Refund Requests and Additional Payments

General

Section 22(1)(e) of the 2012 Act establishes a general application in relation to fees. It provides, inter alia, that an application will meet the condition if either (i) such fee is payable for registration is paid, or (ii) arrangements satisfactory to the Keeper are made for payment of the fee.

Therefore, where an appropriate fee for an application is paid that application will comply with Section 22(1)(e) of 2012 Act. The 2012 Act doesn't contain any other provision that authorises rejection of an application for fee related reasons.

However, it is possible for an application to be accepted by the keeper even though the incorrect fee has been paid. It won't usually be clear from the application itself that the wrong fee has been charged. When this happens, the submitting agent will typically contact the Keeper to make an additional payment or to request a refund.

Such requests might be received at different points in the registration process, as follows:

A request for a refund after intake but before despatch.
The submission of additional payment after intake but before despatch.
A request for a refund after despatch.
The submission of additional payment after despatch.

The approach that can be taken to these different situations is examined below.

Useful Links

Rejection Policy and Procedures

Rejection and Withdrawal Fees

Registers of Scotland (Fees) Order 2014

Fees

This will happen when an agent has overpaid the registration fee. In this situation, the agent has actually paid the correct fee (and has therefore conformed to the application condition to do so), but has also paid an extra - and unnecessary - sum of money. Accordingly, the application cannot be rejected in terms of section 22(1)(e) of the 2012 Act, but in principle we can refund the extra sum paid.

Therefore, where a request for a refund is received based on an overpayment, it should be passed to a team leader or referral officer to consider the request and its background. Provided an appropriate explanation is supplied by the agent, the refund should be made.

The application workdesk on the LRS should be updated to reflect any new information supplied by the agent.

Process: A refund letter should be completed and e-mailed to the Finance "Refund" folder together with a note of the relevant uid number, copy of the agents request and any relevant referrals.

This will happen when the incorrect fee wasn't paid but it wasn't clear that this was the case. In this situation, where an additional payment is submitted by an agent and accompanied by an explanation about the background, the additional sum should be accepted.

The application workdesk on the LRS should be updated to reflect any new information supplied by the agent.

Process: The request should be e-mailed to Finance, who will administer payment of the additional fee if this is to be paid by direct debit. If payment is by cheque, the cheque should be forwarded to Finance marked for the attention of the Cashier.

Provided the Keeper receives suitable evidence as to why a registration fee has been overpaid, the Keeper should refund the over-paid sum.

Details of the request should be e-mailed to a senior adviser, who will consider if an update to the application work desk is appropriate.

Process: A refund letter should be completed and e-mailed to the Finance "Refund" folder together with a note of the relevant uid number, copy of the agents request and any relevant referrals.

This will happen when the incorrect fee wasn't paid but it wasn't clear that this was the case. In this situation, where an additional payment is submitted by an agent and accompanied by an explanation about the background, the additional sum should be accepted.

Details of the request should be e-mailed to a senior adviser, who will consider if an update to the application work desk is appropriate.

Process: The request should be e-mailed to Finance, who will administer payment of the additional fee if this is to be paid by direct debit. If payment is by cheque, the cheque should be forwarded to Finance marked for the attention of the Cashier.

LBTT implications

There would be no LBTT issue with either post-intake refunds/additional fee payments or post-despatch refunds/additional fee payments given that the details matched-up between an LBTT Return and a registration application when that registration application was taken on. The Keeper can be satisfied that she has complied with her statutory duties in terms of S43 of the Land and Buildings Transaction Tax (Scotland) Act 2013. Where an agent recognises that there has been a discrepancy in the valuation of the property for which a registration application has been completed, they can amend the LBTT Return for that transaction in order to amend the value of the transaction declared therein and to pay/reclaim any extra tax due.

Authorisation of refunds

All refunds should be authorised by a team leader or referral officer.