C18C19C20C30C31C28C29C33C34C36C35C46 PART IV ASSESSMENT AND CLAIMS
Pt. 4 applied (with modifications) (6.4.2004) by The Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682), regs. 1, 80(5)
Pt. 4 applied (6.4.2004) by The Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682), regs. 1, 204(7)
Pt. 4 applied (with modifications) (E.W.) (6.4.2009) by The Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470), regs. 1(1), 34 (with reg. 1(4)(6))
Pt. 4 applied (with modifications) (E.W.) (6.4.2009) by The Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470), regs. 1(1), 62(4) (with reg. 1(4)(6))
Pts. 4, 5, 6 applied (with modifications) (N.I.) (6.4.2009) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2009 (S.R. 2009/128), regs. 1(1), 57(4)
Pts. 4, 5 applied (with modifications) (N.I.) (6.4.2009) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2009 (S.R. 2009/128), regs. 1(1), 29(1)
Pt. 4 applied (with modifications) by Social Security Contributions and Benefits Act 1992 (c. 4), s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 3)
Pt. 4 applied (with modifications) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 12)
Pt. 4 applied (with modifications) (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 79(4)
Pts. 4, 5 applied (with modifications) (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 44
Pts. 4-6 applied (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 9(3)
Time limits
C4C27C1C23C32C37C38C39C46C4734C46Ordinary time limit of F284 years.
C2C3C9C11C13C241
Subject to the following provisions of this Act, and to any other provisions of the Taxes Acts allowing a longer period in any particular class of case, F16an assessment to income tax or capital gains tax may be made at any time F27not more than 4 years after the end of the year of assessment to which it relates.
F461A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
An objection to the making of any assessment on the ground that the time limit for making it has expired shall only be made on an appeal against the assessment.
F443
In this section “assessment” does not include a self-assessment.
34AC46F45Ordinary time limit for self-assessments
1
Subject to subsections (2) and (3), a self assessment contained in a return under section 8 or 8A may be made and delivered at any time not more than 4 years after the end of the year of assessment to which it relates.
2
Nothing in subsection (1) prevents—
a
a person who has received a notice under section 8 or 8A within that period of 4 years from delivering a return including a self-assessment within the period of 3 months beginning with the date of the notice,
b
a person in respect of whom a determination under section 28C has been made from making a self-assessment in accordance with that section within the period allowed by subsection (5)(a) or (b) of that section.
3
Subsection (1) has effect subject to the following provisions of this Act and to any other provisions of the Taxes Acts allowing a longer period in any particular class of case.
4
This section has effect in relation to self-assessments for a year of assessment earlier than 2012-13 as if—
a
in subsection (1) for the words from “not more” to the end there were substituted “on or before 5 April 2017”
, and
b
in subsection (2)(a) for the words “within that period of 4 years” there were substituted “on or before 5 April 2017”
.
35C46F19Time limit: income received after year for which it is assessable
1
Where income to which this section applies is received in a year of assessment subsequent to that for which it is assessable, an assessment to income tax as respects that income may be made at any time F29not more than 4 years after the end of the year of assessment in which it was received.
2
This section applies to—
a
employment income,
b
pension income, and
c
social security income.
C17C5C15C16C21C26C40C41C42C48C4636C46F1F37Loss of tax brought about carelessly or deliberately etc
C25F301
An assessment on a person in a case involving a loss of income tax or capital gains tax brought about carelessly by the person may be made at any time not more than 6 years after the end of the year of assessment to which it relates (subject to subsection (1A) and any other provision of the Taxes Acts allowing a longer period).
1A
An assessment on a person in a case involving a loss of income tax or capital gains tax —
a
brought about deliberately by the person,
c
attributable to arrangements in respect of which the person has failed to comply with an obligation under section 309, 310 or 313 of the Finance Act 2004 (obligation of parties to tax avoidance schemes to provide information to Her Majesty's Revenue and Customs), F43or
d
attributable to arrangements which were expected to give rise to a tax advantage in respect of which the person was under an obligation to notify the Commissioners for Her Majesty's Revenue and Customs under section 253 of the Finance Act 2014 (duty to notify Commissioners of promoter reference number) but failed to do so,
may be made at any time not more than 20 years after the end of the year of assessment to which it relates (subject to any provision of the Taxes Acts allowing a longer period).
1B
In subsections (1) and (1A) references to a loss brought about by the person who is the subject of the assessment include a loss brought about by another person acting on behalf of that person.
F112
F31Where the person mentioned in subsection (1) or (1A) (“the person in default”) carried on a trade, profession or business with one or more other persons at any time in the period for which the assessment is made, an assessment in respect of the profits or gains of the trade, profession or business F32in a case mentioned in F33subsection (1A) or (1B) may be made not only on the person in default but also on his partner or any of his partners.
3
If the person on whom the assessment is made so requires, in determining the amount of the tax to be charged for any chargeable period in any assessment made F35in a case mentioned in subsection (1) F34or (1A) above, effect shall be given to any relief or allowance to which he would have been entitled for that chargeable period on a claim or application made within the time allowed by the Taxes Acts.
