EM3201 - Discovery: introduction

Enquiries into tax returns under Self Assessment (SA) are opened under the formal enquiry powers in Section 9A (individuals), Section 12AC (partnerships) and Schedule 1A (claims) of TMA 1970. Schedule 18 Finance Act 1998 for companies.

These enquiries will be closed under the provisions of Section 28A and 28B, TMA 1970, paras 7 and 8 of Schedule 1A TMA 1970, or Para 32 and 34 Schedule 18 FA 1998.

Wherever possible HMRC should open an enquiry under the SA provisions.

However, HMRC may need to extend an open enquiry to cover earlier years when there is evidence that there are insufficiencies in these years, or when a new compliance check is begun into a year where the time limit to open SA enquiries has passed. In either case HMRC will need to use its legal power to make discovery assessments.

Legislation
TMA1970/S29
FA 1998/Sch18/Para 41