SDLTM86130 - Compliance: Penalties

Legislation: Formal notice to deliver a land transaction return FA03/SCH10/PARA5: Daily penalties

Often the most appropriate way of encouraging the submission of a late land transaction return is to make a Revenue determination under FA03/SCH10/PARA25.

But issuing a formal notice under FA03/SCH10/PARA5 should also be considered if it appears that a purchaser required to deliver a land transaction return in respect of a chargeable transaction has failed to do so, and that the filing date has passed.

If the purchaser does not comply with the notice within the specified period HM Revenue & Customs may ask the Commissioners to impose a daily penalty.

This will not be a routine procedure, but should be considered in worthwhile cases.

The notice issued to the purchaser should give details of

• the transaction to which the notice relates
• the period for complying with the notice, which must not be less than 30 days from the date of issue of the notice

If the purchaser does not comply with the notice within the specified period an application can be made to either the General or Special Commissioners for a direction under FA03/SCH10/PARA5.

Such action should only be undertaken with the approval of a Grade 6 officer who should also set the daily rate when approving action leading to the first tranche of daily penalties.

It is not proposed that these powers will be used initially. Further guidance will be issued in due course. In the meantime, if this action is considered appropriate, submission should be made to Head Office via a Grade 6 officer.