SCHEDULES
SCHEDULE 51Time limits for assessments, claims etc
Stamp duty land tax
14
Part 4 of FA 2003 (stamp duty land tax) is amended as follows.
I215
1
Schedule 10 (returns, enquiries, assessments and appeals) is amended as follows.
2
In paragraph 25(3)
(determination of tax chargeable if no return delivered), for “six years” substitute “
4 years
”
.
3
In paragraph 27(2)(a)
(determination superseded by actual self-assessment), for “six years” substitute “
4 years
”
.
4
Paragraph 31 (time limit for assessment) is amended in accordance with sub-paragraphs (5) to (8).
5
In sub-paragraph (1), for “six years” substitute “
4 years
”
.
6
For sub-paragraph (2) substitute—
2
An assessment of a person to tax in a case involving a loss of tax brought about carelessly by the purchaser or a related person may be made at any time not more than 6 years after the effective date of the transaction to which it relates (subject to sub-paragraph (2A)).
2A
An assessment of a person to tax in a case involving a loss of tax—
a
brought about deliberately by the purchaser or a related person,
b
attributable to a failure by the person to comply with an obligation under section 76(1) or paragraph 3(3)(a), 4(3)(a) or 8(3)(a) of Schedule 17A, or
c
attributable to arrangements in respect of which the person has failed to comply with an obligation under section 309, 310 or 313 of the Finance Act 2004 (obligation of parties to tax avoidance schemes to provide information to Her Majesty's Revenue and Customs),
may be made at any time not more than 20 years after the effective date of the transaction to which it relates.
7
In sub-paragraph (4)(a), for “three years” substitute “
4 years
”
.
8
After sub-paragraph (5) insert—
6
In this paragraph “related person”, in relation to a purchaser, means—
a
a person acting on behalf of the purchaser, or
b
a person who was a partner of the purchaser at the relevant time.
9
After paragraph 31 insert—
Losses brought about carelessly or deliberately
31A
1
This paragraph applies for the purposes of paragraph 31.
2
A loss of tax is brought about carelessly by a person if the person fails to take reasonable care to avoid bringing about that loss.
3
Where—
a
information is provided to Her Majesty's Revenue and Customs,
b
the person who provided the information, or the person on whose behalf the information was provided, discovers some time later that the information was inaccurate, and
c
that person fails to take reasonable steps to inform Her Majesty's Revenue and Customs,
any loss of tax brought about by the inaccuracy is to be treated as having been brought about carelessly by that person.
4
References to a loss of tax brought about deliberately by a person include a loss of tax brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.
10
In paragraph 34(2)
(relief in case of mistake in return), for “six years” substitute “
4 years
”
.
I116
1
Paragraph 8 of Schedule 14 (time limit for determination of penalties) is amended as follows.
2
In sub-paragraph (2)—
a
for “six years” substitute “
4 years
”
, and
b
after “began to be incurred” insert “
(“the relevant date”)
”
.
3
In sub-paragraph (3), insert at the end “(subject to any of the following provisions of this paragraph allowing a longer period)”.
4
After sub-paragraph (4) insert—
4A
Where a person is liable to a penalty in a case involving a loss of tax brought about carelessly by the person (or by another person acting on that person's behalf), the penalty may be determined, or the proceedings may be brought, at any time not more than 6 years after the relevant date (subject to sub-paragraphs (4B) and (5)).
4B
Where a person is liable to a penalty in a case involving a loss of tax—
a
brought about deliberately by the person (or by another person acting on that person's behalf),
b
attributable to a failure by the person to comply with an obligation under section 76(1) or paragraph 3(3)(a), 4(3)(a) or 8(3)(a) of Schedule 17A, or
c
attributable to arrangements in respect of which the person has failed to comply with an obligation under section 309, 310 or 313 of the Finance Act 2004 (obligation of parties to tax avoidance schemes to provide information to Her Majesty's Revenue and Customs),
the penalty may be determined, or the proceedings may be brought, at any time not more than 20 years after the relevant date.
4C
Paragraph 31A of Schedule 10 (losses brought about carelessly or deliberately) applies for the purpose of this paragraph.