Finance Act 2003

103 Joint purchasers

(1) This section applies to a land transaction where there are two or more purchasers who are or will be jointly entitled to the interest acquired.

(2) The general rules are that—

(a) any obligation of the purchaser under this Part in relation to the transaction is an obligation of the purchasers jointly but may be discharged by any of them,

(b) anything required or authorised by this Part to be done in relation to the purchaser must be done by or in relation to all of them, and

(c) any liability of the purchaser under this Part in relation to the transaction (in particular, any liability arising by virtue of the failure to fulfil an obligation within paragraph (a)), is a joint and several liability of the purchasers.

These rules are subject to the following provisions.

(3) If the transaction is a notifiable transaction, a single land transaction return is required.

(4) The declaration required by paragraph 1(1)(c) of Schedule 10 or paragraph 2(1)(c) of Schedule 11 (declaration that return or self-certificate is complete and correct) must be made by all the purchasers.

(5) If the Inland Revenue give notice of an enquiry into the return or self-certificate—

(a) the notice must be given to each of the purchasers,

(b) the powers of the Inland Revenue as to the production of documents and provision of information for the purposes of the enquiry are exercisable separately (and differently) in relation to each of the purchasers,

(c) any of the purchasers may apply for a direction that a closure notice be given (and all of them are entitled to appear and be heard on the application), and

(d) the closure notice must be given to each of the purchasers.

(6) A Revenue determination or discovery assessment relating to the transaction must be made against all the purchasers and is not effective against any of them unless notice of it is given to each of them whose identity is known to the Inland Revenue.

(7) In the case of an appeal arising from proceedings under this Part relating to the transaction—

(a) the appeal may be brought by any of the purchasers,

(b) notice of the appeal must be given to any of them by whom it is not brought,

(c) the agreement of all the purchasers is required if the appeal is to be settled by agreement,

(d) if it is not settled, any of them are entitled to appear and be heard, and

(e) the decision on the appeal binds all of them.

(8) This section has effect subject to—

• the provisions of Schedule 15 relating to partnerships, and

• the provisions of Schedule 16 relating to trustees.