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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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Assessing Time Limits: The Time Limits: When the new time limits take effect: Income tax and capital gains tax - transitional provisions

In certain circumstances the change in time limits does not apply until 1 April 2012. The previous time limits continue to apply.

The transitional provisions apply to a person

  1. who has overpaid income tax or capital gains tax, and
  2. who has not been given a notice to make a self assessment return within a year of the end of the tax year. The return may be
* a personal return under TMA70/S8, or
* a partnership return under TMA70/S12AA, or
* a trustee return under TMA70/S8A.

If both these conditions are met we can make an assessment to repay the overpaid tax, or the person can

  • make a self assessment
  • make a claim or election
  • require us under ITEPA02/S711 to give them a notice to make a return

within the previous time limits in order to reclaim the overpaid tax.

These provisions enable everyone who is outside the SA regime further time to reclaim overpaid tax.

The provisions do not allow us further time to make an assessment to recover unpaid income tax or capital gains tax. The new time limits apply from 1 April 2010, see CH51540, to assessments where it is found that

  • tax on income or chargeable gains ought to have been assessed and has not been assessed,
  • any assessment to tax has become insufficient, or
  • any relief which has been given has become excessive.

CH51560 sets out in a table the time limits for those in and those not in the SA regime.

These transitional provisions do not apply to companies.

SI2009 No 403 Article 10