RDRM32035 - Remittance Basis: Accessing the remittance basis: Claiming the remittance basis: Consequential remittance basis claims

Where HMRC is making an assessment or amendment increasing the amount of tax due, in certain circumstances a claim that would otherwise be out of time can be made. This is dealt with in SACM9000 onwards.

Whether a consequential remittance basis claim is allowed will depend on the behaviour that has led to the loss of tax. Where the loss of tax has not been brought about by careless or deliberate behaviour a consequential remittance basis claim made outside the general claim time limit is allowed.

Where tax has been lost due to careless or deliberate behaviour a consequential remittance basis claim made outside the general time limit for claims is not allowed.

This is because a claim to the remittance basis is a claim to an alternative basis of assessment and not a claim to relief.

S43 TMA 1970 (via s43C TMA 1970 for amendments), deals with consequential claims made where an assessment or amendment is being made to recover tax that has not been lost due to careless or deliberate behaviour.

S36(3) TMA 1970 (via s43C TMA 1970 for amendments), deals with consequential claims where an assessment or amendment is being made to recover a loss of tax brought about by careless or deliberate behaviour.

S43A TMA 1970 allows for all claims, not only claims to relief, whereas, s36C restricts the consequential claims allowed to claims to relief.

Further guidance is available in SACM9000.