Taxes Management Act 1970

29 Assessing procedure. [1964(M) s.5(1) 9; 1965 Sch.X 1(1); 1966 Sch.VI 6(1), 17(1), 27(1); 1967 Sch.XI 10(3).] U.K.

(1) Except as otherwise provided, all assessments to tax shall be made by an inspector, and—

(a) if the inspector is satisfied that any return under the Taxes Acts affords correct and complete information concerning profits in respect of which tax is chargeable, he shall make an assessment accordingly,

(b) if it appears to the inspector that there are any profits in respect of which tax is chargeable and which have not been included in a return under Part II of this Act, or if the inspector is dissatisfied with any return under Part II of this Act, he may make an assessment to tax to the best of his judgment F1 .

[(c) Where income tax is charged for a year of assessment in respect of income arising in that year, the inspector may make an assessment during that year to the best of his judgement, by reference to actual income or estimated income (whether from any particular source or generally) or partly by reference to one and partly by reference to the other F2 ].

[(1A) Where an assessment is made by virtue of subsection (1)(c) above, any necessary adjustments shall be made after the end of the year (whether by way of assessment, repayment of tax or otherwise) to secure that tax is charged in respect of income actually arising in the year F3 .]

[(2) Assessments under [sections 426to 430of the principal ActF4 ]shall be made by the inspector or the BoardF5 .]

M1 (3) If an inspector or the Board discover—

(a) that any profits which ought to have been assessed to tax have not been assessed, or

(b) that an assessment to tax is or has become insufficient, or

(c) that any relief which has been given is or has become excessive,

the inspector or, as the case may be, the Board may make an assessment in the amount, or the further amount, which ought in his or their opinion to be charged. F6

M2 (4) All income tax . . . F7 which is charged for any year on any person under subsection (3)(c) above may, notwithstanding that it was chargeable under more than one Schedule, be included in one assessment and an appeal against an assessment under subsection (3)(c) above shall be to the Commissioners to whom an appeal would lie on a claim for the relief in connection with which the assessment is made.

M3 (5) Notice of any assessment to tax shall be served on the person assessed and shall state [the date on which it is issued and F8 ] the time within which any appeal against the assessment may be made F9 .

M4 (6) After the notice of assessment hasbeen served on the person assessed, the assessment shall not be altered except in accordance with the express provisions of the Taxes Acts.

M5 (7) Assessments to income tax . . . F7 which are under any provision in the Income Tax Acts to be made by the Board shall be made in accordance with this section, and as if in subsection (1)(a) and (b) above the references to the inspector were references to the Board.

M6 (8) In this section “profits”—

(a) in relation to income tax, means income,

(b) in relation to capital gains tax, means chargeable gains,

(c) in relation to corporation tax, means profits as computed for the purposes of that tax,

M7 [(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F10

and “return under Part II of this Act”F11 includes a return under that Part as extended by section [284(4) F12 ] of the principal Act (returns of income of husband and wife).

Textual Amendments

F1 SeeIncome and Corporation Taxes Act 1988 (c. 1, SIF 63:1) s.205—formal assessments underSch.Eunnecessary in certain cases.

F2 Finance Act 1988 (c. 39, SIF 63:1,2) s. 119(2)

F3 Finance Act 1988 (c. 39, SIF 63:1,2) s. 119(3).For previous (1A) (DLT)see 1987edition.

F4 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 32.

F5 Finance Act 1972 s.111andSch.24 para.6for1973—74et seq.Repealed by Finance Act 1989 s. 187and Sch. 17 Part Vin relation to accounting periods beginning after 31March 1989.

F6 See—Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) s. 588(5)—assessment under s. 29(3)to recover relief for costs of training where the time limit conditions in s. 589are subsequently not met. Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 14 para 7(3)(a)—application of (c) to sums claimed under s. 266(5)(b)to which the claimant was not entitled.Finance Act 1989 s. 57(3)application of (c) to medical insurance relief.

F7 Words omitted repealed for1973—74et seq. byFinance Act 1971 ss.37and38andSch.14 Part II.

F8 Words added byFinance (No. 2) Act 1975 s.44(5)for notices of assessment issued after31July1975.

F9 See alsoIncome and Corporation Taxes Act 1988 (c. 1, SIF 63:1) ss.285to286—notice to wife or her executors, etc., to pay outstanding tax assessed on her husband and attributable to her income.

F10 A development land tax provision added byDevelopment Land Tax Act 1976 (c. 24) Sch.8 para.2. Development Land Tax Act 1976repealed byFinance Act 1985 s.98(6)andSch.27 Part X.]

F11 Words repealed by Finance Act 1988 (c. 39, SIF 63:1,2) s. 148and Sch. 14 Part VIIIfor 1990-91and subsequent years.

F12 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para 32.

Modifications etc. (not altering text)

C1 S. 29 excluded (16.7.1992) by Income and Corporation Taxes Act 1988 (c. 1), Sch. 3 para. 6E (which was inserted (16.7.1992 having effect in relation to transactions effectd on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras. 2(2), 6)

C2 S. 29(3)(c) extended by Finance Act 1991 (c. 31, SIF 63:1), s. 33(3)(a)

Marginal Citations

M1 1964 (M) s.(3)

M2 1964 (M) s.5(4).

M3 1964 (M) s.5(5).

M4 1964 (M) s.5(6).

M5 1964 (M) s.5(7).

M6 1964(M) s.5; 1965 Sch.X1(1); 1966 Sch.VI 27(1).

M7 1964 (M) s.5(9).