SACM8045 - Making Enquiries Into Claims: Claim Made on a Return for a Different Year
Throughout this manual legislative references are to the Taxes Management Act 1970 (TMA70), unless otherwise stated.
Occasionally claimants may make a claim for one year on the return for a different year.
For example
1. A trading loss arising in an accounting period ending in 2005-06 may be claimed in the additional information box of the 2004-05 return.
2. Alternatively, the return for 2005-06 could show a claim for a loss which arose in 2004-05.
So, before you can decide which right of enquiry is relevant (S9A or Sch1A Para 5) you have to determine whether the claim amends a return or whether it should be treated as a stand-alone claim.
Using example 2 above, let’s assume the following dates
| 2004-05 | 2005-06 |
|---|---|
| 06/04/2005 - Return issued | |
| 30/11/2005 - Return filed | |
| 31/01/2006 - Statutory filing date | |
| 06/04/2006 - Return issued | |
| 30/11/2006 - Return filed | |
| 31/01/2007 - S9ZA amendment deadline | 31/01/2007 - Statutory filing date |
| 31/01/2008 - S9ZA amendment deadline |
At 30 November 2006, when the 2005-06 return is filed, it is still possible for the taxpayer to amend his 2004-05 return under section 9ZA. As that is so, a claim included in the 2005-06 return for a loss arising in 2004-05 is treated as an amendment to the return for 2004-05 and an enquiry may be opened under section 9A into the 2004-05 return (amendment).
Had the 2005-06 return been filed at a time when the taxpayer could no longer amend his 2004-05 return under S9ZA, the claim on the later return would be treated as a stand-alone claim (claim not included in a return) and any enquiry would be opened under Sch1A Para 5.
For example
| 2004-05 | 2005-06 |
|---|---|
| 06/04/2005 - Return issued | |
| 30/11/2005 - Return filed | |
| 31/01/2006 - Statutory filing date | |
| 06/04/2006 - Return issued | |
| 31/01/2007 - S9ZA amendment deadline | 31/01/2007 - Statutory filing date |
| 05/02/2007 - Return filed | |
| 31/01/2008 - S9ZA amendment deadline |
Further, in this instance, the 2005-06 return may give cause for concern in other respects and if you wanted to make enquiries into the return, you would have two enquiries
- one into the 2005-06 return under S9A, and
- one under Sch1A Para 5 into the claim for the earlier year.
Care needs to be taken in these situations to ensure that the opening letters leave the taxpayer in no doubt as to what his rights and obligations are. Also, the correct procedures need to be followed when closing the enquiry, see .
Partnerships
When dealing with partnership returns, any enquiry would be under S12AC or Sch1A Para 5.