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HMRC internal manual

Company Taxation Manual

Corporation Tax self-assessment (CTSA): capital allowances: CT Pay and File (CTPF) - time limit - late claims

You should not normally admit claims to capital allowances made outside the normal time limit. When considering such a claim you should bear the following in mind. TMA70/S108 ‘Responsibility of company officers’ says that:

‘Everything to be done by a company under the Taxes Acts shall be done by the company acting through the proper officer of the company or, except where a liquidator has been appointed for the company, through such other person as may for the time being have the express, implied or apparent authority of the company to act on its behalf for the purpose’.

This means that unless you have specifically been told that a particular person or class of persons does not have the company’s authority, anyone who acts for the company under its apparent authority can do so. The most obvious example of someone who has the company’s apparent authority is the company’s agent.

Thus, you should not accept a late claim on the grounds that the sole director of the company was incapacitated at a critical time, if the company’s claims are usually made by the accountant in submitting the CT computations.

Note: Only officers in Grade 6 and above may extend the time limit on their own authority. They should consult CTIAA (Technical) before considering formal refusal on behalf of HMRC using the template found by clicking the Technical Help button in the left bar of this manual.

They may approve an extension if the company could not reasonably have been aware of the need to make the claim by the date the time limit expired, for reasons beyond its control. Examples of this are when:

  • the profits of the company are not determined by the six year point, and
  • they are determined subsequently in a figure higher than could have been foreseen when the conditional claims were made,
  • anticipated group relief falls short of expectations.

Do not accept as circumstances beyond the company’s control:

  • a change of mind,
  • hindsight showing that a different combination of claims might be advantageous,
  • oversight or error, whether on the part of the company or its advisers,
  • absence or indisposition of an officer or employee of the company unless:
    • the absence or illness arose at a critical time which delayed the making of the claim,
    • in the case of absence, there was good reason why the person was unavailable at the critical time,
    • there was no other person who could have made the claim on behalf of the company within the normal time.

HMRC policy on admitting claims made outside the normal time limit has been published as SP11/93 and SP5/01.

When a late claim is not admitted the company may, nevertheless, be able to claim mistake relief under TMA70/S33. The claim is made by reference to the capital allowances not allowed, if the relevant conditions are met (see IM3753a - IM3753c).

You should submit any doubts or queries regarding the application of SP11/93 or SP5/01, or TMA70/S33, to CTIAA (Technical).