F23A
F34
Any act or omission such as is mentioned in section 98B below on the part of a grouping (as defined in that section) or member of a grouping shall be deemed for the purposes of F36subsections (1) and (1A) above to be the act or omission of each member of the grouping.
36AC46F47Loss of tax involving offshore matter or offshore transfer
1
This section applies in a case involving a loss of income tax or capital gains tax, where—
a
the lost tax involves an offshore matter, or
b
the lost tax involves an offshore transfer which makes the lost tax significantly harder to identify.
2
An assessment on a person (“the taxpayer”) may be made at any time not more than 12 years after the end of the year of assessment to which the lost tax relates.
This is subject to section 36(1A) above and any other provision of the Taxes Acts allowing a longer period.
3
Lost income tax or capital gains tax “involves an offshore matter” if it is charged on or by reference to—
a
income arising from a source in a territory outside the United Kingdom,
b
assets situated or held in a territory outside the United Kingdom,
c
income or assets received in a territory outside the United Kingdom,
d
activities carried on wholly or mainly in a territory outside the United Kingdom, or
e
anything having effect as if it were income, assets or activities of a kind described above.
4
Lost income tax or capital gains tax “involves an offshore transfer” if—
a
it does not involve an offshore matter, and
b
the income or the proceeds of the disposal on or by reference to which it is charged, or any part of the income or proceeds, is transferred to a territory outside the United Kingdom before the relevant date.
5
In subsection (4)—
“relevant date” means—
- a
in a case where the taxpayer (or a person acting on the taxpayer's behalf) delivered a return under the Taxes Acts to HMRC for the year of assessment to which the lost tax relates and in which information relating to the lost tax was required to be provided, the date on which the return was delivered, and
- b
in any other case, 31 January in the year of assessment after that to which the lost tax relates;
references to income or proceeds transferred include references to assets derived from or representing the income or proceeds.
6
Where lost tax involves an offshore transfer, the cases in which the transfer makes the lost tax significantly harder to identify include any case where, because of the transfer—
a
HMRC was significantly less likely to become aware of the lost tax, or
b
HMRC was likely to become aware of the lost tax only at a significantly later time.
7
But an assessment may not be made under subsection (2) if—
a
before the time limit that would otherwise apply for making the assessment, HMRC received relevant overseas information on the basis of which HMRC could reasonably have been expected to become aware of the lost tax, and
b
it was reasonable to expect the assessment to be made before that time limit.
8
In subsection (7)(a) “relevant overseas information” means information which is provided to HMRC by an authority in a territory outside the United Kingdom under—
a
any provision of EU law relating to any tax, or
b
an agreement to which the United Kingdom and that territory are parties, with or without other parties.
9
An assessment may also not be made under subsection (2) to the extent that liability to the lost tax arises as a result of an adjustment under Part 4 of TIOPA 2010 (transfer pricing adjustments).
10
In this section “assets” has the meaning given in section 21(1) of the 1992 Act, but also includes sterling.
11
Section 36(2) to (3A) applies for the purposes of this section (as if references to section 36(1) or (1A) were to subsection (1) of this section).”
F737C46 Neglect: income tax and capital gains tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37AC46F4Effect of assessment where allowances transferred.
Where an assessment is made on any person F38in a case falling within section 36(1) or (1A)F48or 36A, the fact that the person’s F12liability to income tax or total income for any year of assessment is assessed as greater than it was previously taken to be shall not affect the validity of F13any F22deduction from net income or tax reduction made in the case of that person’s spouseF23or civil partnerF18... by virtue of F26... F24section 39, 51 or 52 of ITA 2007F18... ; F14and the entitlement in that case of the first-mentioned person for the year in question to any F22deduction from net income or tax reduction shall be treated as correspondingly reduced.
F838C46 Modification of s.37 in relation to partnerships.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F939C46 Neglect: corporation tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C6C22C43C44C4540C46 Assessment on personal representatives.
C7C8C10C12C141
For the purpose of the charge of tax on the executors or administrators of a deceased person in respect of the income, or chargeable gains, which arose or accrued to him before his death, the time allowed by section 34, 35F49, 36 or 36A above shall in no case extend F39more than 4 years after the end ofF15the year of assessment in which the deceased died.
C7C8C10C12C142
F40In a case involving a loss of tax brought about carelessly or deliberately by a person who has died (or another person acting on that person's behalf before that person's death), an assessment on his personal representatives to tax for any year of assessment ending not earlier than six years before his death may be made at any time F41not more than 4 years after the end ofF15the year of assessment in which he died.
3
In F5this section “tax” means income tax or capital gains tax.
F64
Any act or omission such as is mentioned in section 98B below, on the part of a grouping (as defined in that section) or member of a grouping shall be deemed for the purposes of subsection (2) above to be the act or omission of each member of the grouping.
F1041C46 Leave of General or Special Commissioners required for certain assessments.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pt. 4 applied (with modifications) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Working Tax Credit (Payment by Employers) Regulations 2002 (S.I. 2002/2172), regs. 1(1), 14(4)