Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
, see all updates

Assessing Time Limits: The Time Limits: When the new time limits take effect: Introduction

The new time limits come into force on

  • 1 April 2009 for VAT
  • 1 April 2010 for direct taxes and insurance premium tax, aggregates levy, climate change levy and landfill tax, and
  • 1 April 2011 for stamp duty land tax, stamp duty reserve tax, petroleum revenue tax, excise duty and proceedings to recover inheritance tax

unless transitional provisions apply.

VAT

The normal time limit for making assessments for VAT purposes increases from 3 years to 4 years. Transitional provisions ensure that relevant tax periods, see CH51700, that were out of time for assessing under the 3-year time limit cannot be assessed under the 4-year time limit. You can find more detail in CH51520 and CH51530.

Direct taxes

The normal time limit for making assessments for direct tax purposes reduces from 6 years to 4 years. Transitional provisions apply to some individuals and trustees who are outside Self Assessment. You can find more detail in CH51540 and CH51550.

Insurance premium tax, aggregates levy, climate change levy, landfill tax and excise duty

The normal time limit for making assessments for the purposes of these levies and taxes increases from 3 years to 4 years. Transitional provisions ensure that relevant tax periods, see CH51700, which were out of time for assessing under the 3-year time limit cannot be assessed under the 4-year time limit. You can find more detail in CH51570, CH51575 and CH51585.

Inheritance tax, stamp duty land tax, stamp duty reserve tax and petroleum revenue tax

The normal time limit for making assessments for the purposes of these taxes reduces from 6 years to 4 years. Additionally, for inheritance tax, where no IHT account has been delivered, the normal time limit for recovering tax is 20 years from the relevant date, see CH51700, unless the loss of tax is brought about deliberately, when there remains no time limit.

SI2009 No 403

SI2010 No 867