COM71140 - Enquiries: CTSA enquiries: closing an enquiry: enquiries under Schedule 1A TMA 1970

This subject is presented as follows

COTAX

COTAX does not provide support for Schedule 1A enquiries into claims and elections not made in a return. You must open, conduct and close those enquiries outside of COTAX.

The conclusions of a Schedule 1A enquiry will normally affect the company's liabilities, so you will need to update COTAX with the result. When you are ready to do so

• Use Function RAMA (Record/Amend Assessment), ‘Process a Claim’ option, to amend the recorded claim (or record the amended claim) on COTAX and ensure that you suppress the assessing output. (You must do that because the wording of the computer-issued claims output is not appropriate to settling a Sch 1A enquiry)

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Enquiry Completion Procedures under Sch 1A TMA 1970 - post FA 2001

Schedule 29 Part 4 Paragraph 10 FA 2001 amended Paragraph 7 Schedule 1A TMA 1970 to simplify the procedure on completion of an enquiry into claims etc not included in returns. (See the Enquiry Manual for details of the approach before FA 2001.)

Your Closure Notice and any necessary amendment to the claim are now combined into one letter, the ‘Closure Notice’. It dispenses with the 60-day process for amendments on the completion of a Schedule 1A enquiry. The taxpayer right to amend on closure does not apply to enquiries into such claims.

If you complete an enquiry under Schedule 1A TMA into a company claim on or after 11 May 2001, the new completion procedures apply to it.

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Schedule 1A and Para 24 Schedule 18 FA 1998

There are important distinctions between the Schedule 1A TMA 1970 and Schedule 18 FA 1998 enquiry regimes and different closure procedures apply to each. See the Enquiry Manual for further information on both regimes.

Note: FA 2001 does not affect the closure procedures for enquiries into Company Tax Returns under Paragraph 24 Schedule 18 FA 98.

If the company has delivered a return for the AP affected by the Sch 1A claim and you are already conducting a Para 24 Sch 18 enquiry into that return, you must handle the Sch 1A enquiry separately from the Para 24 Sch 18 enquiry.

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Further Information

For more information about enquiries into claims and elections under Schedule 1A, see

• Enquiry Manual (at EM8030, EM8560,EM6700 , and EM3830 onwards)
• Company Taxation Manual (at CT10635)
• COM, subject ‘Claims And Elections Not Made In A Return’ (COM52030) in the ‘Claims / Reliefs’ business area

For a list of forms relevant to this subject, see COM71021.

For a list of functions to use in particular situations, see COM71011.

For legislation applying to this subject, see COM71012.