Chapter 1 - 4.4 - Discovery Assessments

Question 1

When can a discovery assessment be raised by HMRC?

Answer 1

If HMRC comes into possession of information about a taxpayer’s tax affairs after the normal time limit for compliance checks has passed

Question 2

What are the three time limits for raising a discovery?

Answer 2

• 4 years from the end of the relevant period if there has been no careless or deliberate behaviour
• 6 years from the end of the relevant period for careless behaviour
• 20 years from the end of the relevant period if due to deliberate behaviour

Question 3

For which taxes is the relevant period the tax year?

Answer 3

income tax and capital gains tax

Question 4

For which taxes is the relevant period the accounting period?

Answer 4

corporation tax

Question 5

For which taxes is the relevant period the quarter?

Answer 5

value added tax