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Part IU.K. Customs and Excise and Value Added Tax

Chapter IIU.K. Value Added Tax

Modifications etc. (not altering text)

AppealsU.K.

24 Amendments of section 40 of the principal Act.U.K.

(1)In section 40 of the principal Act (appeals), at the end of subsection (1) (decisions which are appealable) there shall be added the following paragraphs—

(o)any liability to a penalty or surcharge by virtue of any of sections 13 to 17 and 19 of the Finance Act 1985;

(p)the amount of any penalty, interest or surcharge specified in an assessment under section 21 of that Act;

(q)the making of an assessment on the basis set out in section 22(4) of that Act.

(2)After subsection (1) of that section there shall be inserted the following subsection—

(1A)Without prejudice to section 13(4) of the Finance Act 1985, nothing in subsection (1)(p) above shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty, interest or surcharge except in so far as it is necessary to reduce it to the amount which is appropriate under sections 13 to 19 of that Act.

(3)In subsection (2) of that section (appeals not to be entertained unless all required returns have been made and the amounts payable have been paid) after the word “and” there shall be inserted “except in the case of an appeal against a decision with respect to the matter mentioned in subsection (1)(n) above, unless he”.

(4)In subsection (3) of that section, for the words “paragraph (b) or (m)” there shall be substituted “any of paragraphs (b), (m), (o) and (p)”.

(5)After subsection (3) of that section there shall be inserted the following subsection—

(3A)Where, on an appeal against a decision with respect to any of the matters mentioned in paragraph (m) above,—

(a)it is found that the amount specified in the assessment is less than it ought to have been, and

(b)the tribunal gives a direction specifying the correct amount,

the assessment shall have effect as an assessment of the amount specified in the direction and that amount shall be deemed to have been notified to the appellant.