EM3270 - Reopening Earlier Years: Discovery in SA Years: SA Time Limits

TMA70/S34(1)

TMA70/S36(1)

Normal Time Limits

Where there has been incomplete disclosure without fraudulent or negligent conduct, the time limit for making a discovery assessment on an individual is five years from 31 January next following the tax year to which it relates.

Thus the time limit for an individual for 1996/97 is 31 January 2003.

The time limit for recovery of an overpayment is the later of

• the year of assessment following that in which the amount assessed was repaid or paid as the case may be, and
• where a return is enquired into by HMRC, the period ending with the day on which, but virtue of Section 28A(1), the officer’s enquiries are treated as completed.

Extended Time Limits

Where there has been fraudulent or negligent conduct the time limit for making a discovery assessment is extended for an individual to 20 years from 31 January next following the tax year to which it relates. See EM3340+ for operational procedures.

Thus the Section 36(1) time limit for an individual for 1996/97 is 31 January 2018.

Out of Time Returns

Where a taxpayer submits a return that is out of time for a self assessment, you can normally make a discovery assessment based on negligent conduct to recover the tax shown on the return EM3265.