Taxes Management Act 1970

Time limits U.K.

34 Ordinary time limit of [F1 4 years] . U.K.

(1) Subject to the following provisions of this Act, and to any other provisions of the Taxes Acts allowing a longer period in any particular class of case, [F2 an assessment to income tax or capital gains tax may be made at any time [F3 not more than 4 years after the end of] the year of assessment to which it relates].

(2) An objection to the making of any assessment on the ground that the time limit for making it has expired shall only be made on an appeal against the assessment.

Textual Amendments

F1 Words in s. 34 heading substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 7(3) (with Sch. 39 para. 66); S.I. 2009/403, art. 2(2) (with art. 10)

F2 Words in s. 34(1) substituted (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 19 para. 17; S.I. 1998/3173, art. 2

F3 Words in s. 34(1) substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 7(2) (with Sch. 39 para. 66); S.I. 2009/403, art. 2(2) (with art. 10)

Modifications etc. (not altering text)

C1 S. 34 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

C2 S. 34 applied (with modifications) by The Lloyd’s Underwriters (Tax) Regulations 1989 (S.I. 1989/421), Sch

S. 34 applied (with modifications) by The Lloyd’s Underwriters (Tax) (1987—88) Regulations 1990 (S.I. 1990/627), reg. 3(2), Sch

C3 S. 34 excluded (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 248(2), 289 (with ss. 60, 101(1), 171, 201(3))

C4 S. 34 applied (6.4.2006) by The Registered Pension Schemes (Accounting and Assessment) Regulations 2005 (S.I. 2005/3454), regs. 1, 12(a)

C5 S. 34 excluded by Taxation of Chargeable Gains Act 1992 (c. 12), s. 248C(4) (as inserted (with effect in accordance with art. 8(2) of the amending S.I.) by S.I. 2010/157, arts. 1, 8(1))

C6 S. 34(1) applied (with modification) (19.4.1991) by The Lloyd’s Underwriters (Tax) (1988–89) Regulations 1991 (S.I. 1991/851), regs. 1, 3(2), Sch. 1

S. 34(1) extended (with modifications) (28.3.1992) by The Lloyd’s Underwriters (Tax) (1989—90) Regulations 1992 (S.I. 1992/511), regs. 1, 3, Sch. 1

C7 S. 34(1) applied (with modifications) (23.3.1993) by The Lloyd’s Underwriters (Tax) (1990–91) Regulations 1993 (S.I. 1993/415), regs. 1(1), 3(2), Sch.1

C8 S. 34(1) applied (with modifications) (with effect in accordance with reg. 1(1) of the amending S.I.) by The Lloyds Underwriters (Tax) (1991-92) Regulations 1994 (S.I. 1994/728), reg. 3(2), Sch.

C9 S. 34(1) modified (with effect in accordance with reg. 6(3) of the amending S.I.) by The Lloyds Underwriters (Tax) (1992-93 to 1996-97) Regulations 1995 (S.I. 1995/352), regs. 1(1), 6(1)(2)

C10 S. 34(1) modified (with effect in accordance with reg. 7(3) of the amending S.I.) by The Lloyds Underwriters (Tax) (1992-93 to 1996-97) Regulations 1995 (S.I. 1995/352), regs. 1(1), 7(1)(2)

C11 S. 34(1) applied (with modifications) (6.4.2006) by The Registered Pension Schemes (Accounting and Assessment) Regulations 2005 (S.I. 2005/3454), regs. 1, 10

[F4 35 Time limit: income received after year for which it is assessable U.K.

(1) Where income to which this section applies is received in a year of assessment subsequent to that for which it is assessable, an assessment to income tax as respects that income may be made at any time [F5 not more than 4 years after the end of] the year of assessment in which it was received.

(2) This section applies to—

(a) employment income,

(b) pension income, and

(c) social security income.]

Textual Amendments

F4 S. 35 substituted (with effect in accordance with Sch. 17 para. 3(2) of the amending Act) by Finance Act 2004 (c. 12), Sch. 17 para. 3(1) (note that s. 35 was previously repealed (with application in accordance with s. 58(4) of the amending Act) by Finance Act 1998 (c. 36), Sch. 27 Pt. III(9))

F5 Words in s. 35 substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 8; S.I. 2009/403, art. 2(2) (with art. 10)

[F6 36 [F7 Loss of tax brought about carelessly or deliberately etc] U.K.

