Upper Tribunal Tax and Chancery Chamber

UT (Tax & Chancery) UT-2024-000113 - [2025] UKUT 00165 (TCC)

Fecha: 08-Abr-2025

The Law

The Law

Legislation

89.

S.42(11) TMA provides that “Schedule 1A to this Act shall apply as respects any claim or election which—(a) is made otherwise than by being included in a return under section 8, 8A or 12AA of this Act…”.

90.

The starting point for these purposes is s.8 TMA which sets out the circumstances in which HMRC may require an individual to make a return for the purposes of income tax and capital gains tax and what that return must include (s.8(1AA)). For the relevant periods, it was in the following form:

8.— Personal return.

(1)

For the purpose of establishing the amounts in which a person is chargeable to income tax and capital gains tax for a year of assessment, and the amount payable by him by way of income tax for that year, he may be required by a notice given to him by an officer of the Board—

(a)

to make and deliver to the officer, on or before the day mentioned in subsection (1A) below, a return containing such information as may reasonably be required in pursuance of the notice, and

(b)

to deliver with the return such accounts, statements and documents, relating to information contained in the return, as may reasonably be so required.

(1A) The day referred to in subsection (1) above is—

(a)

the 31st January next following the year of assessment, or

(b)

where the notice under this section is given after the 31st October next following the year, the last day of the period of three months beginning with the day on which the notice is given.

(1AA) For the purposes of subsection (1) above—

(a)

the amounts in which a person is chargeable to income tax and capital gains tax are net amounts, that is to say, amounts which take into account any relief or allowance a claim for which is included in the return; and

(b)

the amount payable by a person by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source and any tax credits to which section 397(1) of ITTOIA 2005 applies.

...

91.

S.9A TMA provided, so far as relevant, for enquiries to be opened into s.8 returns, by an officer of HMRC giving a notice of enquiry:

9A Notice of enquiry

(1)

An officer of the Board may enquire into a return under section 8 or 8A of this Act if he gives notice of his intention to do so (“notice of enquiry”)–

(a)

to the person whose return it is (“the taxpayer”),

(b)

within the time allowed.

(2)

The time allowed is–

(a)

if the return was delivered on or before the filing date, up to the end of the period of twelve months after the filing date;

(b)

if the return was delivered after the filing date, up to and including the quarter day next following the first anniversary of the day on which the return was delivered;

(c)

if the return is amended under section 9ZA of this Act, up to and including the quarter day next following the first anniversary of the day on which the amendment was made.

For this purpose the quarter days are 31st January, 30th April, 31st July and 31st October.

…

(6)

In this section “the filing date” means the day mentioned in section 8(1A) or, as the case may be, section 8A(1A) of this Act.”

92.

As provided by s.42(11), Schedule 1A TMA contains provisions governing the making of claims that are not included in a return, enquiries into those claims and the closure of those enquiries. Paragraph 5, Schedule 1A contains HMRC’s power to enquire into such claims. It provides, so far as relevant, for the opening of an enquiry by the giving of a notice within the specified period:

“5.—