Taxes Management Act 1970

103 [Time limits for penalties. U.K.

(1) Subject to subsection (2) below, where the amount of a penalty is to be ascertained by reference to tax payable by a person for any period, the penalty may be determined by an officer of the Board, or proceedings for the penalty may be commenced before the Commissioners or a Court—

(a) at any time within six years after the date on which the penalty was incurred, or

(b) at any later time within three years after the final determination of the amount of tax by reference to which the amount of the penalty is to be ascertained.

(2) Where the tax was payable by a person who has died, and the determination would be made in relation to his personal representatives, section (1)(b) above does not apply if the tax was charged in an assessment made later than six years after the end of the chargeable period for which it was charged.

(3) A penalty under section 99 of this Act may be determined by an officer of the Board, or proceedings for such a penalty may be commenced before a court, at any time within twenty years after the date on which the penalty was incurred.

(4) A penalty to which neither subsection (1) nor subsection (3) above applies may be so determined, or proceedings for such a penalty may be commenced before the Commissioners or a court, at any time within six years after the date on which the penalty was incurred or began to be incurred F1 .]

Textual Amendments

F1 Finance Act 1989 s. 169.Previously

“Time limit for recovery of penalties. 103.—(1) Proceedings for the recovery of any penalty incurred under the Taxes Acts in connection with or in relation to tax may be commenced at any time within six years next after the date on which it was incurred, or at any later time allowed under the following provisions of this section(a).(2) Proceedings for the recovery of any penalty from any person in connection with or in relation to any tax covered by any assessment may, where any form of fraud or wilful default has been committed by him or on his behalf in connection with or in relation to that tax, be commenced at any time within three years from the final determination of the amount of tax covered by the assessment(b):Provided that this subsection shall not extend the time for the bringing of any proceedings against the personal representatives of any person by whom or on whose behalf any form of fraud or wilful default has been committed.(3) Where the amount of any penalty to which a person is liable under the Taxes Acts is determined by reference to tax(c) charged in an assessment for any chargeable period which is made not later than six years after the end of that chargeable period, proceedings for the recovery of the penalty may be commenced within three years from the final determination of the amount of that tax.[(3A)—A development land tax provision added byDevelopment Land Tax Act 1976 Sch.8 para.28. Development Land Tax Act 1976repealed byFinance Act 1985 s.98(6)andSch.27 Part X.](4) In any proceedings for the recovery of a penalty which could not have been commenced but for subsection (3)(c) above, any tax charged in an assessment made under section 37, 39 or 40(2) of this Act shall be left out of account in determining the amount of the penalty(d).”

(a)

See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 5 para. 10(5)—s. 100not to apply to certain penalties on underwriters' agents.

(b)

SeeTaxes Management Act 1970 (c. 9, SIF 63:1) s.119andSch.4 para.11—not applicable to tax for any year before1936—37.

(c)

Amended in relation to development land tax byDevelopment Land Tax Act 1976 Sch.8 para.28. Development Land Tax Act 1976repealed byFinance Act 1985 s.98(6)andSch.27 Part X.

(d)

SeeFinance Act 1966 s.27andSch.6 para.23(7)(b)andS.I. 1966 No.1191, regn.4 (inPart III Vol.5)—application of this section in relation to penalties underpara.23 (transitional relief to companies with overseas trading income).

Modifications etc. (not altering text)

C1 Ss. 102-104 power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 102-104 power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)