Finance Act 2013

PART 4 HMRC determination where no return delivered

Determination of tax chargeable if no return delivered

18 (1) This paragraph applies where condition A or condition B is met.

(2) Condition A is that—

(a) an officer of Revenue and Customs has reason to believe that a person (“P”) is chargeable to tax for a chargeable period in respect of a single-dwelling interest,

(b) P has not made an annual tax on enveloped dwellings return for the period in respect of the interest, and

(c) the relevant filing date has passed.

(3) Condition B is that—

(a) an officer of Revenue and Customs has reason to believe that additional tax is payable by a person (“P”) under section 163(2) for a chargeable period in respect of a single-dwelling interest,

(b) P has not made a return of the adjusted chargeable amount for the period in respect of the interest, and

(c) the relevant filing date has passed.

(4) “The relevant filing date” means the date by which the officer believes a return was required to be delivered.

(5) The officer may make a determination (an “HMRC determination”) to the best of the officer’s information and belief of the amount of tax to which P is chargeable for the period concerned with respect to the interest.

(6) Notice of the determination must be given to P and must state the date on which it is issued.

(7) No HMRC determination may be made more than 4 years after the end of the chargeable period to which it relates.

Determination to have effect as a self assessment

19 (1) A determination under paragraph 18 has effect for enforcement purposes as if it were a self assessment made by P.

(2) In sub-paragraph (1) “for enforcement purposes” means for the purposes of section 165 and Schedule 12 to FA 2003 (collection and recovery of tax etc).

(3) Nothing in this paragraph affects any liability of a person to a penalty for failure to deliver a return.

Determination superseded by actual self assessment

20 (1) If after an HMRC determination has been made P delivers a return for the chargeable period with respect to the interest in question, the self assessment included in that return supersedes the determination.

(2) Sub-paragraph (1) does not apply to a return delivered—

(a) more than 4 years after the power to make the determination first became exercisable, or

(b) more than 12 months after the date of the determination,

whichever is the later.

(3) Where—

(a) proceedings have been begun for the recovery of any tax charged by an HMRC determination, and

(b) before the proceedings are concluded the determination is superseded by a self assessment,

the proceedings may be continued as if they were proceedings for the recovery of so much of the tax charged by the self assessment as is due and payable and has not yet been paid.