Working the Enquiry: Claims and Elections - What are Claims and Elections?
Claims and elections are subject to TMA70/S42 unless the legislation says that S42 does not apply. Claims made outside a return are subject to the provisions of TMA70/SCH1A, whilst claims affecting more than one year are subject to specific provisions at TMA70/SCH1B.
Sometimes claims are made outside a return but later repeated in a return and it is necessary to establish whether an enquiry should be opened under TMA70/S9A, FA98/Sch18/Para24 or TMA70/SCH1A/Para5. It is important to open the enquiry under the correct provision to ensure that HMRC can give effect to any amendment of the claim at the conclusion of the enquiry and thereby recover any tax lost.
The detailed guidance on SA claims and elections can be found in the Self Assessment Claims Manual (SACM).
The detailed guidance on CTSA claims and elections can be found at CTM90602+.
Some sections of the Taxes Acts stipulate that taxpayers should make an “election” in relation to a particular aspect of their tax affairs and these are usually made in writing. TMA70/S42(10) says
“This section…………………….. shall apply in relation to any elections as it applies in relation to claims.” This means that you treat elections as you would claims.