SALF610 - Claims, Elections and Notices: settlement of an enquiry

Amendment of claims following an enquiry

Para 7(1) (2) (3) and (4), Schedule 1A

A formal enquiry into a claim (or a subsequent amendment) will be treated as complete when the officer of the Board issues the taxpayer with a notice to that effect. Any such notice must state the officer’s conclusions regarding the claim.

The claimant cannot amend the claim while an enquiry is under way or after the 12-month period for making an amendment. The officer’s conclusions must be based on all the information obtained during the enquiry and include any legitimate adjustments in the claimant’s favour.

Where the claim is for the discharge or repayment of tax the officer must state in the closure notice that no amendment is needed, or he must amend the claim to the figure that is, in his opinion, correct. For other claims he must allow the claim or disallow it wholly or in part

Application for direction that an enquiry is complete

Para 7(5), Schedule 1A

It may be that during the course of an enquiry a claimant considers that the officer of the Board has no reasonable grounds for continuing the enquiry. In any such case, the claimant may apply to the Tribunal for a direction requiring an officer of the Board to issue a closure notice.

Appeals against amendments by the officer of the Board

Para 9, Schedule 1A

The claimant has a right of appeal against any conclusion, decision, or amendment by an officer of the Board under para 7(2) and (3), Schedule 1A.

Any appeal must be made in writing, normally within 30 days after the date on which the closure notice was issued. However, in the case of:

  • claims under ICTA88/S278 or Section 56 or 460 of ITA 2007 (personal reliefs for non- residents)
  • questions of residence, ordinary residence or domicile
  • application of ICTA88/S615 (3) (pension funds for service abroad)

the time allowed is 3 months.

Giving effect to amendments made after completion of an enquiry

Para 8, Schedule 1A

Once an enquiry has been completed, and amendments have been notified under either para 7(2) or para 7(3), Schedule 1A, an officer of the Board is required to give effect to the claim as amended.

This may mean:

  • that an assessment is made on the claimant
  • that tax is discharged or repaid (subject to proof of payment)
  • that, in the case of a partnership, an assessment, or, as the case may be, a discharge or repayment of tax is made for each partner.

All such adjustments must be made within 30 days after the date on which the closure notice making the amendments was issued.

Para 9(4), Schedule 1A

The same ‘giving effect’ procedures apply following a decision by the tribunal on an appeal against an amendment by an officer of the Board.