SE03105 - Removal or transfer costs: qualifying expenses & benefits: main conditions: extension of time limit

Part II Schedule 11A ICTA 1988

The Board have the power to extend the time limit by one or more complete tax years if it seems reasonable to do so. That power is delegated to Band B Team Leaders in the following circumstances.

1) Children on examination courses

Where the employee's relocation is delayed to allow a child or children to complete public examination courses (typically GCSE's, A Levels, or in Scotland SCE O Levels and Highers). Courses usually last two years, and you should extend the time limit to 5 April following the completion of the examinations.

2) Difficulty in selling the old residence

Where the relocation has been delayed because of difficulty in selling the old residence. You should satisfy yourself that reasonable efforts have been made to sell the old residence. Extend the time limit by one year at a time, and review all the circumstances if a further application is made.

Note that there is no point in extending the time limit if the employee will have received £8,000 of qualifying expenses and benefits by the end of the normal time limit. Send a full report to Personal Tax (Technical), Solihull in cases falling within 1 or 2 above where you consider that the time limit should not be extended.

Where the Band B Team Leader decides to extend the time limit, he/she should write to the employee using the draft letter at example SE03107. (If the application for an extension came from the employer or an accountant, adapt the first paragraph of the reply as necessary.)

Where it is claimed that the time limit should be extended in circumstances other than those falling within 1 and 2 above a report should be sent to Employment Income Technical in every case. You should establish the full facts as to why the normal time limit could not be met before making this report.