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HMRC internal manual

Capital Gains Manual

Claims and elections: distinction between a claim and an election

Claims and elections have different functions and are not dealt with in exactly the same way. The main differences are:

  • there is no general time limit for elections comparable to the time limit for claims for relief provided by TMA70/S43 (1) and FA98/SCH18/PARA55 (see CG13750), but normally the provision conferring the right of election will specify a period (or time limit) within which it must be made - often two years from the end of the accounting period under CTSA or 12 months from the 31 January next following the year of assessment under ITSA;
  • in general an election is concerned with, and alters, only the basis on which the taxpayer’s liability is to be computed: it is not directly concerned with the amount of his or her liability (which can be computed only when the correct basis has been established);
  • in certain circumstances there are provisions that extend the time limit for claims for a relief or allowance but not for elections, see CG13751.

For general guidance on claims, elections, etc. see SACM3000 onwards (ITSA) and CTM90600 onwards (CTSA).