Taxes Management Act 1970

[F1 42 Procedure for making claims etc. U.K.

(1) Where any provision of the Taxes Acts provides for relief to be given, or any other thing to be done, on the making of a claim, this section shall, unless otherwise provided, have effect in relation to the claim.

[F2 (1A) Subject to subsection (3) below, a claim for a relief, an allowance or a repayment of tax shall be for an amount which is quantified at the time when the claim is made.]

(2) Subject to [F3 subsections (3) and (3A)] below, where notice has been given under section 8, 8A, 11 or 12AA of this Act, a claim shall not at any time be made otherwise than by being included in a return under that section if it could, at that or any subsequent time, be made by being so included.

(3) [F4 Subsections (1A) and (2)] above shall not apply in relation to any claim which falls to be taken into account in the making of deductions or repayments of tax under section 203 of the principal Act.

[F5 (3A) Where a person makes a claim requiring relief for a loss incurred or treated as incurred, or a payment made, in one year of assessment (“the later year”) to be given in an earlier year of assessment (“the earlier year”)—

(a) subsection (2) above shall not apply in relation to the claim;

(b) the claim shall be made in relation to the later year;

(c) the claim shall be for an amount equal to the difference between—

(i) the amount in which he has been assessed to tax under section 9 of this Act for the earlier year; and

(ii) the amount in which he would have been so assessed if the claim could have been, and had been, included in a return made under section 8 or 8A of this Act for that year; and

(d) effect shall be given to the claim in relation to the later year, whether by repayment or set-off, or by an addition to the aggregate amount given by section 59B(1)(b) of this Act, or otherwise.

(3B) Where no notice under section 8 or 8A of this Act has been given to the person for the earlier year, subsection (3A)(c) above shall have effect as if—

(a) sub-paragraph (i) referred to the amount in which he would have been assessed to tax under section 9 of this Act for that year if such a notice had been so given; and

(b) sub-paragraph (ii) referred to the amount in which he would have been so assessed if such a notice had been so given and the claim could have been, and had been, included in a return made under section 8 or 8A of this Act for that year.]

(4) [F6 Subject to subsection (4A) below,] a claim made by a company for payment of a tax credit shall be made by being included in a return under section 11 of this Act.

[F7 (4A) Subsection (4) above shall not apply where—

(a) the company is wholly exempt from corporation tax or is only not so exempt in respect of trading income; and

(b) the tax credit is not one in respect of which a payment on account may be claimed by the company under Schedule 19AB to the principal Act.]

(5) The references in [F8 this section] to a claim being included in a return include references to a claim being so included by virtue of an amendment of the return; and the reference in subsection (4) above to a claim for payment includes a reference to a claim resulting in payment.

(6) In the case of a trade, profession or business carried on by persons in partnership, a claim under any of the provisions mentioned in subsection (7) below shall be made—

(a) where subsection (2) above applies, by being included in a return under section 12AA of this Act, and

(b) in any other case, by such one of those persons as may be nominated by them for the purpose.

(7) The provisions are—

(a) [F9 sections 62A, 84], 91B, 101(2), 120(2), 401, 471, 472, 484, 504, 531, 534, 535, 537A, 538, 570, 571(4), 579(4), 723(3), 732(4), 810 of, and paragraphs 2, 6 and 11 of Schedule 5 to, the principal Act;

(b) section 43(5) of the Finance Act 1989;

(c) sections 1, 11, 17, 22, 23, 24, 25, 30, 31, 33, [F10 33A,] 37, 48, 49, 53, 55, 68(5), 68(9), 77, 78, 124A, 129(2), 140(3), 141 and 158 of the Capital Allowances Act 1990; and

(d) sections 41 and 42 of the Finance (No. 2) Act 1992.

(8) A claim may be made on behalf of an incapacitated person by his trustee, guardian, tutor or curator; and a person who under Part VIII of this Act has been charged with tax on the profits of another person may make any such claim for relief by discharge or repayment of that tax.

(9) Where a claim has been made (whether by being included in a return under section 8, 8A, 11 or 12AA of this Act or otherwise) and the claimant subsequently discovers that an error or mistake has been made in the claim, the claimant may make a supplementary claim within the time allowed for making the original claim.

(10) This section [F11 (except subsection (1A) above)] shall apply in relation to any elections and notices as it applies in relation to claims.

(11) Schedule 1A to this Act shall apply as respects any claim, election or notice which—

(a) is made otherwise than by being included in a return under section 8, 8A, 11 or 12AA of this Act, F12 ...

F12 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12) Schedule 2 to this Act shall have effect as respects the Commissioners to whom an appeal lies under Schedule 1A to this Act.

(13) In this section “profits”—

(a) in relation to income tax, means income,

(b) in relation to capital gains tax, means chargeable gains, and

(c) in relation to corporation tax, means profits as computed for the purposes of that tax.]

Textual Amendments

F1 S. 42 substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 13; S.I. 1998/3173, art. 2

F2 S. 42(1A) inserted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 107(1)

F3 Words in s. 42(2) substituted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 107(2)

F4 Words in s. 42(3) substituted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 107(3)

F5 S. 42(3A)(3B) inserted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 107(4)

F6 Words in s. 42(4) inserted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 107(5)

F7 S. 42(4A) inserted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 107(6)

F8 Words in s. 42(5) substituted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 107(7)

F9 Words in s. 42(7)(a) substituted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 107(8)

F10 Word in s. 42(7)(c) inserted (with effect in accordance with s. 98 of the amending Act) by Finance Act 1995 (c. 4), s. 97(2)

F11 Words in s. 42(10) inserted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 107(9)

F12 S. 42(11)(b) and preceding word repealed (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 107(10), Sch. 29 Pt. 8(14)

Modifications etc. (not altering text)

C1 S. 42 restricted (3.5.1994) by Finance Act 1994 (c. 9), s. 118(7)

C2 S. 42 excluded by Capital Allowances Act 1990 (c. 1), s. 140(3) (as substituted (with effect in accordance with ss. 211(2), 218 of the amending Act) by Finance Act 1994 (c. 9), s. 211(1) (with s. 214(7), Sch. 20))

C3 S. 42 excluded (16.8.1995) by The Venture Capital Trust Regulations 1995 (S.I. 1995/1979), regs. 1, 19(1)