CH53200 | Assessing Time Limits: Extended time limits: Reliance on another person

The 6 year and 20 year extended time limits apply whether the loss of tax was brought about carelessly, see CH53400, or deliberately, see CH53700, by the person to be assessed or by another person acting on behalf of that person.

The extended 12 year time limit for offshore matters and offshore transfers only applies to 2013-14 and 2014-15 if the behaviour was careless.

For all subsequent years the 12 year time limit apples where either the person to be assessed or another person acting on behalf of that person took reasonable care or where their behaviour was careless. If the tax loss was brought about deliberately, the 20-year time limit will apply.

The term ‘another person acting on behalf of that person’ has a very wide meaning. It is not limited to, say, a ‘tax accountant’ or other professional representative or adviser. It may also include, but again is not limited to

• an employee

• an officer of a company

• a fellow group company

• a member of a VAT group

• a settlor or beneficiary.

Where HMRC might intend to allege that accountancy is carelessly or deliberately wrong, the case should be submitted to a compliance accountant before a decision letter is issued, see ARTG2190.