CG13730 - Claims and elections: Procedures for making a claim or election
How should a claim be made?
Most claims and elections that can be made in a return, or by amending a return, have to be so made when a notice calling for the return has been given. If a claim or election is made other than in a return (e.g. if one is made before notice calling for a return was given, or after the time allowed to amend the return has passed), the rules in Sch.1A TMA70 and Sch.1B TMA70will apply.
When is a claim/ election be made?
A claim or election is made when it is received by HMRC – not when it is signed, or dated, or posted.
What information does a claim/ election need to include?
Some claims and elections have a specified form or format which must be used. Others don’t have a specified form or format and can be made in any form the customer chooses.
The relevant capital gainsmanual pages relating to a specific claim or election will provide further detail about the information that needs to be provided, but as a general rule a claim or election must state the following:
The customer’s name and their Unique Customer Reference (“UTR”)
What claim or election is being made
Sufficient information so as to give effect to the claim or election e.g.
What tax year(s) the claim or election relates to
The asset(s) subject of the claim or election
Quantification of the claim or election
Any values to be used
If the claim is made as part of the return, the white space notes should be used to provide details of the claim.
If the claim is sent outside of a tax return, it must alsoinclude a declaration to be signed by the claimant or the person claiming on theirbehalf, which states that the particulars given in the claim are correct and complete to the best of their knowledge and belief. Where relevant, we would also expect the claim to be supported by a document which evidences that the tax charge to which the claim relates has been paid.
If you receive an indication that a claim or election is intended but the claim is not in the proper form, you should contact the customer and set out the information which is needed to put the claim or election in the proper form.
See SACM4000+ for information about what records and information must be kept when making a claim.
SACM5000+ provides details about whether provisional claims or elections can be made. The relevant section of the CG manual will also state if it is possible for a provisional claim,electionor declaration to be made.
See Sch.1B TMA70 andSACM11000 (or CTM90630 for companies) for information about claims involving two or more years.
Consequential Claims after Assessment and Amendment
The legislation does allow a customer to make various out-of-time actions where we make a discovery assessment or amend a return in an enquiry closure notice, see SACM9000+ or CTM90650 for companies.
Amending or correcting claims
Claims may be amended or ‘corrected’ by the person making the claim or by HMRC,see SACM3040.
Making enquiries into claims or elections
See SACM8000.
Withdrawing an irrevocable election
Some elections are irrevocable. Withdrawal of such elections can only be allowed by the Board under its collection and management function at s1 TMA70. If you receive a request for a withdrawal of an irrevocable election you shouldfind out why the customer wishes to withdraw the election(This content has been withheld because of exemptions in the Freedom of Information Act 2000).