EM3215 - Discovery: legislation and time limits: time limits - Corporation Tax - Paragraph 46, Schedule 18 FA 1998

Time Limits

Para 46(1) Sch 18 FA 1998 - Subject to any provision of the Taxes Acts allowing a longer period in any particular class of case no assessment may be made more than 4 years after the end of the accounting period to which it relates.

Para 46(2) Sch 18 FA 1998 - An assessment in a case involving a loss of tax brought about carelessly by the company (or a related person) may be made at any time not more than 6 years after the end of the accounting period to which it relates (subject to sub-paragraph (2A) and to any other provision of the Taxes Acts allowing a longer period).

Para 46(2A) Sch 18 FA 1998 - An assessment in a case involving a loss of tax–

  • (a) brought about deliberately by the company (or a related person),
  • (b) attributable to a failure by the company to comply with an obligation under paragraph 2,
  • (c) attributable to arrangements in respect of which the company has failed to comply with an obligation under section 309, 310 or 313 of the Finance Act 2004 (obligation of parties to tax avoidance schemes to provide information to Her Majesty’s Revenue and Customs), or
  • (d) attributable to arrangements which were expected to give rise to a tax advantage in respect of which the company was under an obligation to notify the Commissioners for Her Majesty’s Revenue and Customs under section 253 of the Finance Act 2014 (duty to notify Commissioners of promoter reference number) but failed to do so

may be made at any time not more than 20 years after the end of the accounting period to which it relates (subject to any provision of the Taxes Acts allowing a longer period).

Para 46(2B) Sch 18 FA 1998 - In this paragraph, “related person”, in relation to a company, means–

  • (a) a person acting on behalf of the company, or
  • (b) a person who was a partner of the company at the relevant time.

Para 46(3) Sch 18 FA 1998 - Any objection to the making of an assessment on the ground that the time limit for making it has expired can only be made on an appeal against the assessment.