Part 1

Tax credits

Decisions

Decisions on discovery
20
1
Where in consequence of a person’s income tax liability being revised the Board have reasonable grounds for believing that a conclusive decision relating to his entitlement to a tax credit for a tax year (whether or not jointly with another person) is not correct, the Board may decide to revise that decision.
2
A person’s income tax liability is revised—
a
on the taking effect of an amendment of a return of his under section 9ZA(1) of the Taxes Management Act 1970,
b
on the issue of a notice of correction under section 9ZB of that Act amending a return of his (provided that he does not give a notice of rejection before the end of the period of thirty days beginning with the date of issue of the notice of correction),
c
on the amendment of an assessment of his by notice under section 9C of that Act,
d
on the amendment of a return of his under section 12ABA(3)(a) of that Act,
e
on the amendment of a return of his under subsection (6)(a) of section 12ABB of that Act after the correction of a partnership return under that section (provided that the amendment does not cease to have effect by reason of the rejection of the correction under subsection (4) of that section),
f
on the issue of a closure notice under section 28A of that Act making amendments of a return of his,
g
on the amendment of a return of his under section 28B(4)(a) of that Act,
h
on the making of an assessment as regards him under section 29(1) of that Act,
i
on the vacation of the whole or part of an assessment of his under section 32 of that Act,
j
on giving him relief under section 33 of that Act, or
k
on the determination (or settlement) of an appeal against the making, amendment or vacation of an assessment or return, or a decision on a claim for relief, under any of the provisions mentioned in paragraphs (c), (f) and (h) to (j).
3
But no decision may be made under subsection (1)—
a
unless it is too late to enquire into the person’s entitlement under section 19, or
b
after the period of one year beginning when the person’s income tax liability is revised.
4
Where the Board have reasonable grounds for believing that—
a
a conclusive decision relating to the entitlement of a person, or the joint entitlement of persons, to a tax credit for a tax year is not correct, and
b
that is attributable to fraud or neglect on the part of the person, or of either of the persons, or on the part of any person acting for him, or either of them,
the Board may decide to revise that decision.
5
But no decision may be made under subsection (4)—
a
unless it is too late to enquire into the entitlement, or joint entitlement, under section 19, or
b
after the period of five years beginning with the end of the tax year to which the conclusive decision relates.
6
“Conclusive decision”, in relation to the entitlement of a person, or joint entitlement of persons, to a tax credit for a tax year, means—
a
a decision in relation to it under section 18(1), (5), (6) or (9) or 19(3) or a previous decision under this section, or
b
a decision under regulations under section 21 relating to a decision within paragraph (a),
including a decision made on an appeal against such a decision.
7
Subject to any subsequent decision under this section and to regulations under section 21 (and to any appeal), a decision under subsection (1) or (4) in relation to a person or persons and a tax credit for a tax year is conclusive as to the entitlement of the person, or the joint entitlement of the persons, to the tax credit for the tax year and the amount of the tax credit to which he was entitled, or they were jointly entitled, for the tax year.