CTM95400 - CTSA: Revenue determination: Superseded by SA

FA98/SCH18/PARA40

A self assessment contained in a return supersedes a Revenue determination provided the company delivers it not later than the later of:

  • the time limit for making the Revenue determination CTM95390,

and

  • twelve months after the date of the Revenue determination.

The statute recognises that the return may not cover the same period as the Revenue determination.

Provided:

  • the return covers a period ending in or at the end of the period specified in the notice to deliver,

and

  • that period is (or is treated in the return as) an accounting period,

the return supersedes a Revenue determination made under FA98/SCH18/PARA36 or 37 for a period that ends in, or at the end of the period specified in the same notice to deliver.

If you made a Revenue determination for more than one period ending in or at the end of the specified period, the return supersedes the Revenue determination for the period it most overlaps.

The following examples demonstrate how and when a Revenue determination is superseded by an SA.

  • Example 1 concerns a company with an established tax history.
  • Example 2 concerns a newly registered company that was dormant throughout the period specified in the notice to deliver a return.
  • Example 3 concerns a newly registered company that does not tell you of its accounting intentions until more than twelve months after the date on which it was incorporated.

Example 1

  • Company A, a company with an established tax history, makes up its accounts to 31 December annually.
  • A notice to deliver, specifying the period 1 January 2019 to 31 December 2019 is issued on 21 January 2020.
  • The filing date for the return is 31 December 2020.
  • You make a Revenue determination for that period in July 2021.
  • In October 2021 the company makes a return for the period 1 January 2019 to 31 December 2019.
  • The self assessment replaces the Revenue determination.

Example 2

  • Company B is incorporated on 15 January 2019.
  • Company B gives you no information about its activities or intended accounting date.
  • You assume that the first accounting period of Company B runs from 15 January 2019 to 14 January 2020.
  • A notice to deliver, specifying that period is issued on 21 February 2020 and the filing date is 14 January 2021.
  • You make a Revenue determination in September 2021 for the period.
  • The company makes a return for the accounting period 15 January 2019 to 14 January 2020 in November 2021 showing that it was dormant throughout.
  • The return is not a return for an accounting period so it does not contain a SA. By making the return the company has shown that it has no accounting period ending in or at the end of the period specified in the notice to deliver and the Revenue determination is of no effect.

Example 3

  • Company C is incorporated on 1 September 2018.
  • In the absence of any further information, you assume that its first accounting period runs from 1 September 2018 to 31 August 2019.
  • A notice to deliver, specifying that period (specified period 1) is issued on 21 September 2019 and you record the filing date as 31 August 2020.
  • In October 2019 Company C tells you that it did not start to trade until 28 September 2018 and that it will draw up its first accounts to 31 December 2019.

a) Based on this information further notices to file are issued as follows:

  • in November 2019 specifying the period 1 September 2019 to 27 September 2019 (specified period 2),
  • in January 2020 specifying the period 28 September 2019 to 31 December 2019 (specified period 3),
  • in January 2021 specifying the period 1 January 2020 to 31 December 2020 (specified period 4).

b) By July 2021 Company C has made no return. You make Revenue determinations for the periods:

  • 28 September 2018 to 27 September 2019,

and

  • 28 September 2019 to 31 December 2019.

c) In October 2021 Company C submits accounts for the 19-month period 1 September 2018 to 31 March 2020 with returns for:

  • the accounting period 28 September 2018 to 27 September 2019,

and

  • the accounting period 28 September 2019 to 31 March 2020.

d) The self assessment:

  • for the period to 27 September 2019 supersedes the Revenue determination for the period from 28 September 2018 to 27 September 2019 because they both end in or at the end of the same specified period - FA98/SCH18/PARA40 (1)(a),
  • for the period 28 September 2019 to 31 March 2020 does not supersede the Revenue determination for the period 28 September 2019 to 31 December 2019. This is because the return and the determination do not end in (or at the end of) the same specified period. The determination ends at the end of specified period 3 but the return ends in specified period 4.

The company does not have an accounting period that ended in specified period 3 so the Revenue determination for that period is of no effect - FA98/SCH18/PARA36 (6).