OT61010 - Transferable tax history - Administration and enquiries - Election - enquiries

A joint election to transfer TTH is an election or claim outside of a tax return. The provisions in TMA70\Sch1A therefore apply, with the exception of paragraph 3 (amendment of claims), which does not apply as a result of FA19\Sch15\Para58(2).

Consequently, the time limits for HMRC to open an enquiry into an election are the same as for other claims or elections outside a return: the quarter day next following the first anniversary of the day on which the election was made.

Following an enquiry, HMRC may amend an election as necessary in accordance with TMA70\Sch1A\Para7. The parties may appeal that decision to the Tribunal if they disagree with it.

There is no option to amend the election, so the parties to the election should take care to ensure that the election submitted is correct.

There is no provision in the Schedule for making a late election (see OT60055 for details of time limits). FA19\Sch15\Para58(1) makes clear that an election cannot be made outside of those time limits. Therefore, anything received by HMRC after that time limit cannot be an election and so will be rejected by HMRC.

Similarly, in accordance with Para 57, if a seller company is party, directly or indirectly as an associated company, to a DRD, it must also be party to an alternative schedule with HMT in order to make a valid election. If the seller company is indirectly party to a DRD through an associated company, then the associated company must be party to the alternative schedule in order for the seller company to make a valid election.