Introduction Details of the Schedule
2.Paragraph 1 provides for Schedule 7 to the Finance Act (FA) 1994 to be amended. The following paragraphs introduce and change time limits that apply to IPT claims and assessments.
3.Paragraph 2 extends the time limit for recovering overpaid IPT at paragraph 8(4) of Schedule 7 to FA 1994 from 3 to 4 years.
4.Paragraph 3 extends the time limit for claiming interest from HM Revenue & Customs (HMRC) at paragraph 22(9) of Schedule 7 to FA 1994 from 3 to 4 years.
5.Paragraph 4(2) changes the normal IPT assessing time limit from 3 to 4 years. It also restructures paragraph 26(1) of Schedule 7 to FA 1994 so that the time limit is geared to “the relevant event”, but without any change of effect.
6.Paragraph 4(3) inserts new paragraph 26(1A) into Schedule 7 to FA 1994 which defines “the relevant event”. This definition is the same as that previously given at sub-paragraph 26(1) of Schedule 7 to FA 1994.
7.Paragraph 4(4) makes a consequential amendment.
8.Paragraph 4(5) replaces paragraph 4(4) of Schedule 7 to FA 1994 with new paragraphs 4(4) and 4(5). The existing assessing time limit of 20 years in cases of fraud or where a person has failed to register is retained, but the reference to a tax loss due to “fraud” is changed to a tax loss “brought about deliberately”. This is in line with changes made in Schedule 24 to FA 2007 (penalties for incorrect returns) and elsewhere. It is also made clear that a loss brought about deliberately includes a loss resulting from a deliberate inaccuracy in a document given to HMRC.
9.Paragraph 5 provides for the Inheritance Tax Act 1984 (IHTA) to be amended. The following paragraphs introduce and change time limits that apply to IHT claims and assessments.
10.Paragraph 6 inserts new section 131(2ZA) into IHTA. It introduces a new time limit of 4 years from the transferor’s death for a claim under section 131(2)(b) of IHTA.
11.Paragraphs 7 to 10 introduce a new time limit of 4 years under the relevant sections of IHTA.
12.Paragraph 11(2) amends section 240(2) of IHTA. This reduces the period allowed for HMRC to bring proceedings to recover additional tax under section 240(2) of IHTA (i.e. in a case where an account has been delivered) from 6 to 4 years.
13.Paragraph 11(3) replaces section 240(3) of IHTA with new subsections (3) to (6). New subsection (4) provides that the time limit remains at 6 years where the underpayment has been brought about carelessly. New subsection (5) increases the time limit to 20 years where the loss of tax is brought about deliberately. New subsection (6) provides that the new time limit at new subsection (7) applies in cases where no account has been delivered, and there is no deliberate loss of tax. New subsection (7) provides a 20 year time limit on proceedings to recover additional tax in such cases. New subsection (8) provides that these behaviour descriptions include the behaviour of a settlor in certain cases.
14.Paragraph 12 inserts new section 240A into IHTA.
15.New subsection (1) provides that the new section supplements the new time limits in section 240 of IHTA.
16.New subsection (2) provides that a loss of tax is brought about carelessly by any person if the person fails to take reasonable care to avoid bringing about that loss. This corresponds with the definition of careless at paragraph 3(1)(a) of Schedule 24 to FA 2007.
17.New subsection (3) provides that where information is provided to HMRC by someone who later discovers that the information was inaccurate but does not take reasonable steps to inform HMRC, any loss of tax brought about by this is to be treated as having been brought about carelessly. This corresponds with the definition at paragraph 3(2) of Schedule 24 to FA 2007.
18.New subsection (4) provides that where a loss of tax is brought about by a deliberate inaccuracy in a document, it is to be treated as brought about deliberately. This is to ensure that in cases where a penalty is due for deliberate inaccuracy under paragraph 3 of Schedule 24 to FA 2007, the corresponding increase in time limit also occurs.
19.Paragraph 13 amends section 241(1) of IHTA by reducing the period in which repayment of an excess tax payment may be claimed from 6 to 4 years.
20.Paragraph 14 provides for FA 2003 to be amended. The following paragraphs introduce and change time limits that apply to SDLT claims and assessments.
21.Paragraph 15(2) amends paragraph 25(3) of Schedule 10 to FA 2003 reducing the period in which HMRC may make a determination of SDLT chargeable if no return is delivered from 6 to 4 years.
