Enquiries into Tax Returns: time limits for discovery assessments
In any case of incomplete disclosure without careless or deliberate conduct the time limit for a discovery assessment is not later than 4 years after the end of the tax year to which it relates.
Section 36(1) and (1A)
In any case involving a loss of tax brought about carelessly, the time limit for making a discovery assessment is not later than 6 years after the end of tax year to which the assessment relates.
The time limit for making a discovery assessment is not later than 20 years after the end of the tax year to which it relates where the loss of tax is:
- brought about deliberately by the person
- attributable to a failure to notify liability under Section 7, or
- attributable to a tax avoidance scheme which is a notifiable arrangement or a listed or hallmarked scheme and the user of the scheme failed to disclose details to HMRC at the proper time.
Payment of tax
The due date for tax charged by a discovery assessment is 30 days after the notice of the assessment is given (delivered).