35(1)An appeal may be brought against—
(a)an amendment of a self assessment under paragraph 10 (amendment during enquiry to prevent loss of tax),
(b)a conclusion stated or amendment made by a closure notice (see paragraph 16),
(c)an HMRC determination under paragraph 18 (determination of tax chargeable if no return delivered),
(d)a discovery assessment (see paragraph 21), or
(e)an assessment under paragraph 22 (assessment to recover excessive repayment).
(2)If an appeal under sub-paragraph (1)(a) against an amendment of a self assessment is made while an enquiry is in progress none of the steps mentioned in paragraph 38(2)(a) to (c) may be taken in relation to the appeal until the enquiry is completed.
36(1)Notice of an appeal under paragraph 35 must be given—
(a)in writing,
(b)within 30 days after the specified date,
(c)to HMRC.
(2)In sub-paragraph (1) “specified date” means—
(a)in relation to an appeal under paragraph 35(1)(a), the date on which the notice of amendment was issued;
(b)in relation to an appeal under paragraph 35(1)(b), the date on which the closure notice was issued;
(c)in relation to an appeal under paragraph 35(1)(c) the date on which the HMRC determination was issued;
(d)in relation to an appeal under paragraph 35(1)(d) or (e), the date on which the notice of assessment was issued.
(3)The notice of appeal must specify the grounds of appeal.
(4)Where a determination has been made under paragraph 18 as to the amount of tax to which a person is chargeable with respect to a single-dwelling interest, the only grounds on which an appeal lies under paragraph 35(1)(c) are—
(a)that the condition in section 94(2)(a) (nature and value of interest) is not met in relation to the interest in question on any day to which the determination relates,
(b)that the person, partnership or scheme that the determination identifies as meeting the ownership condition on one or more days does not meet that condition on any day in the chargeable period,
(c)if the tax is determined to be chargeable by virtue of section 94(5), that a person identified in the determination as one of the responsible partners is not a responsible partner in relation to any tax chargeable for the period in question, or
(d)if the tax is determined to be chargeable by virtue of section 94(6), that the person identified in the determination as the chargeable person in relation to the collective investment scheme concerned is not the chargeable person.
37(1)This paragraph applies in a case where—
(a)notice of appeal may be given to HMRC under this Schedule, but
(b)no notice is given before the relevant time limit.
(2)Notice may be given after the relevant time limit if—
(a)HMRC agree, or
(b)where HMRC do not agree, the tribunal gives permission.
(3)HMRC must agree to notice being given after the relevant time limit if the appellant has requested in writing that HMRC do so and HMRC are satisfied—
(a)that there was reasonable excuse for not giving the notice before the relevant time limit, and
(b)that the request has been made without unreasonable delay.
(4)If a request of the kind mentioned in sub-paragraph (3) is made, HMRC must notify the appellant whether or not HMRC agree to the request.
(5)In this paragraph “relevant time limit”, in relation to notice of appeal, means the time before which the notice must to be given (disregarding this paragraph).
38(1)This paragraph applies if notice of appeal has been given to HMRC.
(2)In such a case—
(a)the appellant may notify HMRC that it requires them to review the matter in question (see paragraph 39),
(b)HMRC may notify the appellant of an offer to review the matter in question (see paragraph 40), or
(c)the appellant may notify the appeal to the tribunal.
(3)If the appellant notifies the appeal to the tribunal, the tribunal is to determine the matter in question.
(4)See paragraphs 43 and 44 for provision about the circumstances in which an appeal may be notified to the tribunal after a review has been required by the appellant or offered by HMRC.
(5)This paragraph does not prevent the matter in question from being dealt with in accordance with paragraph 46(1) and (2) (settling of appeals by agreement).
39(1)If the appellant notifies HMRC that it requires them to review the matter in question, HMRC must—
(a)notify the appellant of HMRC’s view of the matter in question within the relevant period, and
(b)review the matter in question in accordance with paragraph 41.
(2)Sub-paragraph (1) does not apply if—
(a)the appellant has already given a notification under this paragraph in relation to the matter in question,
(b)HMRC have given a notification under paragraph 40 in relation to the matter in question, or
(c)the appellant has notified the appeal to the tribunal.
(3)In this paragraph “the relevant period” means—
(a)the period of 30 days beginning with the day on which HMRC receive the notification from the appellant, or
(b)such longer period as is reasonable.