22.Paragraph 15(3) amends paragraph 27(2)(a) of Schedule 10 to FA 2003 by reducing the period during which a self assessment must be made if it is to replace a determination from 6 to 4 years.
23.Paragraph 15(5) amends paragraph 31(1) of Schedule 10 to FA 2003. This provides that the normal SDLT assessing time limit is reduced from 6 to 4 years.
24.Paragraph 15(6) replaces paragraph 31(2) of Schedule 10 to FA 2003 with new sub-paragraphs (2) and (2A).
25.New sub-paragraph (2) provides that the time limit remains at 6 years where there is a loss of tax brought about carelessly.
26.New sub-paragraph (2A) provides that it is increased to 20 years where the loss of tax is brought about deliberately by the purchaser or a “related person”. This increase to 20 years also occurs where the loss of tax is attributable to a person’s failure to notify HMRC that they are liable to tax, as required by section 76(1) or paragraph 3(3)(a), 4(3)(a) or 8(3)(a) of Schedule 17A to FA 2003, or where a person has failed to disclose an avoidance scheme as required by sections 309, 310 or 313 of FA 2004.
27.Paragraph 15(7) amends paragraph 31(4)(a) of Schedule 10 to FA 2003. This increases the period during which HMRC may make an assessment on personal representatives from 3 to 4 years.
28.Paragraph 15(8) inserts new paragraph 31(6) into Schedule 10 to FA 2003. It defines a “related person” in relation to a purchaser for the purpose of the new behaviour-related time limits.
29.Paragraph 15(9) inserts new paragraph 31A into Schedule 10 to FA 2003. New sub-paragraph (1) provides that this supplements the time limits in new sub-paragraphs (2) and (2A).
30.New sub-paragraph (2) provides that a loss of tax is brought about carelessly by any person if the person fails to take reasonable care to avoid bringing about that loss. This corresponds with the definition of careless at sub-paragraph 3(1)(a) of Schedule 24 to FA 2007.
31.New sub-paragraph (3) provides that where information is provided to HMRC by someone who later discovers that the information was inaccurate but does not take reasonable steps to inform HMRC, any loss of tax brought about by this is to be treated as having been brought about carelessly. This corresponds with the definition at paragraph 3(2) of Schedule 24 to FA 2007.
32.New sub-paragraph (4) provides that where a loss of tax is brought about by a deliberate inaccuracy in a document, it is to be treated as brought about deliberately. This is to ensure that in cases where a penalty is due for deliberate inaccuracy under paragraph 3 of Schedule 24 to FA 2007, the corresponding increase in time limit also occurs.
33.Paragraph 15(10) amends paragraph 34(2) of Schedule 10 to FA 2003 by reducing the period in which a claim for relief may be made in respect of a mistake in a return from 6 to 4 years.
34.Paragraph 16(2) amends paragraph 8(2) of Schedule 14 to FA 2003. It reduces the period during which HMRC may make a determination of penalties or bring proceedings for penalties from 6 to 4 years from the date the penalty was incurred or, in the case of daily penalties, first incurred. This date is referred to by later paragraphs as “the relevant date”, from which certain time limits run.
35.Paragraph 16(3) amends sub-paragraph 8(3) of Schedule 14 to FA 2003. This provides that the 3-year time limit on making a determination of penalties or bringing proceedings is subject to the longer time limits allowed by paragraph 8 of Schedule 14 to FA 2003.
36.Paragraph 16(4) inserts new paragraphs 8(4A) to (4C) into Schedule 14 to FA 2003. The time limit remains at 6 years where the penalty relates to a loss of tax brought about carelessly and is increased to 20 years where it relates to a loss of tax brought about deliberately or where certain obligations have not been met. The extended time limits for assessing penalties mirror those for assessing a loss of tax and the new rules in paragraph 31A of Schedule 10 to FA 2003, described above, also apply.
37.Paragraph 17 provides for the Oil Taxation Act 1975 (OTA 1975) to be amended. The following paragraphs introduce and change time limits that apply to PRT claims and assessments.
38.Paragraph 18(2) corrects the entry in the Table at Schedule 2 to OTA 1975 relating to section 33(1) of the Taxes Management Act 1970 (TMA). This does not change the effect of the provision.
39.Paragraph 18(3) omits the entries in the Table relating to sections 34 and 36 of TMA (assessing time limits) so that those provisions do not apply to PRT. Instead the following paragraphs make similar provision in OTA 1975.
