HMRC SDLT: SDLTM50930 – Procedure: Deferring payment in case of contingent or uncertain consideration FA03/S90: Appeal against HM Revenue & Customs refusal

Deferring Payment in Case of Contingent or Uncertain Consideration

This section of the HMRC internal manual outlines the procedure for deferring payment when consideration is contingent or uncertain, as per FA03/S90. It also covers the process for appealing against HM Revenue & Customs’ refusal.

• Explains the conditions under which payment deferral is applicable.
• Details the appeal process against HMRC’s decision.
• Provides guidance on documentation and evidence required for appeals.
• Clarifies the timeline and steps involved in the appeal process.

Procedure for Deferring Payment Due to Contingent or Uncertain Consideration

Overview

When you make an application to defer stamp duty payment because of contingent or uncertain consideration, you will receive a decision from HM Revenue and Customs (HMRC) in writing. This decision will be sent to the applicant, outlining whether the application has been accepted or refused.

What Happens if Your Application is Refused?

If HMRC refuses your application, the notice you receive will include:

– The reasons for the refusal.
– The total amount of tax that is now due.

You need to pay the tax within 30 days from the date you receive this notice. It’s important to note that interest will start to accrue on this payment if it is not made within 14 days after the effective date of the transaction.

How to Appeal the Refusal

You have the right to appeal against HMRC’s refusal of your application. Here’s what you need to do:

– Send your notice of appeal to HMRC in writing.
– This notice must be sent within 30 days of receiving the refusal decision.
– Your appeal should clearly list the reasons you believe the refusal was incorrect.

Details of the Appeals Procedure

For information about the appeals process, you can visit the relevant HMRC guidance page at Appeals, Reviews, and Tribunals Guidance. This will provide you with more information on how to proceed with your appeal if needed.

Understanding Contingent or Uncertain Consideration

Contingent or uncertain consideration refers to situations where the amount of payment or the timing of the payment depends on future events. This uncertainty can occur in cases such as:

– Agreements where the final purchase price is tied to factors like future profits or performance milestones.
– Transfers of property where the payment depends on the successful transfer of certain assets or completion of specific conditions.

In these cases, if you believe that the payment of stamp duty should be deferred, you will need to complete an application. This application informs HMRC of the situation and requests that the tax payment be delayed until the uncertain factors are resolved.

Submitting Your Application

When you submit your application to defer payment, ensure that you include:

– Relevant details about the transaction.
– Clear evidence supporting your claim of contingent or uncertain consideration.
– Any documentation that may assist HMRC in understanding your situation.

This can help expedite the review process and improve the chances of receiving an approval.

The Decision Process

Once your application is submitted, HMRC will review the details you provided and decide whether to approve or refuse your request for deferral. The time taken for a decision can vary, but you should expect to receive it in a reasonable timeframe.

If your application is successful, you will be informed about the new timeline for your tax payment. If it is refused, follow the guidelines sketched out above to proceed with your appeal.

What Happens After an Appeal is Submitted?

After you submit your notice of appeal:

– HMRC will consider the reasons you provided and reassess the initial decision.
– They may contact you for further information or clarification during this process.
– You will receive a written decision regarding the outcome of your appeal.

If HMRC still refuses your appeal, you may have further options available to you, such as escalating the matter to a tribunal.

Importance of Timeliness

Both the original application and any appeal that you wish to make must be done in a timely manner as specified:

– Pay the refused tax within 30 days of receiving the notice.
– Submit your appeal in writing within 30 days of the refusal notice date to ensure your request is considered.

Failing to act within these timeframes can result in penalties or further complications in your tax obligations.

Additional Resources

If you need assistance or further clarification about your rights and responsibilities, consider the following resources:

– HMRC’s official website for tax guidance.
– Your legal advisor or accountant who can provide professional advice based on your specific circumstances.
– Local advice services that may be able to offer support in understanding tax regulations.

Taking the steps outlined here can help you navigate the process more smoothly and increase your chances of a successful application or appeal regarding deferred payment of stamp duty due to contingent or uncertain considerations.

Useful article? You may find it helpful to read the original guidance here: HMRC SDLT: SDLTM50930 – Procedure: Deferring payment in case of contingent or uncertain consideration FA03/S90: Appeal against HM Revenue & Customs refusal

View all HMRC SDLT Guidance Pages Here