(1)Where too little tax has been paid in respect of a chargeable transfer the tax underpaid shall be payable with interest under section 233 above, whether or not the amount that has been paid was that stated as payable in a notice under section 221 above; but subject to section 239 above and to the following provisions of this section.
(2)Where tax attributable to the value of any property is paid in accordance with an account duly delivered to the Board under this Part of this Act and the payment is made and accepted in full satisfaction of the tax so attributable, no proceedings shall be brought for the recovery of any additional tax so attributable after the end of the period of six years beginning with the later of—
(a)the date on which the payment (or in the case of tax paid by instalments the last payment) was made and accepted, and
(b)the date on which the tax or the last instalment became due;
and at the end of that period any liability for the additional tax and any Inland Revenue charge for that tax shall be extinguished.
(3)In any case of fraud, wilful default or neglect by any of the following—
(a)a person liable for the tax, and
(b)in the case of tax chargeable under Chapter III of Part III of this Act (apart from section 79), the person who is the settlor in relation to the settlement,
the period mentioned in subsection (2) above shall be the period of six years beginning when the fraud, default or neglect comes to the knowledge of the Board.
Valid from 01/04/2011
(1)This section applies for the purposes of section 240.
(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.]
Textual Amendments
F1S. 240A inserted (1.4.2011) by Finance Act 2009 (c. 10), s. 99, Sch. 51 para. 12; S.I. 2010/867, art. 2(2)
(1)If it is proved to the satisfaction of the Board that too much tax has been paid on the value transferred by a chargeable transfer or on so much of that value as is attributable to any property, the Board shall repay the excess unless the claim for repayment was made more than six years after the date on which the payment or last payment of the tax was made.
(2)References in this section to tax include references to interest on tax.