CH123200 - Offshore matters: requirement to correct certain offshore tax non-compliance: time limits - whether HMRC can make an assessment to recover tax on 6 April 2017
You must check the date from which these rules apply for the tax or duty you are dealing with. See CH123050 for full details.
Due to the introduction of s36A TMA 1970 by s80 FA 2018, for the tax years 2013-14 and 2014-15 where the loss of tax is brought about carelessly the legislation allows for the assessment to be made no later than 12 years after the end of the year of assessment to which the lost tax relates. So, for 2013-14 tax year we would have until 5 April 2026 to assess the tax liability.
For tax years 2015-16 or later the 12 year time limit to assess an offshore matter or transfer applies without the need to demonstrate careless or deliberate behaviour.
For detailed guidance about the 12 year time limit for offshore matters relating to tax years 2013-14 and later please refer to CH53505 and CH56000.
The guidance below is relevant to any tax years earlier than 2013-14 for which the RTC only applies if HMRC would have been able to raise an assessment to recover the unpaid tax as at 6 April 2017. Normal assessing rules apply to determine whether HMRC is able to raise an assessment on 6 April 2017, see CH56000.
Extension to time limits for raising assessments
However, the RTC legislation allows for a longer period of time to take action to recover any tax that is subject to the RTC rule. This means that for any offshore tax that HMRC could have assessed on 6 April 2017, we will continue to be able to assess that tax until the later of the date on which an assessment could be raised using the normal rules or 5 April 2021.
The following table illustrates the position if a taxpayer has failed to take reasonable care. The rules when a taxpayer has taken reasonable care or has acted deliberately are different but follow the same principle. You should follow these principles but take account of whether the normal time limit is 4 years, 6 years (as below) or 20 years.
| Year(s) | Final date for raising assessment | Explanation |
|---|---|---|
| 2008-09 | 5 April 2015 | HMRC unable to assess on 6 April 2017, therefore outside the scope of the RTC |
| 2009-10 | 5 April 2016 | HMRC unable to assess on 6 April 2017, therefore outside the scope of the RTC |
| 2010-11 | 5 April 2017 | HMRC unable to assess on 6 April 2017, therefore outside the scope of the RTC |
| 2011-12 | 5 April 2021 | HMRC able to assess on 6 April 2017, therefore within the scope of the RTC and the limit extended to 5 April 2021 |
| 2012-13 | 5 April 2021 | HMRC able to assess on 6 April 2017, therefore within the scope of the RTC and the limit extended to 5 April 2021 |
| 2013-14 (or later years) | N/A | Within scope of s36A TMA 1970, please refer to guidance at CH53505 and CH56000. |