40(1)Sub-paragraphs (2) to (5) apply if HMRC notify the appellant of an offer to review the matter in question.
(2)The notification must include a statement of HMRC’s view of the matter in question.
(3)If the appellant notifies HMRC within the acceptance period that it accepts the offer, HMRC must review the matter in question in accordance with paragraph 41.
(4)If the appellant does not accept the offer in accordance with sub-paragraph (3)—
(a)HMRC’s view of the matter in question is treated as if it were contained in a settlement agreement (see paragraph 46(1)); but
(b)paragraph 46(3) (right to withdraw from agreement) does not apply in relation to that notional agreement.
(5)Sub-paragraph (4) does not apply to the matter in question if, or to the extent that, the appellant notifies the appeal to the tribunal.
(See paragraph 44 for the circumstances in which the appellant may do so after accepting HMRC’s offer of a review).
(6)HMRC may not take the action mentioned in sub-paragraph (1) at any time if before that time—
(a)HMRC have given a notification under this paragraph in relation to the matter in question,
(b)the appellant has given a notification under paragraph 39 in relation to the matter in question, or
(c)the appellant has notified the appeal to the tribunal.
(7)In this paragraph “acceptance period” means the period of 30 days beginning with the date of the document by which HMRC notify the appellant of the offer to review the matter in question.
41(1)This paragraph applies if HMRC are required by paragraph 39 or 40 to review the matter in question.
(2)The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.
(3)For the purpose of sub-paragraph (2), HMRC must, in particular, have regard to steps taken before the beginning of the review—
(a)by HMRC in deciding the matter in question, and
(b)by any person in seeking to resolve disagreement about the matter in question.
(4)The review must take account of any representations made by the appellant at a stage which gives HMRC a reasonable opportunity to consider them.
(5)The review may conclude that HMRC’s view of the matter in question is to be—
(a)upheld,
(b)varied, or
(c)cancelled.
(6)HMRC must notify the appellant of the conclusions of the review and their reasoning within—
(a)the period of 45 days beginning with the relevant day, or
(b)such other period as may be agreed.
(7)In sub-paragraph (6) “relevant day” means—
(a)in a case where the appellant required the review, the day when HMRC notified the appellant of HMRC’s view of the matter in question,
(b)in a case where HMRC offered the review, the day when HMRC received notification of the appellant’s acceptance of the offer.
(8)If HMRC do not give notice of the conclusions of the review within the period specified in sub-paragraph (6), the review is treated as having concluded that HMRC’s view of the matter in question is upheld.
(9)If sub-paragraph (8) applies, HMRC must notify the appellant of the conclusions which the review is treated as having reached.
42(1)If HMRC give notice of the conclusions of a review (see paragraph 41)—
(a)the conclusions are to be treated as if they were contained in a settlement agreement (see paragraph 46(1)), but
(b)paragraph 46(3) (withdrawal from agreement) does not apply in relation to that notional agreement.
(2)Sub-paragraph (1) does not apply to the matter in question if, or to the extent that, the appellant notifies the appeal to the tribunal (see paragraphs 43 and 44).
43(1)Where HMRC have notified an appellant under paragraph 39(1)(a) of their view of a matter to which an appeal under paragraph 35 relates, the appellant—
(a)may not notify the appeal to the tribunal before the beginning of the post-review period;
(b)may notify the appeal to the tribunal after the end of that period only if the tribunal gives permission.
(2)Except where sub-paragraph (3) applies, the post-review period is the period of 30 days beginning with the date of the document in which HMRC give notice of the conclusions of the review in accordance with paragraph 41(6).
(3)If the period specified in paragraph 41(6) ends without HMRC having given notice of the conclusions of the review, the post-review period is the period that—
(a)begins with the day following the last day of the period specified in paragraph 41(6), and
(b)ends 30 days after the date of the document in which HMRC give notice of the conclusions of the review in accordance with paragraph 41(9).
44(1)Where HMRC have offered to review the matter to which a notice of an appeal under paragraph 35 relates, the right of the appellant at any time to notify the appeal to the tribunal depends on whether or not the appellant has accepted the offer at that time.