40.Paragraph 19 inserts new paragraph 10(1A) into Schedule 2 to OTA 1975. It provides that the normal PRT assessing time limit is 4 years instead of the current 6 years.
41.Paragraph 20(2) inserts new paragraphs 12(1A) and (1B) into Schedule 2 to OTA 1975.
42.New sub-paragraph (1A) provides a normal 4 year time limit for the making or amending of PRT assessments
43.New sub-paragraph (1B) provides that the time limit does not apply to an amendment made to relieve allowable losses or made in consequence of allowing such relief.
44.Paragraph 20(3) amends paragraph 12(2) of Schedule 2 to OTA 1975. It reduces the normal time limit for making a further assessment from 6 to 4 years.
45.Paragraph 21 amends paragraph 12A(1) of Schedule 2 to OTA 1975. It reduces the period during which HMRC may make an assessment from 5 to 4 years.
46.Paragraph 22 inserts new paragraph 12B into Schedule 2 to OTA 1975. This provides extended assessing time limits in cases where a “relevant situation”, defined at new sub-paragraph (3), has been brought about carelessly or deliberately by the participator or a person acting on the participator’s behalf.
47.New sub-paragraph (1) provides that where the relevant situation is brought about carelessly, the time limit is 6 years.
48.New sub-paragraph (2) provides that where the relevant situation is brought about deliberately, the time limit is 20 years.
49.New sub-paragraph (3) defines “relevant situation” to be a loss of tax, an underassessment of profit, an overstated loss or a lack of any assessment.
50.New sub-paragraph (4) defines “relevant chargeable period”, from the end of which these time limits run. This is usually the chargeable period to which the assessment relates, but if the assessment is under paragraph 12(2) of Schedule 2 to OTA 1975, i.e. an assessment where the deficiency results from an excessive allowable loss accruing in a subsequent period, then it is that subsequent period.
51.New sub-paragraph (5) makes provision for where a participator acts in partnership with others. This provision was previously in the Table at paragraph 1(1) of Schedule 2 to OTA 1975.
52.New sub-paragraph (6) requires HMRC to take into account any relief or allowance the assessed person would have been entitled to in the period covered by the assessment. This mirrors the provision in section 36 of TMA which previously applied to PRT.
53.New sub-paragraph (7) clarifies that this requirement only applies if the person assessed so requires, again mirroring section 36 of TMA.
54.New sub-paragraph (8) applies the definitions of “careless” and “deliberate” at section 118 of TMA, to PRT, aligning these definitions with those for penalties in Schedule 24 to FA 2007.
55.New sub-paragraph (9) clarifies that where a person takes over the position of responsible person for an oilfield and they discover that information provided by their predecessor was inaccurate, then section 118(6)(b) of TMA applies as if the information had been provided by themselves.
56.Paragraph 23(2) amends paragraph 2(1) of Schedule 5 to OTA 1975 by reducing the normal period for making a claim for expenditure from 6 to 4 years.
57.Paragraph 23(3) amends paragraph 2(7)(c) of Schedule 5 to OTA 1975. This means that in cases where HMRC has agreed to a deferral of the responsible person’s return and the earlier of the time that the return is delivered or the latest time for the delivery of the return following the agreed deferral is now more than 2 years (previously 4 years) after the end of the claim period, then the time limit for making the claim is extended to 2 years after the earlier of the deferred delivery date and the date of delivery of the return. The effect is to ensure that there is always a minimum of 2 years in which to check a claim.
58.Paragraph 24(2) restructures paragraph 9(1) of Schedule 5 to OTA 1975 so that HMRC may give a notice of variation within a period labelled “the permitted period”.
59.Paragraph 24(3) repeals paragraphs 9(1A) to (1C) and 9(2A) of Schedule 5 to OTA 1975. These sub-paragraphs formerly set out the old time limits for a notice of variation.
60.Paragraph 24(4) inserts new paragraphs 9(2B) and (2C) into Schedule 5 to OTA 1975. New sub-paragraph (2B) defines “the permitted period” for a notice of variation to be in the normal case the period of 4 years from the date of the original notice under paragraph 3 of Schedule 5 to OTA 1975.
