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HMRC internal manual

Company Taxation Manual

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HM Revenue & Customs
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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 2001, the company receives a notice to deliver a return specifying the period 1 January 2000 to 31 December 2000.
  • Company A submits its company tax return in November 2001. 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 2001, the company receives a notice to deliver a return specifying the period 1 January 2000 to 31 December 2000.
  • 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 2003 completing the enquiry.

Company B has until 15 March 2003 (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 2000.
  • You issue a closure notice on 14 October 2002.
  • Company C fails to amend its return in accordance with the conclusions stated in the closure notice.
  • You amend the return under FA98/SCH18/PARA34 (2) on 20 November 2002.

Paragraph 82(1)(c) allows Company C to make, amend or withdraw capital allowances claims at any time up to 20 December 2002 (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 2002 gives rise to a dispute about a substantial point of law.
  • The House of Lords hear Company D’s appeal against the HMRC amendment of its return (Paragraph 34(2)).
  • The House of Lords give their decision on 19 April 2009.

Company D has until 19 May 2009 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))).

Note: Under CTSA, there is no over-riding six year and three months limit on making, amending or withdrawing capital allowances claims, as there was in CTPF under CAA90/SCHA1/PARA6.

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 and FA98/SCH18/PARA34 (1). This is because Paragraph 82(3) ensures that those other time limits are over-ridden, but only for the purpose of making, amending or withdrawing a capital allowances claim.