DMBM668400 - CCP: SA determination superseded by a self assessment

Section 28C(4) Taxes Management Act 1970 (for ITSA) and Paragraph 40 of Schedule 18, to the Finance Act 1998 (for CTSA) provide that where an officer of the Board has commenced any proceedings for the recovery of tax charged by a determination and before thoseproceedings are concluded the determination is superseded by a self assessment, the proceedings may be continued as if they had been proceedings for the unpaid amounts due under the self assessment.

In the context of the county court the proceedings are concluded at the date of judgment.

Before judgment

Reduction to nil

If the self assessment reduces the determination to nil, and no other liability is included in the claim

• advise the court and the defendant that you are withdrawing from the action
• treat the costs as irrecoverable.

Amendment to debt

Where a self assessment either increases or decreases (the amount of) a determination you should

• substitute that amount in your proceedings
• recalculate the interest on the revised amount
• write to the defendant

• send a copy of the letter and the defendant’s reply to the court
• file amended particulars of claim
• continue the action.

Where the amended claim falls into a higher court fee band for starting an action, the court will not normally seek an additional fee for the difference.

Where it falls into a lower band, the court will not normally reimburse the difference, nor should you seek reimbursement. In all circumstances you should continue the action including the original fee paid.

Exceptionally if the court insists on payment of an additional court fee then you should arrange this and include the higher fee in the amended claim. Similarly if the court insists on a lesser court fee being included in the action then you should do so without question and write off the difference unless the court refund it to you of their own accord.

After judgment

Reduction to nil

If the self assessment reduces the determination to nil and no other liability is included in the claim

• advise the court and the judgment debtor that you are withdrawing from the action
• treat the costs as irrecoverable
• do not oppose any application to have judgment set aside ( DMBM666380).

Amendment to debt

If the self assessment reduces the amount of the determination

• recalculate the interest on the revised amount
• notify the judgment debtor
• B/F seven days before taking any enforcement action.

Where the amended claim falls into a lower court fee band for starting an action, the court will not normally reimburse the difference, nor should you seek reimbursement. You should continue the action including the original fee paid.

Exceptionally if the court insists on a lesser court fee being included in the action then you should do so without question and write off the difference unless the court refund it to you of their own accord.

If however the self assessment increases the amount due

• ask the judgment debtor for payment for both the judgment debt and the increase.

If it is not paid,

• take enforcement action for the judgment debt and
• take further proceedings for the difference.

If you are taking enforcement action, excluding execution warrants which are dealt with at DMBM668370, refer the matter to your line manager.