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HMRC internal manual

Company Taxation Manual

Corporation Tax self-assessment (CTSA): capital allowances: time limit - extended in enquiry

FA98/SCH18/PARA82 (1)(b) - (d)

When you enquire into a company tax return, the time limit for making a claim to capital allowances is extended so that companies can make, amend or withdraw claims up to the last of the following dates:

  • 30 days after the issue of a notice of closure of the enquiry,
  • when you amend a return following an enquiry:
    • 30 days after the you issue the HMRC amendment,

 

  • when there is an appeal against your HMRC amendment:
    • 30 days after the date on which the appeal is finally determined.

Example 1

Shows the time limit for making a capital allowances claim when there is no enquiry into the return.

  • Company A, makes up its accounts to 31 December each year.
  • On 21 January 2011, the company receives a notice to deliver a return specifying the period 1 January 2010 to 31 December 2010.
  • Company A submits its company tax return in November 2011. You do not enquire into the return.

Paragraph 82 (1)(a) allows Company A to make, amend or withdraw capital allowances claims at any time up to 31 December 2002 (the first anniversary of its filing date).

Example 2

Shows the time limit for making capital allowances claims when there is an enquiry into the return.

  • Company B makes up accounts to 31 December each year.
  • On 21 January 2011, the company receives a notice to deliver a return specifying the period 1 January 2010 to 31 December 2010.
  • Company B submits its company tax return in November 2001.
  • You open an enquiry into the return.
  • You issue a closure notice under FA98/SCH18/PARA32 (1) on 13 February 2013 completing the enquiry.

Company B has until 15 March 2013 (30 days following closure of the enquiry) to make, amend or withdraw capital allowances claims (Paragraph 82 (1)(b)).

Example 3

Shows the time limit for making capital allowances claims when there is an enquiry into the return when the enquiry ends with an HMRC amendment.

  • You enquire into Company C’s return for the accounting period ended 30 June 2010.
  • You issue a closure notice and amend the return under FA98/SCH18/PARA34 (2) on 20 November 2012.

Paragraph 82(1)(c) allows Company C to make, amend or withdraw capital allowances claims at any time up to 20 December 2012 (30 days after notice of the amendment was issued).

Example 4

Shows the time limit for making capital allowances claims when there is an enquiry into the return and the company appeals against an HMRC amendment.

  • Company D’s return for its accounting period ended 31 December 2012 gives rise to a dispute about a substantial point of law.
  • The Supreme Court hears Company D’s appeal against the HMRC amendment of its return (Paragraph 34(2)).
  • The Supreme Court gives its decision on 19 April 2019.

Company D has until 19 May 2019 to make, amend or withdraw claims to capital allowances (30 days after the date on which the appeal is finally determined (Paragraph 82(1)(d))).

Some of the dates shown in the examples above are later than the normal final dates for a taxpayer amendment of a return under FA98/SCH18/PARA15. This is because the time limits otherwise applicable to amendment of a company tax return do not apply to the extent that it makes, amends or withdraws a claim for capital allowances within the time allowed by Paragraph 82(3).