Part 2: Duty to Keep and Preserve Records
391.This Part of the Schedule deals with preservation of records.
392.Paragraph 5 sets out the duty of a person who is required to deliver a return to keep and preserve records, for the longer of:
six years from the end of the chargeable period,
the end of any enquiry, or
the end of the enquiry window (this may be after six years if the return is submitted very late).
Records to be kept must include:
all relevant documents relating to any relevant transaction, for example the contract of purchase, including financial records related to the transaction, and
records relating to the valuation of the dwelling.
393.Paragraph 6 allows for the preservation of information instead of original records. It permits records to be kept in an alternative form (such as microfiche or an electronic facsimile) as long as the information they contain is preserved.
394.Paragraph 7 provides a penalty for failure to keep and preserve records of a maximum of £3,000, with the exception that no penalty is incurred if the facts which would have been demonstrated by the records is provided to HMRC by other documentary evidence.
