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Time limits for assessments, claims etc |
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1 | Schedule 7 to FA 1994 (insurance premium tax) is amended as follows. |
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2 | In paragraph 8(4) (recovery of overpaid tax), for “three years” substitute “4 |
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3 | In paragraph 22(9) (interest payable by Commissioners), for “three years” |
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4 (1) | Paragraph 26 (assessments: time limits) is amended as follows. |
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(2) | In sub-paragraph (1), for the words from “three years after” (in the first |
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place) to the end substitute “4 years after the relevant event”. |
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(3) | After that sub-paragraph insert— |
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“(1A) | In this paragraph “the relevant event”, in relation to an |
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(a) | the end of the accounting period concerned, or |
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(b) | in the case of an assessment under paragraph 25 of an |
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amount due by way of a penalty other than a penalty |
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referred to in paragraph 25(2), the event giving rise to the |
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(4) | In sub-paragraph (3), for “sub-paragraph (1)” substitute “sub-paragraph |
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(5) | For sub-paragraph (4) substitute— |
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“(4) | An assessment of an amount due from a person in a case involving |
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(a) | brought about deliberately by the person (or by another |
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person acting on that person’s behalf), or |
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(b) | attributable to a failure by the person to comply with an |
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obligation under section 53(1) or (2) or 53AA(1) or (3), |
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| may be made at any time not more than 20 years after the relevant |
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(5) | In sub-paragraph (4)(a) the reference to a loss brought about |
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deliberately by the person includes a loss brought about as a result |
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of a deliberate inaccuracy in a document given to Her Majesty’s |
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Revenue and Customs by or on behalf of that person.” |
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5 | IHTA 1984 is amended as follows. |
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6 | In section 131 (transfers within 7 years before death: the relief), after |
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“(2ZA) | A claim under subsection (2)(b) must be made not more than 4 years |
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after the transferor’s death.” |
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7 | In section 146(2)(a) (Inheritance (Provision for Family and Dependants) Act |
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1975), after “claim for the purpose” insert “not more than 4 years after the |
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date on which the order is made”. |
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8 | In section 150 (voidable transfers), insert at the end— |
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“(3) | A claim under this section must be made not more than 4 years after |
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the claimant knew, or ought reasonably to have known, that the |
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relevant transfer has been set aside.” |
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9 | In section 179 (sale of shares etc from deceased’s estate: the relief), after |
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“(2A) | A claim under this Chapter must be made not more than 4 years after |
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the end of the period mentioned in subsection (1)(a).” |
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10 | In section 191 (sale of land from deceased’s estate: the relief), after |
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“(1A) | A claim under this Chapter must be made not more than 4 years after |
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the end of the period mentioned in subsection (1)(a).” |
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11 (1) | Section 240 (underpayments) is amended as follows. |
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(2) | In subsection (2), for “six years” substitute “4 years”. |
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(3) | For subsection (3) substitute— |
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“(3) | Subsection (2) has effect subject to subsections (4) and (5). |
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(4) | Proceedings in a case involving a loss of tax brought about carelessly |
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by a person liable for the tax (or a person acting on behalf of such a |
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person) may be brought at any time not more than 6 years after the |
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later of the dates in subsection (2)(a) and (b). |
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(5) | Proceedings in a case involving a loss of tax brought about |
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deliberately by a person liable for the tax (or a person acting on |
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behalf of such a person) may be brought at any time not more than |
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20 years after the later of those dates. |
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(6) | Subsection (7) applies to any case not falling within subsection (2) |
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where too little tax has been paid in respect of a chargeable transfer, |
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provided that the case does not involve a loss of tax brought about |
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deliberately by a person liable for the tax (or a person acting on |
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behalf of such a person). |
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(7) | Where this subsection applies— |
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(a) | no proceedings are to be brought for the recovery of the tax |
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after the end of the period of 20 years beginning with the date |
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on which the chargeable transfer was made, and |
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(b) | at the end of that period any liability for the tax and any |
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Inland Revenue charge for that tax is extinguished. |