61.New sub-paragraph (2C) extends this period to 6 years if the inaccuracy is careless and to 20 years if the inaccuracy is deliberate
62.Paragraph 24(6) inserts new paragraphs 9(12) and (13) into Schedule 5 to OTA 1975.New sub-paragraph (12) provides that a loss of tax is brought about carelessly by a responsible person or someone acting on their behalf if the person fails to take reasonable care to avoid bringing about that loss. This corresponds with the definition of careless at sub-paragraph 3(1)(a) of Schedule 24 to FA 2007.
63.New sub-paragraph (13) provides that where information is provided to HMRC by the responsible person for an oil field (or someone who acts on their behalf), and that person later discovers that the information was inaccurate but does not take reasonable steps to inform HMRC, the inaccuracy is to be treated as having been brought about carelessly. This is also the case where the inaccuracy is discovered by someone who becomes the responsible person for the oil field, or who acts on their behalf. This corresponds with the definition at sub-paragraph 3(2) of Schedule 24 to FA 2007.
64.Paragraph 25(2) amends paragraph 1 of Schedule 6 to OTA 1975 by reducing the period for making a claim for expenditure from 6 to 4 years.
65.Paragraph 25(3) makes a consequential amendment to the entry relating to paragraph 9 of Schedule 5 to OTA 1975 in the Table in paragraph 2 of Schedule 6 to OTA 1975. This ensures that where this provision referred to the old time limits in Schedule 5 to OTA 1975, it will now refer to the new time limits there.
66.Paragraph 26 makes a consequential amendment to the entry relating to paragraph 9 of Schedule 5 to OTA 1975 in the Table in paragraph 1(3) of Schedule 7 to OTA 1975. This ensures that where this provision referred to the old time limits in Schedule 5 to OTA 1975, it will now refer to the new time limits there.
67.Paragraph 27 provides for Part 2 of FA 2001 (which includes Schedules 5, 8 and 10 to that Act) to be amended. The following paragraphs change time limits that apply to aggregates levy claims and assessments.
68.Paragraph 28 amends section 32(1) of FA 2001. It extends the period for reclaiming overpaid aggregates levy from 3 to 4 years.
69.Paragraph 29(2) amends paragraph 4(1)(b) of Schedule 5 to FA 2001 by extending the normal assessing time limit from 3 to 4 years.
70.Paragraph 29(3) replaces paragraph 4(3) of Schedule 5 to FA 2001 with new sub-paragraphs (3) and (3A).
71.New sub-paragraph (3) extends the assessing time limit to 20 years where the loss of tax is brought about deliberately or where a person has failed to register. The new term “deliberately” is in line with changes made in Schedule 24 to FA 2007 (penalties for incorrect returns) and elsewhere.
72.New sub-paragraph (3A) clarifies that a loss brought about deliberately includes a loss resulting from a deliberate inaccuracy in a document given to HMRC.
73.Paragraph 29(4) amends paragraph 4(4) of Schedule 5 to FA 2001 by extending the period for making an aggregates levy assessment required by reason of some conduct of a deceased person from 3 to 4 years.
74.Paragraph 30 amends paragraph 2(10) of Schedule 8 to FA 2001 by extending the period for making a claim for interest on a repayment from 3 to 4 years.
75.Paragraph 31(2) amends paragraph 4(1) of Schedule 10 to FA 2001. It extends the normal period in which HMRC may make an aggregates levy penalty assessment from 3 to 4 years.
76.Paragraph 31(3) replaces paragraph 4(2) of Schedule 10 to FA 2001 with new sub-paragraphs (2) and (2A).
77.New sub-paragraph (2) extends the assessing time limit to 20 years where the loss of tax is brought about deliberately or where a person has failed to register. The new term “deliberately” is in line with changes made in Schedule 24 to FA 2007 (penalties for incorrect returns) and elsewhere.
78.New sub-paragraph (2A) clarifies that a loss brought about deliberately includes a loss resulting from a deliberate inaccuracy in a document given to HMRC.
79.Paragraph 31(4) amends paragraph 4(3) of Schedule 10 to FA 2001. It extends the period for making an AGL penalty assessment required by reason of some conduct of a deceased person from 3 to 4 years.
80.Paragraph 32 provides for Schedule 6 of FA 2000 to be amended. The following paragraphs change time limits that apply to climate change levy claims and assessments.
81.Paragraph 33 amends paragraph 64(1) of Schedule 6 to FA 2000. It extends the period for reclaiming overpaid climate change levy from 3 to 4 years.
82.Paragraph 34 amends paragraph 66(10) of Schedule 6 to FA 2000 by extending the period for making a claim for interest on a repayment from 3 to 4 years.
