SVM24010 - Share Valuation Manual: Self Assessment
What is Self Assessment?
Self Assessment (SA) is the system for assessing and collecting income tax and capital gains tax. It was introduced by the Finance Act 1994 with effect from the tax year commencing 6 April 1996.
Initially, SA only applied to taxpayers who were individuals, trusts or partnerships. However, SA was extended to taxpayer companies for accounting periods ending on or after 1 July 1999.
Prior to the introduction of SA, taxpayers were required to supply information to the Revenue in order that the Revenue could issue an assessment - the legal charge to tax. Under SA it is the taxpayer who creates the legal charge to tax by making a self-assessment of their liability for any year.
What follows is a brief guide for the assistance of valuers. Detailed instructions for the conduct of enquiries under the Self Assessment regime are given in the Revenue's Enquiry Handbook. Paragraphs 1.1 to 1.5 below describe the SA regime for taxpayers other than companies and its effect on SV work. SVM24060 deals with SA for companies.
1. Making a Self Assessment
Taxpayers can make a self-assessment by either:
- Including a calculation of tax liability
with their tax return; or
- Filing the tax return only, leaving the Revenue to do the tax calculation and advise the taxpayer of the amount to pay.
2. Self Assessment Returns
The first SA tax returns were not issued until April 1997, i.e. for the tax year 1996/97. They had to be completed and filed with the Revenue before either:
-
30 September 1997 - if the taxpayer required
Revenue assistance in calculating the tax due; or
- 31 January 1998 - if the taxpayer chose to calculate the tax due.
These deadlines of the 30th September and 31st January following the end of the tax year also apply to all succeeding years.
SA tax returns require taxpayers to provide the information needed to calculate their taxable income (from all sources) and any chargeable gains. The legal charge to tax is created by the submission of a completed self assessment or, in Revenue calculation cases, by the issue of the notice of the tax payable.
Duties of the Taxpayer
There are automatic penalties if a taxpayer fails to submit a return on time. In substantial cases, daily penalties may be sought and in cases of serious delay tax geared penalties may become due.
Taxpayers who do not receive a tax return but who have income or chargeable gains on which tax is due are required to notify the Revenue so that a return may then be issued.
Taxpayers are required to keep and preserve the records needed to make a complete and correct return for any period.
