwise HM Revenue & Customs must accept the purchaser’s land transaction return for processing.

The correction can only be made within 9 months of the date of receipt of the land transaction return or amendment to the return.

The purchaser has 3 months from the date of issue of a notice to reject the correction.

Informal enquiries must not be made under the guise of a correction.

A correction should be made in preference to a formal enquiry if

• the error is obvious
• there are no reasons for taking the case up as an enquiry

Corrections not appropriate

An error or mistake can only be corrected if both the error and quantify the amount involved can be identified using reasonable judgement. Otherwise the point may only be pursued by means of a formal enquiry.

If it appears that the purchaser has fraudulently or negligently submitted an incorrect land transaction return, so that the imposition of a penalty needs to be considered, the case should be submitted to the grade 6 compliance manager for consideration before any correction notice is issued.

The compliance manager should consider culpability. If the question of penalties is to be raised the matter must be taken up by means of an enquiry, not as a correction.

If, because of the mistake, a wider enquiry into other aspects of the return is appropriate, the matter should be taken up as part of that wider enquiry.