AH2105 - Appeals Handbook - SA Appeals: Assessments, Amendments and Enquiries: Appeal against HMRC assessment

TMA70/S31(1)(d) grants the right of appeal against any assessment to tax which is not a self assessment. The only assessments that can be made under ITSA are discovery assessments.

If an appeal is made against a HMRC assessment the appellant may apply under TMA70/S55(1)(b) to postpone payment of all or part of the tax etc charged.

The normal procedures for dealing with appeals and postponement applications apply (see AH0100 and subsequent paragraphs).

A taxpayer can object to the discovery assessment on the grounds that no assessment should have been made because neither of the two necessary conditions, set out in the discovery legislation, were satisfied. These are

• the further tax that is due arises from the fraudulent or negligent conduct of the taxpayer, or of a person acting on his or her behalf
• the officer who made the assessment could not have been reasonably expected, on the basis of the information made available to him or her, to be aware of the underassessment when the enquiry window closed or a completion notice was issued.

An objection to a discovery assessment on the grounds that one of the two conditions is not satisfied can only be by way of an appeal.

An appeal can also be made against the quantum etc of a discovery assessment.

If the discovery assessment is a further assessment the same rights of appeal apply as with main assessments, but the making of the further assessment does not give any further right of appeal against the associated main assessment which has become final and conclusive (see Ingle v Farrand, 11TC446).

See AH0140 regarding SA payments on account for the following year.