(2)If the appellant has accepted the offer, the appellant—
(a)may not notify the appeal to the tribunal before the beginning of the post-review period;
(b)may notify the appeal to the tribunal after the end of that period only if the tribunal gives permission.
(3)If the appellant has not accepted the offer, the appellant—
(a)may notify the appeal to the tribunal within the acceptance period;
(b)may notify the appeal to the tribunal after the end of that period only if the tribunal gives permission.
(4)In this paragraph—
“acceptance period” has the same meaning as in paragraph 40;
“post-review period” has the same meaning as in paragraph 43.
(a)“matter in question” means the matter to which an appeal relates;
(b)a reference to a notification is to a notification in writing.
(2)In paragraphs 38 to 44, a reference to the appellant includes a person acting on behalf of the appellant except in relation to—
(a)notification of HMRC’s view under paragraph 39(1)(a),
(b)notification by HMRC of an offer of review (and of their view of the matter) under paragraph 40,
(c)notification of the conclusions of a review under paragraph 41(6) or (9).
(3)But if a notification falling within any of the paragraphs of sub-paragraph (2) is given to the appellant, a copy of the notification may also be given to a person acting on behalf of the appellant.
46(1)In relation to an appeal of which notice has been given under paragraph 36, “settlement agreement” means an agreement between the appellant and an officer of Revenue and Customs that is—
(a)entered into before the appeal is determined, and
(b)to the effect that the decision appealed against should be upheld without variation, varied in a particular manner or discharged or cancelled.
(2)Where a settlement agreement is entered into in relation to an appeal, the consequences are to be the same (for all purposes) as if, at the time the agreement was entered into, the tribunal had decided the appeal and had upheld the decision without variation, varied it in that manner or discharged or cancelled it, as the case may be.
(3)Sub-paragraph (2) does not apply if, within 30 days from the date when the settlement agreement was entered into, the appellant gives notice in writing to HMRC that it wishes to withdraw from the agreement.
(4)Where a settlement agreement is not in writing—
(a)sub-paragraph (2) does not apply unless the fact that an agreement was entered into, and the terms agreed, are confirmed by notice in writing given by HMRC to the appellant or by the appellant to the HMRC, and
(b)the references in sub-paragraphs (2) and (3) to the time when the agreement was entered into are to be read as references to the time when the notice of confirmation was given.
(5)Sub-paragraph (6) applies where notice of an appeal has been given under paragraph 36 and—
(a)the appellant notifies HMRC, orally or in writing, that the appellant does not wish to proceed with the appeal, and
(b)HMRC do not, within 30 days after that notification, give the appellant notice in writing indicating that they are unwilling that the appeal should be withdrawn.
(6)Sub-paragraphs (1) to (4) have effect as if, at the date of the appellant’s notification, the appellant and an officer of Revenue and Customs had agreed (orally or in writing, as the case may be) that the decision under appeal should be upheld without variation.
(7)References in this paragraph to an agreement being entered into with an appellant, and to the giving of notice or notification by or to the appellant, include references to an agreement being entered into, or notice or notification being given by or to, a person acting on behalf of the appellant in relation to the appeal.
47(1)Where there is an appeal under paragraph 35, the tax charged by the amendment or assessment in question remains due and payable as if there had been no appeal.
(2)Sub-paragraph (1) is subject to paragraphs 48 and 49.
48(1)If the appellant has grounds for believing that the amendment or assessment overcharges the appellant to tax, or as a result of the conclusion stated in the closure notice the tax charged on the appellant is excessive, the appellant may—
(a)first apply by notice in writing to HMRC within 30 days of the specified date for a determination by them of the amount of tax the payment of which should be postponed pending the determination of the appeal, and
(b)if the appellant does not agree with a determination made by HMRC under paragraph (a), refer the application for postponement to the tribunal within 30 days from the date of the document notifying HMRC’s determination.
(2)An application under sub-paragraph (1)(a) must state the amount believed to be overcharged to tax and the grounds for that belief.
(3)An application may be made more than 30 days after the specified date if there is a change in the circumstances of the case as a result of which the appellant has grounds for believing that it is overcharged to tax by the decision appealed against.
(4)If, after an application under sub-paragraph (1) has been determined, there is a change in the circumstances of the case as a result of which either party has grounds for believing that the amount determined has become either excessive or insufficient, that party may (if the parties cannot agree on a revised determination) apply to the tribunal for a revised determination of that amount.
