Taxes Management Act 1970

[F1 4 (1) This paragraph applies where— U.K.

(a) a person who [F2 claims that Chapter 16 of Part 2 of ITTOIA 2005] shall have effect for two [F3 or five] consecutive years of assessment F4 ... makes or amends a claim for relief under any other provision of the Income Tax Acts for [F5 any] of those years; and

(b) the making or amendment of the claim would be out of time but for [F6 section 224(4) of that Act] .

(2) The claim or amendment shall relate to [F7 the last of the two or five years].

(3) Subject to sub-paragraph (4) below, in so far as the claim or amendment relates to income of [F8 an earlier year], the amount claimed, or (as the case may be) the increase or reduction in the amount claimed, shall be equal to the difference between—

(a) the amount in which the person is chargeable to tax for the earlier year (“amount A”); and

(b) the amount in which he would be so chargeable on the assumption that effect could be, and were, given to the claim or amendment in relation to that year (“amount B”).

(4) Where effect has been given to one or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the associated claim or claims in relation to the earlier year.

(5) In so far as the claim or amendment relates to income of [F9 an earlier year], effect shall be given to the claim or amendment in relation to [F10 the last of the two or five years] by an increase in the amount of tax payable or, as the case may require, in the aggregate amount given by section 59B(1)(b) of this Act.

(6) In this paragraph “amendment” shall be construed accordingly.]

Textual Amendments

F1 Sch. 1B inserted (with effect in accordance with s. 128(11) of the amending Act) by Finance Act 1996 (c. 8), s. 128(2), Sch. 17

F2 Words in Sch. 1B para. 4(1)(a) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 382(4)(a) (with Sch. 2)

F3 Words in Sch. 1B para. 4(1) inserted (with effect in accordance with s. 25(12) of the amending Act) by Finance Act 2016 (c. 24), s. 25(11)(a)(i)

F4 Words in Sch. 1B para. 4(1) omitted (with effect in accordance with s. 25(12) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 25(11)(a)(ii)

F5 Word in Sch. 1B para. 4(1) substituted (with effect in accordance with s. 25(12) of the amending Act) by Finance Act 2016 (c. 24), s. 25(11)(a)(iii)

F6 Words in Sch. 1B para. 4(1)(b) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 382(4)(b) (with Sch. 2)

F7 Words in Sch. 1B para. 4(2) substituted (with effect in accordance with s. 25(12) of the amending Act) by Finance Act 2016 (c. 24), s. 25(11)(b)

F8 Words in Sch. 1B para. 4(3) substituted (with effect in accordance with s. 25(12) of the amending Act) by Finance Act 2016 (c. 24), s. 25(11)(c)

F9 Words in Sch. 1B para. 4(5) substituted (with effect in accordance with s. 25(12) of the amending Act) by Finance Act 2016 (c. 24), s. 25(11)(d)(i)

F10 Words in Sch. 1B para. 4(5) substituted (with effect in accordance with s. 25(12) of the amending Act) by Finance Act 2016 (c. 24), s. 25(11)(d)(ii)