SE42440 - Emoluments from offices and employments: basis of assessment - assessments made after a change of practice

Section 206 ICTA 1988

There is a special rule relating to Schedule E assessments, or self-assessments, which are made following a change of practice.

You only need to consider this rule if

• there has been a change of practice in relation to an item of Schedule E income and
• the assessment or self-assessment is being made more than twelve months after the end of the year of assessment to which it relates.

The purpose of the rule is to prevent certain liabilities regarded as settled under the non- assessment procedure at EP3560 onwards being reopened. Details of Schedule E income to which the rule applies are at SE42450.

How the rule operates is at SE42470.

See also SE42460 regarding the decision in Walters v Tickner (66TC174), and the application of Section 206 ICTA 1988 to income which is exempt from tax.

The application of Section 206 is a comparatively rare event. You should submit any case where you believe Section 206 may affect an assessment, or self-assessment, to Employment Income Technical, before raising any enquiries.