CH56100 - Assessing Time Limits: Tables of time limits for relevant taxes: Income Tax & Capital Gains Tax

You should note that there are separate time limits for failure to correct penalties under the Requirement to Correct legislation. For detailed guidance see CH123200.

1a. Assessment

HMRC determination of tax where notice to make a return issued but no return delivered

Time Limit

3 years from the filing date. Subject to transitional provisions before 1 April 2012 - see CH51550

Legislation

TMA70/S28C(5) as amended by FA08/SCH39/PARA2

1b. Assessment

Person’s self-assessment to displace an HMRC determination by filing return

Time Limit

The later of

  • 3 years from the filing date, and
  • 12 months from the date of the determination. Subject to transitional provisions before 1 April 2012 - see CH51550

Legislation

TMA70/S28C(5) as amended by FA08/SCH39/PARA2

2. Assessment

Person’s routine self-assessment where no HMRC determination has been made (see 1b where there is a determination)

Time Limit

4 years from the end of the year of assessment. Subject to transitional provisions before 1 April 2012 - see CH51550

Legislation

TMA70/S34A as amended by FA08/SCH39/PARA7

3a. Assessment

“Discovery” assessment (or amendment of partnership statement) where loss of tax not due to careless or deliberate behaviour

Time Limit

4 years from the end of the year of assessment

Legislation

TMA70/S34 as amended by FA08/SCH39/PARA7

3b. Assessment

“Discovery” assessment (or amendment of partnership statement) where loss of tax due to careless behaviour of person or agent

Time Limit

6 years from the end of the year of assessment

Legislation

TMA70/S36(1) as substituted by and TMA70/S36(1B) as inserted by FA08/SCH39/PARA9

3c. Assessment

“Discovery” assessment (or amendment of partnership statement) where loss of tax involves an offshore matter or offshore transfer

Time Limit

12 years from the end of the year of assessment except where a longer time limit applies

Legislation

TMA70/S36A(2) as inserted by FA18/Section 80

For 2013-14 and 2014-15 there must be careless behaviour by the person or anyone acting on their behalf for the 12-year offshore time limit to apply.

For 2015-16 onwards the 12-year offshore time limit will apply where there has been no careless or deliberate behaviour.

In every case consider whether relevant overseas information has been provided which means that the lost tax could reasonably have been assessed within “normal” time limits.

Where the behaviour is deliberate the 20 year time limit will apply.

For full detailed guidance on the offshore extended time limit see CH53505.

3d. Assessment

“Discovery” assessment (or amendment of partnership statement) where loss of tax due to deliberate behaviour of person or agent

Time Limit

20 years from the end of the year of assessment

Legislation

TMA70/S36(1A) and (1B) as inserted by FA08/SCH39/PARA9

3e. Assessment

“Discovery” assessment (or amendment of partnership statement) where loss of tax due to person’s failure to provide information about an avoidance scheme

Where the person has a reasonable excuse for the failure with no unreasonable delay they are deemed not to have failed

Time Limit

20 years from the end of the year of assessment or 4 years from the end of the year asssessment where the person has a qualifying reasonable excuse.

Legislation

TMA70/S118 (2) and TMA70/S36(1A)(c) as amended by FA08/SCH39/PARA7

3f. Assessment

“Discovery” assessment where loss of tax due to failure to notify liability to tax.

Where the person has a reasonable excuse for the FTN with no unreasonable delay they are deemed not to have failed

Time Limit

20 years from the end of the year of assessment or 4 years from the end of the year of assessment where the person has a qualifying reasonable excuse.

Legislation

TMA70/S118 (2), TMA70/S34 as amended by FA08/SCH39/PARA7, TMA70/S36 (1A)(b)

If the person has no reasonable excuse and/or did delay unreasonably thereafter he will have failed. For 2008-09 and earlier years the tax loss must also be attributable to the negligent conduct of the person or someone acting on his behalf the time limit will be 20 years from the end of the year of assessment.

3g. Assessment

“Discovery” assessment on personal representatives of a deceased person in respect of years/periods up to date of death

Time Limit

Any assessment has to be made within 4 years of the end of the year of assessment in which the taxpayer died

Legislation

TMA70/S40(1) as amended by FA08/SCH39/PARA11

But no assessment can be made for a year of assessment ending more than 6 years before the date of death, even where the assessment involves a loss of tax due to

  • an offshore matter or offshore transfer, or
  • the careless or deliberate behaviour of the person (or of the person’s agent while the person was still alive), or the failure of the deceased to notify chargeability to income tax or capital gains tax.

