BIM73155 - Farmers’ averaging: claims: time limit

An averaging claim should be made not later than:

• two years after the end of the second year of assessment to which it relates, for pairs of years up to 1995-96 and 1996-97,
• 22 months after the end of the second year of assessment, for pairs of years 1996-97 and 1997-98 onwards.

See, however, the second paragraph of BIM73150 regarding certain adjustments to assessments for earlier years, BIM61551 for Lloyds under-writers and BIM73151 where a late claim is made in an investigation case.

Notice of claim

The claim should be made by notice given to the inspector, and a claim to average partnership profits under the pre-SA rules should be made jointly by all the affected partners. Under SA each partner must claim in respect of his or her own share of the profits. Not all partners need to elect. If there is a clear indication in the computations or correspondence that an averaging claim is intended, you may accept that as sufficient notice unless there are exceptional circumstances which make it prudent to require a claim signed by the claimant(s).

Withdrawal of claims

Withdrawal of claims under ICTA88/S96 may in practice be allowed within the normal time limit only if the claim has not been determined by the Inspector as shown below or by the Commissioners before the request for withdrawal is made.