(1)In Part 4 of the Taxes Management Act 1970 (assessment and claims), after section 43B insert—
(1)Where—
(a)a return is amended under section 28A(2)(b), 28B(2)(b) or 28B(4), and
(b)the amendment is made for the purpose of making good to the Crown any loss of tax attributable to fraudulent or negligent conduct on the part of the taxpayer or a person acting on his behalf,
sections 36(3) and 43(2) apply in relation to the amendment as they apply in relation to any assessment under section 29.
(2)Where—
(a)a return is amended under section 28A(2)(b), 28B(2)(b) or 28B(4), and
(b)the amendment is not made for the purpose mentioned in subsection (1)(b) above,
sections 43(2), 43A and 43B apply in relation to the amendment as they apply in relation to any assessment under section 29.
(3)References to an assessment in sections 36(3), 43(2), 43A and 43B, as they apply by virtue of subsection (1) or (2) above, shall accordingly be read as references to the amendment of the return.
(4)Where it is necessary to make any adjustment by way of an assessment on any person—
(a)in order to give effect to a consequential claim, or
(b)as a result of allowing a consequential claim,
the assessment is not out of time if it is made within one year of the final determination of the claim.
For this purpose a claim is not taken to be finally determined until it, or the amount to which it relates, can no longer be varied, on appeal or otherwise.
(5)In subsection (4) above “consequential claim” means any claim, supplementary claim, election, application or notice that may be made or given under section 36(3), 43(2) or 43A (as it applies by virtue of subsection (1) or (2) above or otherwise).”.
(2)In section 43A of that Act (further assessments: claims etc), in subsection (2A) (elections to which extension of time limit does not apply) for the words from “an election under” to the end substitute “an election under—
(a)section 257BA of the principal Act (election as to transfer of married couple’s allowance),
(b)Schedule 13B to that Act (elections as to transfer of children’s tax credit), or
(c)section 35(5) of the Taxation of Chargeable Gains Act 1992 (election for assets to be re-based to 1982).”.
(3)So far as it applies in relation to an amendment of a return, this section applies only where the notice of the amendment is issued after the day on which this Act is passed.