TCTM10320 | Discovery decisions - Reasonable grounds

When the time limits for a s19 prevent us from opening an enquiry, or there has already been an enquiry and we receive new information, S20(4) allows us to revise the award where we have reasonable grounds to believe it is incorrect due to fraud or neglect by the claimant or someone acting on their behalf. The revision must be made within five years beginning with the end of the tax year to which the conclusive decision relates.

Example

In a 2009/2010 enquiry the claimant admitted their partner moved in during 2008 but they cannot remember when. As long as there is neglect, we can ask them either to find out the date or let us see evidence from which we can work it out.

S20 (4) Where the Board have reasonable grounds for believing that-

(a) a conclusive decision relating to the entitlement of a person, or the joint entitlement of persons, to a tax credit for a tax year is not correct, and

(b) that is attributable to fraud or neglect on the part of the person, or of either of the persons, or on the part of any person acting for him, or either of them, the Board may decide to revise that decision.

S20 (5) no decision may be made under subsection (4)-

(a) unless it is too late to enquire into the entitlement, or joint entitlement, under section 19, or

(b) after the period of five years beginning with the end of the tax year to which the conclusive decision relates.