[F8 (1) An assessment on a person in a case involving a loss of income tax or capital gains tax brought about carelessly by the person may be made at any time not more than 6 years after the end of the year of assessment to which it relates (subject to subsection (1A) and any other provision of the Taxes Acts allowing a longer period).

(1A) An assessment on a person in a case involving a loss of income tax or capital gains tax —

(a) brought about deliberately by the person,

(b) attributable to a failure by the person to comply with an obligation under section 7, F9 ...

(c) attributable to arrangements in respect of which the person has failed to comply with an obligation under section 309, 310 or 313 of the Finance Act 2004 (obligation of parties to tax avoidance schemes to provide information to Her Majesty's Revenue and Customs), [F10 or

(d) attributable to arrangements which were expected to give rise to a tax advantage in respect of which the person was under an obligation to notify the Commissioners for Her Majesty's Revenue and Customs under section 253 of the Finance Act 2014 (duty to notify Commissioners of promoter reference number) but failed to do so,]

may be made at any time not more than 20 years after the end of the year of assessment to which it relates (subject to any provision of the Taxes Acts allowing a longer period).

(1B) In subsections (1) and (1A) references to a loss brought about by the person who is the subject of the assessment include a loss brought about by another person acting on behalf of that person.]

[F11 (2) [F12 Where the person mentioned in subsection (1) or (1A) (“the person in default”)] carried on a trade, profession or business with one or more other persons at any time in the period for which the assessment is made, an assessment in respect of the profits or gains of the trade, profession or business [F13 in a case] mentioned in [F14 subsection (1A) or (1B)] may be made not only on the person in default but also on his partner or any of his partners.]

(3) If the person on whom the assessment is made so requires, in determining the amount of the tax to be charged for any chargeable period in any assessment made [F15 in a case] mentioned in subsection (1) [F16 or (1A)] above, effect shall be given to any relief or allowance to which he would have been entitled for that chargeable period on a claim or application made within the time allowed by the Taxes Acts.

[F17 (3A) In subsection (3) above, “claim or application” does not include an election under F18 ... [F19 any of sections 47 to 49 of ITA 2007] [F20 (tax reductions for married couples and civil partners: elections to transfer relief)] F21 ... .]

[F22 (4) Any act or omission such as is mentioned in section 98B below on the part of a grouping (as defined in that section) or member of a grouping shall be deemed for the purposes of [F23 subsections (1) and (1A)] above to be the act or omission of each member of the grouping.]]

Textual Amendments

F6 S. 36 substituted by Finance Act 1989 (c. 26), s. 149(1) but shall not affect making of assessments before 1983-84 or for accounting periods ending before 1 April 1983

F7 S. 36 heading substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 9(6) (with Sch. 39 para. 66); S.I. 2009/403, art. 2(2) (with art. 10)

F8 S. 36(1)-(1B) substituted for s. 36(1) (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 9(2) (with Sch. 39 para. 66); S.I. 2009/403, art. 2(2) (with arts. 7, 10)

F9 Word in s. 36(1A) omitted (17.7.2014) by virtue of Finance Act 2014 (c. 26), s. 277(1)(a) (with ss. 269-271)

F10 S. 36(1A)(d) and preceding word inserted (17.7.2014) by Finance Act 2014 (c. 26), s. 277(1)(b) (with ss. 269-271)

F11 S. 36(2) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 11(2); S.I. 1998/3173, art. 2

F12 Words in s. 36(2) substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 9(3)(a) (with Sch. 39 para. 66); S.I. 2009/403, art. 2(2) (with art. 10)

F13 Words in s. 36(2) substituted (1.4.2010) by Finance Act 2009 (c. 10), s. 99(2), Sch. 51 para. 41; S.I. 2010/867, art. 2(1)

F14 Words in s. 36(2) substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 9(3)(b) (with Sch. 39 para. 66); S.I. 2009/403, art. 2(2) (with art. 10)

F15 Words in s. 36(3) substituted (1.4.2010) by Finance Act 2009 (c. 10), s. 99(2), Sch. 51 para. 41; S.I. 2010/867, art. 2(1)

F16 Words in s. 36(3) inserted (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 9(4) (with Sch. 39 para. 66); S.I. 2009/403, art. 2(2) (with art. 10)

F17 S. 36(3A) inserted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 20, Sch. 5 paras. 9(2), 10

F18 Words in s. 36(3A) omitted (with effect in accordance with Sch. 1 para. 7 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 1 para. 6(a)(i)

F19 Words in s. 36(3A) inserted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 251(a) (with Sch. 2)

F20 Words in s. 36(3A) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 251(b) (with Sch. 2)

F21 Words in s. 36(3A) repealed (27.8.2002 for specified purposes, 6.4.2003 in so far as not already in force) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2002/1727, art. 2; S.I. 2003/962, art. 2(3)(e), Sch. 1

F22 S. 36(4) added by Finance Act 1990 s. 69, Sch. 11 para. 4(1) on and after 1July 1989.

