Finance Act 2003

Time limit for assessment U.K.

31 (1) The general rule is that no assessment may be made more than [F1 4 years] after the effective date of the transaction to which it relates. U.K.

[F2 (2) An assessment of a person to tax in a case involving a loss of tax brought about carelessly by the purchaser or a related person may be made at any time not more than 6 years after the effective date of the transaction to which it relates (subject to sub-paragraph (2A)).

(2A) An assessment of a person to tax in a case involving a loss of tax—

(a) brought about deliberately by the purchaser or a related person,

(b) attributable to a failure by the person to comply with an obligation under section 76(1) or paragraph 3(3)(a), 4(3)(a) or 8(3)(a) of Schedule 17A, F3 ...

(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), [F4 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 effective date of the transaction to which it relates.]

(3) An assessment under paragraph 29 (assessment to recover excessive repayment of tax) is not out of time—

(a) in a case where notice of enquiry is given into the land transaction return delivered by the person concerned, if it is made before the enquiry is completed;

(b) in any case, if it is made within one year after the repayment in question was made.

(4) Where the purchaser has died—

(a) any assessment on the personal representatives of the deceased must be made within [F5 4 years] after his death, and

(b) an assessment shall not be made by virtue of sub-paragraph (2) in respect of a transaction of which the effective date was more than six years before the death.

(5) Any objection to the making of an assessment on the ground that the time limit for making it has expired can only be made on an appeal against the assessment.

[F6 (6) In this paragraph “related person”, in relation to a purchaser, means—

(a) a person acting on behalf of the purchaser, or

(b) a person who was a partner of the purchaser at the relevant time.]

Textual Amendments

F1 Words in Sch. 10 para. 31(1) substituted (1.4.2011) by Finance Act 2009 (c. 10), s. 99(2), Sch. 51 para. 15(5); S.I. 2010/867, art. 2(2)

F2 Sch. 10 para. 31(2)(2A) substituted for Sch. 10 para. 31(2) (1.4.2011) by Finance Act 2009 (c. 10), s. 99(2), Sch. 51 para. 15(6); S.I. 2010/867, art. 2(2)

F3 Word in Sch. 10 para. 31(2A) omitted (17.7.2014) by virtue of Finance Act 2014 (c. 26), s. 277(5)(a) (with ss. 269-271)

F4 Sch. 10 para. 31(2A)(d) and preceding word inserted (17.7.2014) by Finance Act 2014 (c. 26), s. 277(5)(b) (with ss. 269-271)

F5 Words in Sch. 10 para. 31(4)(a) substituted (1.4.2011) by Finance Act 2009 (c. 10), s. 99(2), Sch. 51 para. 15(7); S.I. 2010/867, art. 2(2)

F6 Sch. 10 para. 31(6) inserted (1.4.2011) by Finance Act 2009 (c. 10), s. 99(2), Sch. 51 para. 15(8); S.I. 2010/867, art. 2(2)