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(8) | In relation to cases of tax chargeable under Chapter 3 of Part 3 of this |
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Act (apart from section 79), the references in subsections (4), (5) and |
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(6) to a person liable for the tax are to be treated as including |
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references to a person who is the settlor in relation to the settlement.” |
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12 | After that section insert— |
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“240A | Underpayments: supplementary |
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(1) | This section applies for the purposes of section 240. |
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(2) | A loss of tax is brought about carelessly by a person if the person fails |
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to take reasonable care to avoid bringing about that loss. |
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(a) | information is provided to Her Majesty’s Revenue and |
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(b) | the person who provided the information, or the person on |
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whose behalf the information was provided, discovers some |
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time later that the information was inaccurate, and |
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(c) | that person fails to take reasonable steps to inform Her |
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Majesty’s Revenue and Customs, |
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| any loss of tax brought about by the inaccuracy is to be treated as |
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having been brought about carelessly by that person. |
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(4) | References to a loss of tax brought about deliberately by a person |
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include a loss of tax brought about as a result of a deliberate |
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inaccuracy in a document given to Her Majesty’s Revenue and |
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Customs by or on behalf of that person.” |
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13 | In section 241(1) (overpayments), for “six years” substitute “4 years”. |
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14 | Part 4 of FA 2003 (stamp duty land tax) is amended as follows. |
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15 (1) | Schedule 10 (returns, enquiries, assessments and appeals) is amended as |
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(2) | In paragraph 25(3) (determination of tax chargeable if no return delivered), |
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for “six years” substitute “4 years”. |
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(3) | In paragraph 27(2)(a) (determination superseded by actual self-assessment), |
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for “six years” substitute “4 years”. |
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(4) | Paragraph 31 (time limit for assessment) is amended in accordance with sub- |
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(5) | In sub-paragraph (1), for “six years” substitute “4 years”. |
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(6) | For sub-paragraph (2) substitute— |
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“(2) | An assessment of a person to tax in a case involving a loss of tax |
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brought about carelessly by the purchaser or a related person may |
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be made at any time not more than 6 years after the effective date |
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of the transaction to which it relates (subject to sub-paragraph |
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(2A) | An assessment of a person to tax in a case involving a loss of tax— |
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(a) | brought about deliberately by the purchaser or a related |
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(b) | attributable to a failure by the person to comply with an |
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obligation under section 76(1) or paragraph 3(3)(a), 4(3)(a) |
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or 8(3)(a) of Schedule 17A, or |
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(c) | attributable to arrangements in respect of which the person |
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has failed to comply with an obligation under section 309, |
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310 or 313 of the Finance Act 2004 (obligation of parties to |
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tax avoidance schemes to provide information to Her |
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Majesty’s Revenue and Customs), |
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| may be made at any time not more than 20 years after the effective |
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date of the transaction to which it relates.” |
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(7) | In sub-paragraph (4)(a), for “three years” substitute “4 years”. |
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(8) | After sub-paragraph (5) insert— |
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“(6) | In this paragraph “related person”, in relation to a purchaser, |
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(a) | a person acting on behalf of the purchaser, or |
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(b) | a person who was a partner of the purchaser at the relevant |
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(9) | After paragraph 31 insert— |
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“Losses brought about carelessly or deliberately |
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31A (1) | This paragraph applies for the purposes of paragraph 31. |
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(2) | A loss of tax is brought about carelessly by a person if the person |
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fails to take reasonable care to avoid bringing about that loss. |
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(a) | information is provided to Her Majesty’s Revenue and |
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(b) | the person who provided the information, or the person on |
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whose behalf the information was provided, discovers |
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some time later that the information was inaccurate, and |
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(c) | that person fails to take reasonable steps to inform Her |
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Majesty’s Revenue and Customs, |
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| any loss of tax brought about by the inaccuracy is to be treated as |
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having been brought about carelessly by that person. |
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(4) | References to a loss of tax brought about deliberately by a person |