F23 Words in s. 36(4) substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 9(5) (with Sch. 39 para. 66); S.I. 2009/403, art. 2(2) (with art. 10)

Modifications etc. (not altering text)

C12 S. 36 applied by The Income Tax (Entertainers and Sportsmen) Regulations 1987 (S.I. 1987/530), reg. 11(2)

C13 S. 36 applied (1.10.1993) by The Income Tax (Manufactured Overseas Dividends) Regulations 1993 (S.I. 1993/2004), reg.11(7)

C14 S. 36 applied (2.1.1996) by The Gilt-edged Securities (Periodic Accounting for Tax on Interest) Regulations 1995 (S.I. 1995/3224), regs. 1, 18(1) (with reg. 21)

C15 S. 36 applied (2.1.1996) by The Lloyds Underwriters (Gilt-edged Securities) (Periodic Accounting for Tax on Interest) Regulations 1995 (S.I. 1995/3225), regs. 1, 10(1) (with reg. 13)

C16 S. 36 modified (with effect in accordance with reg. 1(2) of the amending S.I.) by The Lloyds Underwriters (Tax) Regulations 2005 (S.I. 2005/3338), regs. 1(1), 11

C17 S. 36 applied by The Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964), reg. 69Z33(3) (as inserted (6.4.2008) by S.I. 2008/705, regs. 1, 5)

C18 S. 36(1) applied (with modifications) (6.4.2006) by The Registered Pension Schemes (Accounting and Assessment) Regulations 2005 (S.I. 2005/3454), regs. 1, 11

F24 37 Neglect: income tax and capital gains tax. U.K.

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Textual Amendments

F24 Ss 37, 38, 39 repealed by Finance Act 1989 (c. 26), ss. 149(2), 187, Sch. 17 Pt. VIII (but not to affect the making of assessments before 1983-84 or for accounting periods ending before 1 April 1983)

[F25 37A Effect of assessment where allowances transferred. U.K.

Where an assessment is made on any person [F26 in a case falling within section 36(1) or (1A)], the fact that the person’s [F27 liability to income tax or] total income for any year of assessment is assessed as greater than it was previously taken to be shall not affect the validity of [F28 any [F29 deduction from net income or tax reduction] made in the case of that person’s spouse] [F30 or civil partner] F31 ... by virtue of F32 ... [F33 section 39, 51 or 52 of ITA 2007] F31 ... ; [F34 and the entitlement in that case of the first-mentioned person for the year in question to any [F29 deduction from net income or tax reduction] shall be treated as correspondingly reduced].]

Textual Amendments

F25 S. 37A inserted (for 1990-91 and subsequent years) by Finance Act 1988 (c. 39), s. 35, Sch. 3 para. 30

F26 Words in s. 37A substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 10; S.I. 2009/403, art. 2(2) (with art. 10)

F27 Words in s. 37A inserted (with effect in accordance with s. 77(7) of the amending Act) by Finance Act 1994 (c. 9), Sch. 8 para. 13(a)

F28 Words in s. 37A substituted (with effect in accordance with s. 77(7) of the amending Act) by Finance Act 1994 (c. 9), Sch. 8 para. 13(b)

F29 Words in s. 37A substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 252(2) (with Sch. 2)

F30 Words in s. 37A inserted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 252(3) (with Sch. 2)

F31 Words in s. 37A repealed (27.8.2002 for specified purposes, 6.4.2003 in so far as not already in force) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2002/1727, art. 2; S.I. 2003/962, art. 2(3)(e), Sch. 1

F32 Words in s. 37A omitted (with effect in accordance with Sch. 1 para. 7 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 1 para. 6(a)(ii)

F33 Words in s. 37A inserted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 252(4) (with Sch. 2)

F34 Words in s. 37A substituted (with effect in accordance with s. 77(7) of the amending Act) by Finance Act 1994 (c. 9), Sch. 8 para. 13(c)

F35 38 Modification of s.37 in relation to partnerships. U.K.

