This consultation closed on 16 March 2004.
Consultation on the Stamp Duty Land Tax (Appeals) Regulations 2004
Part 4 of Finance Act 2003 introduced stamp duty land tax, to be administered by the Inland Revenue. Schedule 17 of that Act gives powers to the Lord Chancellor to make regulations by statutory instrument to deal with stamp duty land tax appeals and other proceedings relating to stamp duty land tax. The regulations to be made under Schedule 17 are enclosed together with a summary paper, which explains both the background to Part 4 and the main provisions of these regulations.
We are also taking the opportunity to modify Regulation 10 of the General Commissioners (Jurisdiction And Procedure) Regulations 1994 (SI 1812/1994) to bring that regulation in line with regulation 10 of the Special Commissioners (Jurisdiction And Procedure) Regulations 1994 (SI 1811/1994). The Inland Revenue will then be subject to the same notice requirement to provide information to the Tribunal as any other party to an appeal.
We are inviting comments on these regulations by Tuesday 16 March as part of a consultation process. The Government has already consulted on the modernisation of Stamp Duty. This is, therefore, a limited consultation of specific interested bodies outside the Code of Practice on Written Consultation. I enclose a list of those being consulted about these regulations. If there are any other organisations you think should be consulted, please let me know as soon as possible.
Unless you express confidentiality in your response, we may make your response available under the Open Government Code. Confidential responses will be included in any statistical summary of numbers of comments received and views expressed.
I look forward to receiving your comments.
Yours sincerely,
Duncan Rutty
Background
Stamp Duty Land Tax was introduced, following consultation, in Part 4 of Finance Act 2003. With a few transitional exceptions Stamp Duty Land Tax applies to land transactions completed after 1 December 2003. Stamp Duty Land Tax replaces the old stamping of documents with a self-assessed tax return in respect of the land transaction. The purchaser becomes liable to pay the tax and The Inland Revenue have powers to make enquiries into returns and other matters. The Inland Revenue powers are based on income tax self-assessment. Purchasers have the right of appeal against Inland Revenue decisions and the appeals will be to the existing tax tribunals, the General Commissioners and the Special Commissioners.
The regulations provide a statutory framework for Commissioners proceedings. They-
provide specific rules for stamp duty land tax
apply the existing General and Special Commissioners regulations in SIs 1994/1811 and 1994/1812
apply sections in Part V of the Taxes Management Act 1970 where appropriate, for the purpose of appeals from decisions of the General and Special Commissioners to the courts.
The General Commissioners are an independent lay tax tribunal, which covers geographical areas of the United Kingdom.
The Special Commissioners are a specialist tribunal comprising legally qualified commissioners who usually deal with more complex tax cases.
Decisions of both bodies of Commissioners are in general subject to a right of appeal to the High Court (in England) or the Court of Session (in Scotland) or the Court of Appeal in Northern Ireland.
Summary of regulations
The regulations are in 4 Parts.
Part 1 contains general provisions: citation, commencement and interpretation.
Part 2 contains regulations, which provide for the jurisdiction of Commissioners in relation to appeals and other matters.
Most appeals will be to the General Commissioners subject to a right of election for the appeal to be heard by the Special Commissioners.
Questions involving valuation of land where appropriate will be referred to the Lands Tribunal for determination of that issue only as part of the appeal.
Appeals and other proceedings before the General Commissioners will normally be heard by the division covering the address of the land which is the subject of the transaction in dispute, but the regulations also provide for a purchaser's right of election for the appeals to be heard by the division covering the purchaser's place of residence or his business address. There are special provisions governing such elections where the purchaser is a company or partnership, and in certain other cases.
Appeals and other proceedings can also be assigned to other divisions by agreement. Appeals and other proceedings commenced by the Inland Revenue will be assigned in accordance with the regulations governing assignment of proceedings other than those commenced by the Inland Revenue and the Inland Revenue shall have the same options as apply to appellants or other parties to the proceedings. Where there is more than one purchaser and those purchasers chose different divisions to hear the same appeal or other proceedings or fail to exercise their right of election the Board of Inland Revenue can direct that the appeal should be heard by a particular division.
Part 2 also provides for :
the transfer of appeals to the Special Commissioners where there is a right of election;
the transfer of lengthy and complex appeals to the Special Commissioners;
limitations to the extent to which determinations of General Commissioners can be questioned;
assignment to Special Commissioners of matters involving the valuation of shares of securities;
the quorum of General Commissioners;
the finality of determinations;
how a notice of election should be given; and
in particular, for the consequences of any determination by the General Commissioners or Special Commissioners in respect of assessments and self-assessments in relation to appeals.
These rules are all based on similar rules in the 1970 Act.
Part 3 makes amendments to the General Commissioners (Jurisdiction And Procedure) Regulations 1994 (SI 1994/1812) and the Special Commissioners (Jurisdiction And Procedure) Regulations (SI 1994/1811), that are necessary for the purposes of stamp duty land tax and in particular, by amendment to the definition of proceedings, apply those regulations to:
appeals to both the General Commissioners and Special Commissioners under Part 4 of the Finance Act 2003 and any other enactments relating to stamp duty land tax ; and
to any other proceedings before the General and Special Commissioners which, under Part 4 of the Finance Act 2003 and any other enactments relating to stamp duty land tax, are to be heard and determined in the same way as appeals under that Part or the other enactments ; or
any other proceedings to the General and Special Commissioners under Part 4 of the Finance Act 2003 and any other enactments relating to stamp duty land tax.
Regulation 24 amends regulation 10 of the General Commissioners (Jurisdiction and Procedure) Regulations 1994 (Power of Tribunal to obtain information) bringing the position of the General Commissioners in line with that of the Special Commissioners.
Part 4 provides for appeals from the General Commissioners and Special Commissioners to the courts and therefore applies, in a modified form, sections 48, 56, 56A, 58 and 118(1) of the 1970 Act (regulation 26).
Part 4 also applies, in a modified form, sections 56A and 58 of the 1970 Act to provide for a right of appeal to the courts from a decision of the Special Commissioners in relation to questions in dispute during an enquiry under Paragraph 19 of Schedule 10 or Paragraph 12 of Schedule 11 to Finance Act 2003 (regulation 27).
Draft Regulations
Draft regulations
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Consultation List
Association of Clerks to the Commissioners
CBI
Chartered Institute of Taxation
Council on Tribunals
Court Service - Tribunals Directorate
Federation of Small Businesses
Finance and Tax Tribunal
General Council of the Bar
Inland Revenue
Law Society
Law Society of Scotland
National Assembly for Wales
National Association of General Commissioners
Northern Ireland Court Service - Civil Policy Branch
Scottish Executive Justice Department - Civil and International Division