CG13730 - Claims and elections: Procedures for making a claim or election

Throughout this manual, all legislative references are to the Taxation of Chargeable Gains Act 1992 (TCGA 1992) unless otherwise stated. 

 

SACM3000 explains how claims should be made. 

 

How should a claim be made? 

Most claims and elections that can be made in a return, or by amending a return, must be so made when a notice calling for the return has been given. If a claim or election is made other than in a return, for example if one is made before notice calling for a return was given, or after the time allowed to amend the return has passed, the rules in Schedule 1A of the Taxes Management Act 1970 and Schedule 1B of the Taxes Management Act 1970 will apply. 

 

When is a claim/ election made? 

A claim or election is made when it is received by HMRC – not when it is signed, or dated, or posted. 

 

What information does a claim/ election need to include? 

Some claims and elections have a specified form or format which must be used. Others don’t have a specified form or format and can be made in any form the customer chooses. 

The relevant capital gains manual pages relating to a specific claim or election will provide further detail about the information that needs to be provided, but as a rule a claim or election must state both: 

  • the customer’s name and their Unique Customer Reference (UTR) 
  • the claim or election that is being made 

A claim or election must also give sufficient information to give effect to the claim or election. This is likely to include:  

  • the tax years the claim or election relates to 
  • the assets subject of the claim or election 
  • quantification of the claim or election, see SACM3025 
  • any values to be used 

These lists may not be exhaustive. It is important to consider the statute and guidance to determine the information that needs to be provided for the claim or election that is being made. 

If the claim is made as part of the return, the white space notes should be used to provide details of the claim. 

If the claim is sent outside of a tax return, it must also include a declaration to be signed by the claimant or the person claiming on their behalf, which states that the particulars given in the claim are correct and complete to the best of their knowledge and belief. Where relevant, HMRC would also expect the claim to be supported by a document which shows that the tax charge to which the claim relates has been paid. 

See SACM4000 for information about what records and information must be kept when making a claim. 

It is not possible to make a provisional claim. SACM5000 provides more details about this and covers the one exception to the rule. It should, however, be noted that roll-over relief allows for a provisional declaration to be made, see CG60310. 

See Schedule 1B of the Taxes Management Act 1970 and SACM11000 (or CTM90630 for companies) for information about claims involving two or more years. 

 

Consequential claims after assessment and amendment 

The legislation allows a customer to make various out-of-time actions where HMRC makes a discovery assessment or amends a return in an enquiry closure notice, see SACM9000 or CTM90650 for companies. 

 

Amending or correcting claims 

Claims may be amended or ‘corrected’ by the person making the claim or by HMRC, see SACM3040. 

 

Making enquiries into claims or elections 

See SACM8000. 

 

Withdrawing an irrevocable election 

Some elections are irrevocable. Withdrawal of such elections can only be allowed by the Board under its collection and management function at section 1 of the Taxes Management Act 1970.  If HMRC staff receive a request for a withdrawal of an irrevocable election they should find out why the customer wishes to withdraw the election and seek support from the Capital Gains Technical Team.