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include a loss of tax brought about as a result of a deliberate |
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inaccuracy in a document given to Her Majesty’s Revenue and |
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Customs by or on behalf of that person.” |
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(10) | In paragraph 34(2) (relief in case of mistake in return), for “six years” |
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16 (1) | Paragraph 8 of Schedule 14 (time limit for determination of penalties) is |
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(2) | In sub-paragraph (2)— |
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(a) | for “six years” substitute “4 years”, and |
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(b) | after “began to be incurred” insert “(“the relevant date”)”. |
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(3) | In sub-paragraph (3), insert at the end “(subject to any of the following |
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provisions of this paragraph allowing a longer period)”. |
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(4) | After sub-paragraph (4) insert— |
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“(4A) | Where a person is liable to a penalty in a case involving a loss of |
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tax brought about carelessly by the person (or by another person |
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acting on that person’s behalf), the penalty may be determined, or |
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the proceedings may be brought, at any time not more than 6 years |
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after the relevant date (subject to sub-paragraphs (4B) and (5)). |
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(4B) | Where a person is liable to a penalty in a case involving a loss of |
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(a) | brought about deliberately by the person (or by another |
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person acting on that person’s behalf), |
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(b) | attributable to a failure by the person to comply with an |
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obligation under section 76(1) or paragraph 3(3)(a), 4(3)(a) |
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or 8(3)(a) of Schedule 17A, or |
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(c) | attributable to arrangements in respect of which the person |
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has failed to comply with an obligation under section 309, |
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310 or 313 of the Finance Act 2004 (obligation of parties to |
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tax avoidance schemes to provide information to Her |
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Majesty’s Revenue and Customs), |
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| the penalty may be determined, or the proceedings may be |
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brought, at any time not more than 20 years after the relevant date. |
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(4C) | Paragraph 31A of Schedule 10 (losses brought about carelessly or |
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deliberately) applies for the purpose of this paragraph.” |
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17 | OTA 1975 is amended as follows. |
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18 (1) | The Table in paragraph 1(1) of Schedule 2 (applying provisions of TMA 1970 |
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in relation to management and collection of petroleum revenue tax) is |
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(2) | In the entry relating to section 33 of TMA 1970, in the second column, for the |
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entry relating to subsection (1) substitute “In subsection (1), for “year of |
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assessment” substitute “chargeable period”.” |
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(3) | Omit the entries relating to sections 34 and 36 of TMA 1970. |
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19 | In paragraph 10 of Schedule 2 (assessments to tax and determinations of loss |
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etc), after sub-paragraph (1) insert— |
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“(1A) | An assessment under sub-paragraph (1) may be made at any time |
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not more than 4 years after the end of the chargeable period to |
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which it relates (subject to paragraphs 12A and 12B).” |
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20 (1) | Paragraph 12 of Schedule 2 (further assessments and determinations) is |
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(2) | After sub-paragraph (1) insert— |
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“(1A) | An assessment (or an amendment of an assessment) under sub- |
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paragraph (1) may be made at any time not more than 4 years after |
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the end of the chargeable period to which the assessment relates |
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(subject to sub-paragraph (1B) and paragraphs 12A and 12B). |
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(1B) | The time limits in sub-paragraph (1A) and paragraphs 12A and |
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12B do not apply to an amendment of an assessment where the |
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amendment is made in consequence (directly or indirectly) of— |
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(a) | the granting of relief under section 7(2) or (3) to any |
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participator for allowable losses accruing in any |
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(b) | a notice of variation served under paragraph 9 of Schedule |
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5 on any responsible person in respect of a claim for any |
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(3) | In sub-paragraph (2)— |
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(a) | omit “(notwithstanding anything in section 34 of the Taxes |
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Management Act 1970 (ordinary time limit for assessment))”, |
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(b) | for “six years” substitute “4 years”, and |
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(c) | insert at the end “(subject to paragraphs 12A and 12B)”. |
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21 | In paragraph 12A(1) of Schedule 2 (time limit for assessment following |
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extension of time for delivery of return), for “five years” substitute “4 years”. |
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22 | In that Schedule, after paragraph 12A insert— |
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“12B (1) | In a case involving a relevant situation brought about carelessly by |
