Finance Act 2008

TMA 1970 U.K.

1 U.K. TMA 1970 is amended as follows.

2 U.K. In section 28C(5)(a) (time limit for determination of tax where no return delivered and self-assessment superseding determination), for “five years” substitute “ 3 years ”.

Commencement Information

I1 Sch. 39 para. 2 in force at 1.4.2010 for the purposes of the amendment made by that paragraph by S.I. 2009/403, art. 2(2) (with art. 10)

3 U.K. In section 29(4) (assessment where loss of tax discovered), for “is attributable to fraudulent or negligent conduct on the part of” substitute “ was brought about carelessly or deliberately by ”.

Commencement Information

I2 Sch. 39 para. 3 in force at 1.4.2010 for the purposes of the amendment made by that paragraph by S.I. 2009/403, art. 2(2) (with art. 10)

4 U.K. In section 30B(5) (amendment of partnership statement where loss of tax discovered), for “is attributable to fraudulent or negligent conduct on the part of” substitute “ was brought about carelessly or deliberately by ”.

Commencement Information

I3 Sch. 39 para. 4 in force at 1.4.2010 for the purposes of the amendment made by that paragraph by S.I. 2009/403, art. 2(2) (with art. 10)

5 U.K. In section 33(1) (claim for error or mistake), for “not later than five years after the 31st January next following” substitute “ not more than 4 years after the end of ”.

Commencement Information

I4 Sch. 39 para. 5 in force at 1.4.2010 for the purposes of the amendment made by that paragraph by S.I. 2009/403, art. 2(2) (with art. 10)

6 U.K. In section 33A(2) (error or mistake in partnership return), for “not later than 31st January of Year 6” substitute “ not more than 4 years after the end of the year of assessment in question, or in which the relevant period ends, ”.

Commencement Information

I5 Sch. 39 para. 6 in force at 1.4.2010 for the purposes of the amendment made by that paragraph by S.I. 2009/403, art. 2(2) (with art. 10)

7 (1) Section 34 (ordinary time limit for assessments) is amended as follows. U.K.

(2) In subsection (1), for “not later than five years after the 31st January next following” substitute “ not more than 4 years after the end of ”.

(3) Accordingly, in the heading, for “six years” substitute “ 4 years ”.

Commencement Information

I6 Sch. 39 para. 7 in force at 1.4.2010 for the purposes of the amendments made by that paragraph by S.I. 2009/403, art. 2(2) (with art. 10)

8 U.K. In section 35 (time limit: income received after year for which it is assessable), for “within six years after” substitute “ not more than 4 years after the end of ”.

Commencement Information

I7 Sch. 39 para. 8 in force at 1.4.2010 for the purposes of the amendment made by that paragraph by S.I. 2009/403, art. 2(2) (with art. 10)

9 (1) Section 36 (fraudulent or negligent conduct) is amended as follows. U.K.

(2) For subsection (1) substitute—

“(1) An assessment on a person in a case involving a loss of income tax or capital gains tax brought about carelessly by the person may be made at any time not more than 6 years after the end of the year of assessment to which it relates (subject to subsection (1A) and any other provision of the Taxes Acts allowing a longer period).

(1A) An assessment on a person in a case involving a loss of income tax or capital gains tax —

(a) brought about deliberately by the person,

(b) attributable to a failure by the person to comply with an obligation under section 7, or

(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),

may be made at any time not more than 20 years after the end of the year of assessment to which it relates (subject to any provision of the Taxes Acts allowing a longer period).

(1B) In subsections (1) and (1A) references to a loss brought about by the person who is the subject of the assessment include a loss brought about by another person acting on behalf of that person.”

(3) In subsection (2)—

(a) for “Where the person in default” substitute “ Where the person mentioned in subsection (1) or (1A) (“the person in default”) ”, and

(b) for “subsection (1) above” substitute “ subsection (1A) or (1B) ”.

(4) In subsection (3), after “(1)” insert “ or (1A) ”.

(5) In subsection (4), for “subsection (1)” substitute “ subsections (1) and (1A) ”.

(6) Accordingly, for the heading substitute “ Loss of tax brought about carelessly or deliberately etc ”.

Commencement Information

I8 Sch. 39 para. 9 in force at 1.4.2010 for the purposes of the amendments made by that paragraph by S.I. 2009/403, art. 2(2) (with arts. 7, 10)

10 U.K. In section 37A (effect of assessment where allowances transferred), for the words from “for the purpose” to “conduct” substitute “ in a case falling within section 36(1) or (1A) ”.

Commencement Information

I9 Sch. 39 para. 10 in force at 1.4.2010 for the purposes of the amendment made by that paragraph by S.I. 2009/403, art. 2(2) (with art. 10)

11 (1) Section 40 (assessment on personal representatives) is amended as follows. U.K.

(2) In subsection (1), for “beyond the end of the period of three years beginning with the 31st January next following” substitute “ more than 4 years after the end of ”.

(3) In subsection (2)—

(a) for the words from the beginning to “died” substitute “ In a case involving a loss of tax brought about carelessly or deliberately by a person who has died (or another person acting on that person's behalf before that person's death) ”, and

(b) for “before the end of the period of three years beginning with the 31st January next following” substitute “ not more than 4 years after the end of ”.

Commencement Information

I10 Sch. 39 para. 11 in force at 1.4.2010 for the purposes of the amendments made by that paragraph by S.I. 2009/403, art. 2(2) (with art. 10)

12 U.K. In section 43(1) (time limit for making claims), for “five years after the 31st January next following” substitute “ 4 years after the end of ”.

Commencement Information

I11 Sch. 39 para. 12 in force at 1.4.2010 for the purposes of the amendment made by that paragraph by S.I. 2009/403, art. 2(2) (with art. 10)

13 U.K. In section 43A(1)(b) (further assessments: claims etc), for the words from “attributable” to the end substitute “ brought about carelessly or deliberately by that person or by someone acting on behalf of that person. ”

Commencement Information

I12 Sch. 39 para. 13 in force at 1.4.2010 for the purposes of the amendment made by that paragraph by S.I. 2009/403, art. 2(2) (with art. 10)

14 U.K. In section 43C(1)(b) (consequential claims etc), for “attributable to fraudulent or negligent conduct on the part of” substitute “ brought about carelessly or deliberately by ”.

Commencement Information

I13 Sch. 39 para. 14 in force at 1.4.2010 for the purposes of the amendment made by that paragraph by S.I. 2009/403, art. 2(2) (with art. 10)

15 U.K. In section 118 (interpretation) insert at the end—

“(5) For the purposes of this Act a loss of tax or a situation is brought about carelessly by a person if the person fails to take reasonable care to avoid bringing about that loss or situation.

(6) Where—

(a) information is provided to Her Majesty's Revenue and Customs,

(b) the person who provided the information, or the person on whose behalf the information was provided, discovers some time later that the information was inaccurate, and

(c) that person fails to take reasonable steps to inform Her Majesty's Revenue and Customs,

any loss of tax or situation brought about by the inaccuracy shall be treated for the purposes of this Act as having been brought about carelessly by that person.

(7) In this Act references to a loss of tax or a situation brought about deliberately by a person include a loss of tax or a situation that arises as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.”

Commencement Information

I14 Sch. 39 para. 15 in force at 1.4.2010 for the purposes of the amendments made by that paragraph by S.I. 2009/403, art. 2(2) (with art. 10)