83.Paragraph 35(2) amends paragraph 80(1)(b) of Schedule 6 to FA 2000. It extends the normal assessing time limit from 3 to 4 years.
84.Paragraph 35(3) replaces paragraph 80(3) of Schedule 6 to FA 2000 with new sub-paragraphs (3) and (3A).
85.New sub-paragraph (3) extends the assessing time limit to 20 years where the loss of tax is brought about deliberately or where a person has failed to register. The new term “deliberately” is in line with changes made in Schedule 24 to FA 2007 (penalties for incorrect returns) and elsewhere.
86.New sub-paragraph (3A) clarifies that a loss brought about deliberately includes a loss resulting from a deliberate inaccuracy in a document given to HMRC.
87.Paragraph 35(4) amends paragraph 80(4) of Schedule 6 to FA 2000. It extends the period for making a climate change levy assessment required by reason of some conduct of a deceased person from 3 to 4 years.
88.Paragraph 36(2) amends paragraph 108(1) of Schedule 6 to FA 2000. It extends the normal period in which HMRC may raise a climate change levy penalty assessment from 3 to 4 years.
89.Paragraph 36(3) replaces paragraph 108(2) of Schedule 6 to FA 2000 with new sub-paragraphs (2) and (2A).
90.New sub-paragraph (2) extends the assessing time limit to 20 years where the loss of tax is brought about deliberately or where a person has failed to register. The new term “deliberately” is in line with changes made in Schedule 24 to FA 2007 (penalties for incorrect returns) and elsewhere.
91.New sub-paragraph (2A) clarifies that a loss brought about deliberately includes a loss resulting from a deliberate inaccuracy in a document given to HMRC.
92.Paragraph 36(4) amends paragraph 108(3) of Schedule 6 to FA 2000. It extends the period for making a climate change levy penalty assessment required by reason of some conduct of a deceased person from 3 to 4 years.
93.Paragraph 37 provides for Schedule 5 to FA 1996 to be amended. The following paragraphs change time limits that apply to landfill tax claims and assessments.
94.Paragraph 38 amends paragraph 14(4) of Schedule 5 to FA 1996. It extends the period for reclaiming overpaid landfill tax from 3 to 4 years.
95.Paragraph 39 amends paragraph 29(8) of Schedule 5 to FA 1996. It extends the period for making a claim for interest on a repayment under paragraph 29 of Schedule 5 to FA 1996 from 3 to 4 years.
96.Paragraph 40(2) amends paragraph 33(1) of Schedule 5 to FA 1996 by extending the normal assessing time limit from 3 to 4 years. The time limit applies to both assessments to landfill tax and to associated penalties. Time limits run from the “relevant event”, which is defined below.
97.Paragraph 40(3) inserts new paragraph 33(1A) into Schedule 5 to FA 1996. It defines “relevant event” as the end of the accounting period or the date of the event giving rise to a penalty. The use of this term simplifies the drafting without changing meaning.
98.Paragraph 40(5) replaces paragraph 33(4) of Schedule 5 to FA 1996 with new sub-paragraphs (4) and (4A). These provisions apply to both assessments to landfill tax and to associated penalties.
99.New sub-paragraph (4) extends the assessing time limit to 20 years where the loss of tax is brought about deliberately or where a person has failed to register. The new term “deliberately” is in line with changes made in Schedule 24 to FA 2007 (penalties for incorrect returns) and elsewhere.
100.New sub-paragraph (4A) clarifies that a loss brought about deliberately includes a loss resulting from a deliberate inaccuracy in a document given to HMRC.
101.Paragraph 40(6) amends paragraph 33(5) of Schedule 5 to FA 1996. It extends the period for making an assessment to landfill tax or to associated penalties required by reason of some conduct of a deceased person from 3 to 4 years.
102.Paragraph 41 makes a minor clarifying change to sections 36(2) and (3) of TMA. This is to reflect the fact that sections 36(1) and (1A) of TMA (introduced by paragraph 9(2) of Schedule 39 to FA 2008) replaces “for the purpose” with “in a case”.
103.Paragraph 42 omits paragraph 66 of Schedule 39 to FA 2008. This paragraph was a saving so that changes to income tax time limits did not affect PRT. Removing it ensures that the amendments of section 33 of TMA made by Schedule 39 to FA 2008 will have effect for the purposes of PRT.
104.Paragraph 43 makes consequential repeals