CH50100 - Assessing Time limits: Overview

Prior to the creation of HMRC there were various time limits across the tax regimes for

• assessing taxes and
• making claims to relief and repayment.

Aligning these time limits where possible reduces compliance costs for customers and makes our compliance checks easier.

The new time limits come into effect on [1 April 2009] for VAT and on [1 April 2010] for direct taxes. There are transitional provisions for VAT purposes only, see CH280000+. The new time limits apply to assessments and claims for income tax, capital gains tax, corporation tax and VAT that are made after these dates regardless of the period the assessment or claim relates to.

This guidance provides details of the time limits that apply for making assessments and determinations. It does not cover the time limits for claims. You should refer to the specific guidance for each type of claim for details about the appropriate time limits.

The normal time limit for most assessments and determinations will be four years from the end of the relevant tax period. There are however many variations from this norm. The tables in the Appendices give a full summary.

We can make an assessment outside the normal time limit, see CH53100. We will do this, for example, where tax has been under-assessed or over-repaid because of the careless or deliberate behaviour of the person or another person acting on their behalf.

Where tax has been under-assessed or over-repaid because of careless behaviour we can make an assessment within 6 years of the end of the relevant tax period. This applies to income tax, capital gains tax and corporation tax only.

Where tax has been under-assessed or over-repaid because of deliberate behaviour we can make an assessment within 20 years of the end of the relevant tax period. This applies to income tax, capital gains tax, corporation tax and VAT.

Where we

• make a discovery assessment for income tax, capital gains tax or corporation tax, or
• amend a return in an SA enquiry closure notice, or
• amend a return for another accounting period as a consequence of a CTSA enquiry closure notice,

the person may be able to make various consequential claims and elections that otherwise would have been out of time. More detail is at CH55100. There are no consequential claims for VAT.