Finance Act 2003, Schedule 10, paragraph 12

Notice of enquiry

SCHEDULE 10 Stamp duty land tax: returns, enquiries, assessments and appeals

12 (1) The Inland Revenue may enquire into a land transaction return if they give notice of their intention to do so (“notice of enquiry”)—

(a) to the purchaser,

(b) before the end of the enquiry period.

(2) The enquiry period is the period of nine months—

(a) after the filing date, if the return was delivered on or before that date;

(b) after the date on which the return was delivered, if the return was delivered after the filing date;

(c) after the date on which the amendment was made, if the return is amended under paragraph 6 (amendment by purchaser).

[F946This is subject to the following qualification.F946]

[F947 (2A) If—

(a) the Inland Revenue give notice, within the period specified in sub-paragraph (2), of their intention to enquire into a land transaction return delivered under section 80 (adjustment where contingency ceases or consideration is ascertained), 81 (further return where relief withdrawn) [[F948,F949 or 81AF949] (return or further return in consequence of later linked transaction) F950 ...F948] , and

(b) it appears to the Inland Revenue to be necessary to give a notice under this paragraph in respect of an earlier land transaction return F951 ...,

a notice may be given notwithstanding that the period referred to in sub-paragraph (2) has elapsed in relation to that earlier [F952 returnF952] .F947]

(3) A return that has been the subject of one notice of enquiry may not be the subject of another, except one given in consequence of an amendment (or another amendment) of the return under paragraph 6.

Cases considering Schedule 10, paragraph 12 7

Project Blue Limited v Commissioners for Her Majesty’s Revenue and Customs

[2018] UKSC 30 · 13 June 2018

Authorised HMRC to inquire into the land transaction return concerning the disclosed sale. (see paras [82]-[83])

Giovanni Scatola & Ors v The Commissioners for HMRC

[2025] UKUT 156 (TCC) · 28 May 2025Interprets

Interprets the enquiry-notice requirement objectively. The notice must enable a reasonable taxpayer, in context, to understand which specific return or returns HMRC intend to examine. (see paras [16], [50]-[60])

Redmount Trust Company Limited v The Commissioners for HMRC

[2023] UKUT 68 (TCC) · 16 March 2023Interprets

The provision was interpreted as allowing HMRC to enquire into a land transaction return submitted in the prescribed form, including a protective return filed where the purchaser is uncertain whether a return is required (see paras [35]; [40]-[48]; [53]). The provision was applied to the timing of HMRC’s enquiry. The Tribunal held that time starts to run when a protective return is delivered (see paras [35]; [56]-[57]).

What each judgment says about Schedule 10, paragraph 12 is in the case-law panel in the full Act.

Amendments and notes

7 notes from legislation.gov.uk

Amendments

  1. F946Words in Sch. 10 para. 12(2) added (with effect in accordance with reg. 1 of the amending S.I.) by The Stamp Duty Land Tax (Land Transaction Returns) Regulations 2004 (S.I. 2004/3208), regs. 1, 4(2)(a)
  2. F947Sch. 10 para. 12(2A) inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Stamp Duty Land Tax (Land Transaction Returns) Regulations 2004 (S.I. 2004/3208), regs. 1, 4(2)(b)
  3. F948Words in Sch. 10 para. 12(2A) substituted (with effect in accordance with Sch. 22 para. 9 of the amending Act) by Finance Act 2011 (c. 11), Sch. 22 para. 7
  4. F949Words in Sch. 10 para. 12(2A)(a) substituted (with effect in accordance with s. 7(3) of the amending Act) by Finance (No. 2) Act 2024 (c. 12), s. 7(2)(a)(iv) (with s. 7(4)-(10))
  5. F950Words in Sch. 10 para. 12(2A)(a) omitted (with effect in accordance with s. 7(3) of the amending Act) by virtue of Finance (No. 2) Act 2024 (c. 12), s. 7(2)(a)(iv) (with s. 7(4)-(10))
  6. F951Words in Sch. 10 para. 12(2A)(b) omitted (with effect in accordance with s. 89(4) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 17 para. 8(a)
  7. F952Word in Sch. 10 para. 12(2A) substituted (with effect in accordance with s. 89(4) of the amending Act) by Finance Act 2021 (c. 26), Sch. 17 para. 8(b)