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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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Information & Inspection Powers: Information Notices: Taxpayer Notice: Specific rules: Annual tax on enveloped dwellings

A ‘taxpayer notice’ is a written notice to a person requiring them to provide information or produce documents reasonably required to check their tax position.

Various rules and conditions have to be met before you can give a taxpayer notice to a person requiring them to provide information or produce documents reasonably required to check their annual tax on enveloped dwellings (ATED) position.

The general restrictions, see CH22100, general rules, see CH23220, and rules about approval and appeals in CH23520, apply. There are also specific rules for taxpayer notices following receipt of an ATED return.

If a person has made an ATED return, or a return of the adjusted chargeable amount, you can only give a taxpayer notice to check the person’s ATED for that period if one or more of the following conditions apply:

  • There is an open enquiry into the return, claim or amendment to a claim.
  • You have reason to suspect, see CH23560, that

    • an amount that ought to have been assessed to ATED for the chargeable period may not have been assessed, or
    • an assessment to ATED for the chargeable period may be or have become insufficient, or
    • relief from ATED given in respect of the chargeable period may be or have become excessive.
  • The notice is given for the purpose of obtaining any information or document that is also required for the purpose of checking that person’s position regarding a tax other than ATED. But there is an important exception, see the next paragraph.

FA08/SCH36/PARA21B