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HMRC internal manual

Self Assessment Claims Manual

Claims involving two or more years: background and legislation


Before the introduction of Self-Assessment and the Current Year basis of assessment, a claim to carry back losses to an earlier year meant that the assessment for that earlier year had to be re-opened. This is no longer the case.

Such claims are now dealt with in accordance with TMA70/S42 and SCH1B and there is no need to re-open the earlier year where the claim affects more than one year.

The claims involved include the

  • carry back of losses under ITA07/S64
  • carry back of losses in the early years of trade under ITA07/S72
  • carry back of pensions contributions
  • carry back of certain capital gains losses (for example, those claimed under ITA07/S131)
  • averaging of farming profits, and
  • averaging of literary and artistic profits.

Each type of claim may be governed by a specific time limit set out in the relevant legislation. If that is not the case, the general time limit at TMA70/S43 will apply.