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: Consequential claims: What consequential claims can be made

This guidance only applies to direct tax. It does not apply to VAT, insurance premium tax, aggregates levy, climate change levy or landfill tax.

The type of consequential claim, see CH55100, that can be made depends upon the reason why the assessment or amendment is being made to recover lost tax.

If the additional liability is not as a result of a person’s careless or deliberate behaviour, the legislation will allow both claims and elections to be made out of time.

However, if the additional liability is a result of the person’s careless or deliberate behaviour, only claims may be allowed.

For example

TMA70/S36 (3) - making good a loss of income tax or capital gains tax due to careless or deliberate behaviour - only allows a person to make a consequential claim and does not apply to elections, whilst

TMA70/S43A (2) - assessment of income tax or capital gains tax not due to careless or deliberate behaviour - allows a person to make consequential claims, elections, applications or notices.

FA98/SCH18/PARA62 - assessment of corporation tax not due to careless or deliberate behaviour - allows companies to make consequential claims, elections, applications and notices, whilst

FA98/SCH18/PARA65 - making good a loss of corporation tax due to careless or deliberate behaviour - only allows companies to make consequential claims or applications.

For more guidance on what constitutes careless behaviour see CH53400 and for deliberate behaviour see CH53700.

You will find more information about claims in SACM9000 (income tax and capital gains tax) and CTM90600 and EM3906 (corporation tax).

TMA70/S36 (3)

TMA70/S43A - S43C

FA98/SCH18/PARA61 - 65