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a participator (or a person acting on behalf of a participator), an |
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assessment (or an amendment of an assessment) under this |
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Schedule on the participator may be made at any time not more |
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than 6 years after the end of the relevant chargeable period |
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(subject to sub-paragraph (2)). |
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(2) | In a case involving a relevant situation brought about deliberately |
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by a participator (or a person acting on behalf of a participator), an |
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assessment (or an amendment of an assessment) on the |
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participator may be made at any time not more than 20 years after |
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the end of the relevant chargeable period. |
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(3) | “Relevant situation” means a situation in which— |
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(a) | there is a loss of tax, |
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(b) | the assessable profit charged to tax by or stated in an |
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assessment for a chargeable period ought to be or to have |
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(c) | the allowable loss stated in an assessment or a |
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determination of loss for a chargeable period ought to be or |
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(d) | an assessment to tax should have been made for a |
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chargeable period but was not made. |
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(4) | “Relevant chargeable period” means— |
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(a) | in the case of a further assessment under paragraph 12(2), |
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the chargeable period in which the excessive allowable loss |
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(b) | in any other case, the chargeable period to which the |
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(5) | Where the participator carried on a trade or business with one or |
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more other persons at any time in the chargeable period for which |
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the assessment under sub-paragraph (1) or (2) is made, an |
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assessment to tax in respect of the profits of that trade or business |
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may also be made on any of the participator’s partners. |
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(6) | In determining the amount of the tax to be charged on a person for |
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a chargeable period in an assessment in a case mentioned in sub- |
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paragraph (1) or (2) (including an assessment under sub- |
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paragraph (5)), effect must be given to any relief or allowance to |
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which that person would have been entitled for that period if a |
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valid claim or application had been made. |
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(7) | Sub-paragraph (6) only applies if the person on whom the |
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assessment is made so requires. |
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(8) | Subsections (5) to (7) of section 118 of the Taxes Management Act |
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1970 (losses and situations brought about carelessly or |
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deliberately) apply for the purposes of this paragraph as they |
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apply for the purposes of that Act. |
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(9) | In subsection (6)(b) of that section (as it applies for the purposes of |
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this paragraph), the reference to the person who provides the |
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information has effect as if it included any person who becomes |
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the responsible person for the oil field after the information is |
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23 (1) | Paragraph 2 of Schedule 5 (allowance of expenditure other than abortive |
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exploration expenditure: claim period) is amended as follows. |
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(2) | In sub-paragraph (1), for “six years” substitute “4 years”. |
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(3) | In sub-paragraph (7)— |
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(a) | in paragraph (c), for “four years” substitute “2 years”, and |
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(b) | in the words after that paragraph, for “six years” substitute “4 years”. |
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24 (1) | Paragraph 9 of Schedule 5 (allowance of expenditure other than abortive |
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exploration expenditure: notice of variation) is amended as follows. |
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(2) | In sub-paragraph (1)— |
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(a) | omit the words from “, within” to “field,”, |
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(b) | for “in the notice” substitute “in a notice of a decision under |
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paragraph 3 above given to the responsible person for an oil field”, |
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(c) | for “that period” substitute “the permitted period”. |
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(3) | Omit sub-paragraphs (1A) to (1C) and (2A). |
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(4) | After sub-paragraph (2A) insert— |
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“(2B) | In this paragraph “permitted period” means the period of 4 years |
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beginning with the date on which the notice of the decision under |
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paragraph 3 was given (but see sub-paragraph (2C)). |
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(2C) | Where the relevant amount was overstated in the notice of |
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decision as a result of an inaccuracy in a statement or declaration |
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made by the responsible person (or a person acting on behalf of the |
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responsible person) in connection with the claim— |
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(a) | if the inaccuracy was careless, the permitted period is |
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