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HMRC internal manual

Compliance Handbook

Assessing Time Limits: The Time Limits: When the new time limits take effect: Insurance premium tax, aggregates levy, climate change levy and landfill tax - normal time limits and transitional provisions

Normal time limit

The normal 4-year time limit, see CH52100, for making assessments for the purposes of insurance premium tax, aggregates levy, climate change and landfill tax applies from 1 April 2010.

Transitional provisions

Without further provisions, on 1 April 2010 you would be able to make assessments under the 4-year time limit for periods that on 31 March 2010 were out of time under the previous 3-year time limit. Transitional provisions prevent this.

So although the 4-year time limit applies from 1 April 2010, you cannot make assessments under this time limit for relevant events or accounting periods, see CH51700, ending on or before 31 March 2007. Nor can you make an assessment that relates to failures or events giving rise to a penalty that occur on or before 31 March 2007.

From 1 April 2011 the 4-year time limit applies in full.

This table demonstrates how the transitional provisions apply.

Date of assessment Earliest date the assessment can apply to* Reason
28 February 2010 28 February 2007 Date of assessment before 1 April 2010 so 3-year time limit applies.
31 March 2010 31 March 2007 Date of assessment before 1 April 2010 so 3-year time limit applies.
30 April 2010 1 April 2007 4-year time limit cannot extend to assess periods* ending earlier than 1 April 2007.
31 October 2010 1 April 2007 4-year time limit cannot extend to assess periods* ending earlier than 1 April 2007.
31 March 2011 1 April 2007 4-year time limit cannot extend to assess periods* ending earlier than 1 April 2007.
30 April 2011 30 April 2007 4-year time limit applies in full.
31 October 2011 31 October 2007 4-year time limit applies in full.
  • The end of the prescribed relevant event or accounting period or the date of failure or event giving rise to a penalty.

 

 

More guidance on the normal time limit is at CH52100.

These transitional provisions apply equally to claims.

SI2010 No XXX Article Y

SI2010 No XXX Article Y