Introduction Schedule 33: Annual Tax on Enveloped Dwellings: Returns, Enquiries, Assessments and Appeals Part 5: HMRC Assessments
410.This Part of the Schedule provides for HMRC assessments in certain defined cases.
411.Paragraph 21 deals with HMRC’s powers to make discovery assessments where an amount that should have been assessed under this Part has not been assessed, is less than it should be or relief has been given that is or has become excessive.
412.Paragraph 22 provides for an assessment to recover an excessive repayment of tax including any interest that may have been paid.
413.Paragraph 23 provides in paragraphs 24 to 27 for the references to ‘the taxpayer’ in relation to an assessment under paragraph 21 to be the chargeable person and in relation to an assessment under paragraph 22 to be the person referred to in paragraph 22(1).
414.Paragraph 24 sets out the circumstances where a discovery assessment can be made if the taxpayer has made a return. There are two circumstances; where the return is insufficient because the chargeable person’s behaviour (or a person acting on their behalf) was careless or deliberate, or, that HMRC could not reasonably be expected to be aware that the return insufficient when it was delivered. Furthermore no assessment can be made if the return was made in accordance with generally prevailing practice at the time it was delivered.
415.Paragraph 25 provides the time limit for assessments. The general time limit is 4 years after the end of the relevant chargeable period. This time limit is extended to 6 years where the person making the return has behaved carelessly and to 20 years where the loss of tax was brought about deliberately, or they failed to comply with their obligation to make returns or to make a relevant disclosure of any tax avoidance scheme. In cases of joint ownership where one of the taxpayers is an individual who has died and the assessment is to be made on that individual, the assessments must be made on personal representatives within 4 years of the date of death and can only cover chargeable periods within the 6 years prior to death.
416.Paragraph 26 provides the definition of a loss of tax brought about carelessly or deliberately for the purposes of paragraphs 24 and 25.
417.Paragraph 27 provides procedure for making an assessment on a chargeable person and the contents of the notice of assessment.