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Making Entrepreneurs' Relief claims outside the time limit

Making Entrepreneurs' Relief claims outside the...

Dear all

I have a client who, although he has always been within self-assessment, has not submitted a tax return since 2007/08.

I am now preparing his returns for the tax years 2008/09 - 2011/12.

In 2008/09, client made a £1,000,000+ gain on the associated disposal of a business asset (land) shortly before the liquidation of his trading company. The gain would ordinarily have qualified for ER and therefore been reduced by 4/9ths but we are unfortunately now outside the time limit for ER claims, which is one year from the filing date of the return for the year in which the gain is made.

My feeling is that the client is stuffed and has just lost £80k but if anyone knows differently or has found HMRC to be lenient when it comes to time limits for claims of this nature, I would be overjoyed to hear their thoughts!




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29th Jun 2012 13:17

ER time limit

if an assessment is made under TMA 1970,s 36 to make good a loss of tax, the time limit for the ER claim may be extended (CG63970).


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29th Jun 2012 14:15


Interesting. I take it you refer to the following...

36(3)  If the person on whom the assessment is made so requires, in determining the amount of the tax to be charged for any chargeable period in any assessment made in a case mentioned in subsection (1) or (1A) above, effect shall be given to any relief or allowance to which he would have been entitled for that chargeable period on a claim or application made within the time allowed by the Taxes Acts.

If I follow your argument correctly, if HMRC were to assess client under s.36 for 2008/09, he would then get a second bite of the cherry for the ER claim. AFAIK they haven't yet done so but I wonder if there is any way I could tempt them into it!?

edit: Thanks very much. I think this might work very nicely.

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