CG13750 - Claims and elections: Time limits
Time limit for making a claim
The legislation has a general default rule giving the time within which a claim may be made in the absence of any specific time limit see section 43 of the Taxes Management Act 1970 and SACM3035, or paragraph 55 of Schedule 18 of the Finance Act 1998 and CTM90610 for companies. However, many claims have a specific time limit. Where a specific time limit applies to a claim or election, guidance is given in the relevant part of the capital gains manual.
Time limit for making an election
There is no general time limit for making an election but the legislation governing an election may include a specific time limit. If there is no specific time limit for an election then, in theory, an election may be made at any time. But there will in practice usually be an implicit time limit, because once it is too late to revise a customer’s liabilities by adopting an alternative basis of computing a chargeable gain, any election will have no practical effect.
Extended time limits for claims and elections
In certain circumstances claims and elections may be made after the normal statutory time limit has passed. The time limit may be extended where:
an assessment is made by HMRC, or
a self-assessment is amended by HMRC, or
an enquiry is concluded by a contract settlement.
When a discovery assessment under section 29 of the Taxes Management Act 1970 is made, customers may get a second chance to make some claims and elections, see SACM9005, or CTM90645 to CTM60665 for companies.