TMA70/S40(2) as amended by FA08/SCH39/PARA11

4a. Assessment

Assessment to recover an over-repayment of tax - no careless or deliberate behaviour

Time Limit

The latest of

  • 4 years from the end of the year of assessment concerned,
  • the end of the year of assessment next following that in which the excessive repayment was made, and
  • the closure of the enquiry into the relevant return by way of final closure notice

Legislation

MA70/S30(5) and TMA70/S34 as amended by FA08/SCH39/PARA7

4b. Assessment

Assessment to recover an overpayment of tax - careless behaviour

Time Limit

The latest of

  • 6 years from the end of the year of assessment concerned,
  • the end of the year of assessment next following that in which the excessive repayment was made, and
  • the closure of the enquiry into the relevant return by way of final closure notice

Legislation

TMA70/S30(5) and TMA70/S36 as amended by FA08/SCH39/PARA9

4c. Assessment

Assessment to recover an overpayment of tax - deliberate behaviour

Time Limit

The latest of

  • 20 years from the end of the year of assessment concerned,
  • the end of the year of assessment next following that in which the excessive repayment was made, and
  • the closure of the enquiry into the relevant return by way of final closure notice

Legislation

TMA70/S30(5) and TMA70/S36 as amended by FA08/SCH39/PARA9

5a. Assessment

Assessment on employment, pension or social security income received after the year of assessment for which it is assessable - no careless or deliberate behaviour

Time Limit

The later of

  • 4 years from the end of the year of assessment for which it is assessable, and
  • 4 years from the end of the year of assessment in which the income is received

Legislation

TMA70/S35, as amended by FA08/SCH39/PARA8

5b. Assessment

Assessment on employment, pension or social security income received after the year of assessment for which it is assessable - careless behaviour

Time Limit

The later of

  • 6 years from the end of the year of assessment for which it is assessable, and
  • 6 years from the end of the year of assessment in which the income is received

Legislation

TMA70/S35 and TMA70/S36 as amended by FA08/SCH39/PARA8 and 9

5c. Assessment

Assessment on employment, pension or social security income received after the year of assessment for which it is assessable - deliberate behaviour

Time Limit

The later of

  • 20 years from the end of the year of assessment for which it is assessable, and
  • 20 years from the end of the year of assessment in which the income is received

Legislation

TMA70/S35 and TMA70/S36 as amended by FA08/SCH39/PARA8 and 9

6a. Assessment

To withdraw or reduce EIS (Enterprise Investment Scheme) relief - no careless or deliberate behaviour

Time Limit

The later of 6 years from the end of the year of assessment in which

  • the use of money requirement falls, or
  • the event which causes the withdrawal or reduction of relief occurs

Legislation

ITA07/S237 as amended by FA08/SCH39/PARA59

6b. Assessment

To withdraw or reduce EIS (Enterprise Investment Scheme) relief - careless behaviour

Time Limit

The later of 6 years from the end of the year of assessment in which

  • the use of money requirement falls, or
  • the event which causes the withdrawal or reduction of relief occurs

Legislation

ITA07/S237 as amended by FA08/SCH39/PARA5

6c. Assessment

To withdraw or reduce EIS (Enterprise Investment Scheme) relief - deliberate behaviour

Time Limit

The later of 20 years from the end of the year of assessment in which

  • the use of money requirement falls, or
  • the event which causes the withdrawal or reduction of relief occurs

Legislation

ITA07/S237 as amended by FA08/SCH39/PARA59

7a. Assessment

To withdraw or reduce CITR (Community Investment Tax Relief) relief - no careless or deliberate behaviour

Time Limit

6 years from the end of the year of assessment for which the relief was obtained

Legislation

ITA07/S372 as amended by FA08/SCH39/PARA60

7b. Assessment

To withdraw or reduce CITR (Community Investment Tax Relief) relief - careless behaviour

Time Limit

6 years from the end of the year of assessment for which the relief was obtained

Legislation

ITA07/S372 as amended by FA08/SCH39/PARA60

7c. Assessment

To withdraw or reduce CITR (Community Investment Tax Relief) relief -deliberate behaviour

Time Limit

20 years from the end of the year of assessment for which the relief was obtained

Legislation

ITA07/S372 as amended by FA08/SCH39/PARA60

8. Assessment

Determinations of income tax due under the PAYE Regulations

Time Limit

As for “discovery” assessments

Legislation

As for “discovery” assessments

9. Assessment

Determinations of CIS deductions due under the CIS Regulations

Time Limit

As for “discovery” assessments

Legislation

As for “discovery” assessments

10. Assessment

Assessments of income tax deductible from company payments

Time Limit

With modifications required by ITA07/S959 (previously ICTA88/ SCH16) as for “discovery assessments”

Legislation

As for “discovery assessments”

11. Assessment

Simple assessments

Time Limit

4 years from the end of the year of assessment

Legislation

TMA70/S28