C13 PART IVC14 ASSESSMENT AND CLAIMS
See also Income and Corporation Taxes Act 1988 (c. 1), s. 252 (assessments to rectify excessive set-off etc. of advance corporation tax or tax credit)
Claims
C1C242 Procedure for making claims.
1
Where any provision of the Taxes Acts provides for relief to be given, or any other thing to be done, on the making of a claim, this section shall, unless otherwise provided, have effect in relation to the claim C3.
2
Subject to any provision in the Taxes Acts for a claim to be made to the Board, every claim shall be made to an inspector.
3
An appeal may be brought against the decision of the inspector or the Board on a claim by giving written notice to the inspector or the Board as the case may be within thirty days of receipt of written notice of that decision:
Provided that the time for appealing against the Board’s decision—
a
under section [278 F1] of the principal Act (personal reliefs for non-residents), or
b
on a question of residence, ordinary residence or domicile, or
4
Schedule 2 to this Act shall have effect as respects the Commissioners to whom an appeal lies under this section.
M15
A claim shall be in such form as the Board may determine and the form of claim—
a
shall provide for a declaration to the effect that all the particulars given in the form are correctly stated to the best of the knowledge and belief of the person making the claim, and
b
may require—
i
a return of profits to be made in support of the claim, and
ii
any such particulars of assets acquired as may be required in a return by virtue of subsections (2) and (3) of section 12 of this Act C4,
and, in the case of a claim made by or on behalf of a person who is not resident, or who claims to be not resident or not ordinarily resident or not domiciled, in the United Kingdom, the inspector or the Board may require a statement or declaration in support of the claim to be made by affidavit. F2
5A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2
M26
A claim may be made on behalf of an incapacitated person by his trustee, guardian, tutor or curator; and a person who under Part VIII of this Act has been charged with tax on the profits of another person may make any such claim for relief by discharge or repayment of that tax C5.
M37
The inspector or the Board may give effect to any claim by discharge of tax or, on proof to the satisfaction of the inspector or the Board that any tax has been paid by the claimant by deduction or otherwise, by repayment of tax C6.
8
Where a claim has been made and the claimant subsequently discovers that an error or mistake has been made in the claim, the claimant may make a supplementary claim within the time allowed for making the original claim.
9
On an appeal on a claim, the Commissioners may vary the decision appealed against whether or not the variation is to the advantage of the appellant.
10
Where it is necessary, in order to give effect to a claim, or as a result of allowing a claim, to make any adjustment by way of an assessment on any person, the assessment shall not be out of time if it is made within one year of the final determination of the claim.
For the purposes of this subsection, a claim shall not be deemed to be finally determined until the amount recoverable under the claim can no longer be varied, whether by any Commissioners on appeal or by the order of any court.
10A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2
M411
In this section“profits”—
a
in relation to income tax, means income,
b
in relation to capital gains tax, means chargeable gains,
c
in relation to corporation tax, means profits as computed for the purposes of that tax.
C743 Time limit for making claims.
C8C9C15C10C11C121
Subject to any provision of the Taxes Acts prescribing a longer or shorter period , no claim for relief under the Taxes Acts shall be allowed unless it is made within six years from the end of the chargeable period to which it relates F5... .
2
A claim (including a supplementary claim) which could not have been allowed but for the making of an assessment to income tax or capital gains tax after the year of assessment to which the claim relates may be made at any time before the end of the year of assessment following that in which the assessment was made.
F63
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43AF9Further assessments: claims etc.
1
This section applies where—
a
by virtue of section 29(3) of this Act F7or section 412(3) of the principal Act an assessment is made on any person for a chargeable period, and
b
the assessment is not made for the purpose of making good to the Crown any loss of tax attributable to his fraudulent or negligent conduct or the fraudulent or negligent conduct of a person acting on his behalf.
2
Without prejudice to section 43(2) above but subject to section 43B below, where this section applies—
a
any relevant claim, election, application or notice which could have been made or given within the time allowed by the Taxes Acts may be made or given at any time within one year from the end of the chargeable period in which the assessment is made, and
b
any relevant claim, election, application or notice previously made or given may at any such time be revoked or varied—
i
in the same manner as it was made or given, and
ii
by or with the consent of the same person or persons who made, gave or consented to it (or, in the case of any such person who has died, by or with the consent of his personal representatives),
except where by virtue of any enactment it is irrevocable.
F82A
In subsection (2) above, “claim, election, application or notice” does not include an election under section 257BA of the principal Act (elections as to transfer of married couple’s allowance).
3
For the purposes of this section and section 43B below, a claim, election, application or notice is relevant in relation to an assessment for a chargeable period if—
a
it relates to that chargeable period or is made or given by reference to an event occurring in that chargeable period, and
b
it or, as the case may be, its revocation or variation has or could have the effect of reducing any of the liabilities mentioned in subsection (4) below.
4
The liabilities referred to in subsection (3) above are—
a
the increased liability to tax resulting from the assessment,
b
any other liability to tax of the person concerned for—
i
the chargeable period to which the assessment relates, or
ii
any chargeable period which follows that chargeable period and ends not later than one year after the end of the chargeable period in which the assessment was made.
5
Where a claim, election, application or notice is made given, revoked or varied by virtue of subsection (2) above, all such adjustments shall be made, whether by way of discharge or repayment of tax or the making of assessments or otherwise, as are required to take account of the effect of the taking of that action on any person’s liability to tax for any chargeable period.
6
The provisions of this Act relating to appeals against decisions on claims shall apply with any necessary modifications to a decision on the revocation or variation of a claim by virtue of subsection (2) above.
43BF10Limits on application of section 43A.
1
If the effect of the exercise by any person of a power conferred by section 43A(2) above—
a
to make or give a claim, election, application or notice, or
b
to revoke or vary a claim, election, application or notice previously made or given,
would be to alter the liability to tax of another person, that power may not be exercised except with the consent in writing of that other person, or where he has died, his personal representatives.
2
Where—
a
a power conferred by subsection (2) of section 43A above is exercised in consequence of an assessment made on a person, and
b
the exercise of the power increases the liability to tax of another person,
that section shall not apply by reason of any assessment made because of that increased liability.
3
In any case where—
a
one or more relevant claims, elections, applications or notices are made, given, revoked or varied by virtue of the application of section 43A above in the case of an assessment, and
b
the total of the reductions in liability to tax which, apart from this subsection, would result from the action mentioned in paragraph (a) above would exceed the additional liability to tax resulting from the assessment,
the excess shall not be available to reduce any liability to tax.
4
Where subsection (3) above has the effect of limiting either the reduction in a person’s liability to tax for more than one period or the reduction in the liability to tax of more than one person, the limited amount shall be apportioned between the periods or persons concerned—
a
except where paragraph (b) below applies, in such manner as may be specified by the inspector by notice in writing to the person or persons concerned, or
b
where the person concerned gives (or the persons concerned jointly give) notice in writing to the inspector within the relevant period, in such manner as may be specified in the notice given by the person or persons concerned.
5
For the purposes of paragraph (b) of subsection (4) above the relevant period is the period of 30 days beginning with the day on which a notice under paragraph (a) of that subsection is given to the person concerned or, where more than one person is concerned, the latest date on which such notice is given to any of them.
Pt. 4 (ss. 29-43B) applied (with modifications) (6.4.1993) by The Income Tax (Sub-contractors in the Construction Industry) Regulations 1993 (S.I. 1993/743), reg. 14(2) (revoked (6.4.2007) by S.I. 2005/2045, Sch. 2)