(5)An application under sub-paragraph (4) may be made at any time before the determination of the appeal.
(6)An application under this paragraph is to be subject to the relevant provisions of Part 5 of the Taxes Management Act 1970 (see, in particular, section 48(2)(b) of that Act).
(7)The amount of tax of which payment is to be postponed pending the determination of the appeal is the amount (if any) by which it appears that there are reasonable grounds for believing that the appellant is overcharged.
(8)Where an application under this paragraph has been determined, section 163 has effect in relation to any tax of which payment is not postponed as if—
(a)the tax were payable in accordance with an assessment under paragraph 22 issued on the date on which the application was determined, and
(b)there was no appeal against that assessment.
(9)In this paragraph “specified date” has the meaning given by paragraph 36.
49(1)If the appellant and an officer of Revenue and Customs agree that payment of an amount of tax should be postponed pending the determination of the appeal, the consequences are to be the same (for all purposes) as if the tribunal had, at the time when the agreement was entered into, made a direction to the same effect as the agreement.
This is without prejudice to the making of a further agreement or further direction.
(2)Where the agreement is not in writing—
(a)sub-paragraph (1) does not apply unless the fact that an agreement was entered into, and the terms agreed, are confirmed by notice in writing given by the officer of Revenue and Customs to the appellant or by the appellant to that officer, and
(b)the reference in sub-paragraph (1) to the time when the agreement was entered into is to be read as a reference to the time when notice of confirmation was given.
(3)References in this paragraph to an agreement being entered into with an appellant, and to the giving of notice to or by the appellant, include references to an agreement being entered into, or notice being given to or by, a person acting on behalf of the appellant in relation to the appeal.
50(1)This paragraph applies where an appeal under paragraph 35(1) has been notified to the tribunal.
(2)If the tribunal decides that the appellant is overcharged by a self assessment or any other assessment, the assessment must be reduced accordingly.
(3)If the tribunal does not so decide, the assessment is to stand good.
(4)If it appears to the tribunal that the appellant is undercharged to tax by a self assessment or any other assessment, the assessment must be increased accordingly.
51The determination of the tribunal in relation to any proceedings under this Part of this Schedule is to be final and conclusive except as otherwise provided in—
(a)sections 9 to 14 of the Tribunals, Courts and Enforcement Act 2007, or
(b)this Part of this Act.
52(1)On the determination of an appeal under paragraph 35 any tax overpaid must be repaid.
(2)On the determination of an appeal under paragraph 35, section 163(payment of tax) has effect in relation to any relevant tax as if—
(a)the tax were payable in accordance with an assessment under paragraph 22 issued on the date on which HMRC issues to the appellant a notice of the total amount payable in accordance with the determination, and
(b)there had been no appeal against that assessment.
(3)The reference in sub-paragraph (2) to “relevant tax” is to any tax payable in accordance with the determination, so far as it is tax—
(a)the payment of which had been postponed, or
(b)which would not have been charged by the amendment or assessment if there had been no appeal.
53(1)Where a party to an appeal to the tribunal under paragraph 35 makes a further appeal, tax is to be payable or repayable in accordance with the determination of the tribunal or court (as the case may be), even though the further appeal is pending.
(2)But if the amount charged by the assessment is altered by the order or judgment of the Upper Tribunal or court, then—
(a)if too much tax has been paid, the amount overpaid must be refunded, with any interest allowed by the order or judgment, and
(b)if too little tax has been charged, the amount undercharged is due and payable at the end of the 30 days beginning with the date on which HMRC issue to the other party a notice of the total amount payable in accordance with the order or judgment.
54(1)In this Part of this Schedule “the tribunal” means—
(a)the First-tier Tribunal, or
(b)where determined by or under Tribunal Procedure Rules, the Upper Tribunal.
(2)Sub-paragraph (1) does not apply so far as sub-paragraph (3) requires otherwise.
(3)Where the question in any dispute on any appeal under paragraph 35(1) is of the market value of any single-dwelling interest, that question is to be determined on a reference by—
(a)the Upper Tribunal, if the land is in England and Wales;
(b)the Lands Tribunal for Scotland, if the land is in Scotland;
(c)the Lands Tribunal for Northern Ireland, if the land is in Northern Ireland.