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Textual Amendments

F35 Ss 37, 38, 39 repealed by Finance Act 1989 (c. 26), ss. 149(2), 187, Sch. 17 Pt. VIII (but not to affect the making of assessments before 1983-84 or for accounting periods ending before 1 April 1983)

F36 39 Neglect: corporation tax. U.K.

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Textual Amendments

F36 Ss 37, 38, 39 repealed by Finance Act 1989 (c. 26), ss. 149(2), 187, Sch. 17 Pt. VIII (but not to affect the making of assessments before 1983-84 or for accounting periods ending before 1 April 1983)

40 Assessment on personal representatives. U.K.

(1) For the purpose of the charge of tax on the executors or administrators of a deceased person in respect of the income, or chargeable gains, which arose or accrued to him before his death, the time allowed by section 34, 35 or 36 above shall in no case extend [F37 more than 4 years after the end of] [F38 the year of assessment] in which the deceased died.

(2) [F39 In a case involving a loss of tax brought about carelessly or deliberately by a person who has died (or another person acting on that person's behalf before that person's death)], an assessment on his personal representatives to tax for any year of assessment ending not earlier than six years before his death may be made at any time [F40 not more than 4 years after the end of] [F38 the year of assessment] in which he died.

(3) In [F41 this section] “tax” means income tax or capital gains tax.

[F42 (4) Any act or omission such as is mentioned in section 98B below, on the part of a grouping (as defined in that section) or member of a grouping shall be deemed for the purposes of subsection (2) above to be the act or omission of each member of the grouping.]

Textual Amendments

F37 Words in s. 40(1) substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 11(2); S.I. 2009/403, art. 2(2) (with art. 10)

F38 Words in s. 40(1)(2) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 12; S.I. 1998/3173, art. 2

F39 Words in s. 40(2) substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 11(3)(a); S.I. 2009/403, art. 2(2) (with art. 10)

F40 Words in s. 40(2) substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 11(3)(b); S.I. 2009/403, art. 2(2) (with art. 10)

F41 Words in s. 40(3) substituted by Finance Act 1985 (c. 54), s. 93(7), Sch. 25 para. 5

F42 S. 40(4) inserted (with effect on and after 1 July 1989) by Finance Act 1990 (c. 29), s. 69, Sch. 11 para. 4(2).

Modifications etc. (not altering text)

C19 S. 40 modified (27.7.1993) by 1993 c. 34, s. 173, Sch. 19 Pt. I para. 8

C20 S. 40 modified (with effect in accordance with reg. 1(2) of the amending S.I.) by The Lloyds Underwriters (Tax) Regulations 2005 (S.I. 2005/3338), regs. 1(1), 11

C21 S. 40(1)(2) applied (with modifications) (19.4.1991) by The Lloyd’s Underwriters (Tax) (1988–89) Regulations 1991 (S.I. 1991/851), regs. 1, 3(2), Sch. 1

S. 40(1)(2) extended (with modifications) (28.3.1992) by The Lloyd’s Underwriters (Tax) (1989—90) Regulations1992 (S.I. 1992/511), regs. 1,3, Sch. 1

C22 S. 40(1)(2) applied (with modifications) (23.3.1993) by The Lloyd’s Underwriters (Tax) (1990–91) Regulations 1993 (S.I. 1993/415), regs. 1(1), 3(2), Sch.1

C23 S. 40(1)(2) applied (with modifications) (with effect in accordance with reg. 1(1) of the amending S.I.) by The Lloyds Underwriters (Tax) (1991-92) Regulations 1994 (S.I. 1994/728), reg. 3(2), Sch. 1

C24 S. 40(1)(2) modified (with effect in accordance with reg. 6(3) of the amending S.I.) by The Lloyds Underwriters (Tax) (1992–93 to 1996–97) Regulations 1995 (S.I. 1995/352), regs. 1(1), 6(1)(2)

C25 S. 40(1)(2) modified (with effect in accordance with reg. 7(3) of the amending S.I.) by The Lloyds Underwriters (Tax) (1992–93 to 1996–97) Regulations 1995 (S.I. 1995/352), regs. 1(1), 7(1)(2)

F43 41 Leave of General or Special Commissioners required for certain assessments. U.K.

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Textual Amendments

F43 S. 41 repealed by Finance Act 1989 (c. 26), ss. 149(2), 187, Sch. 17 Pt. VIII (but not to affect the making of assessments before 1983-84 or for accounting periods ending before 1 April 1983)