Taxpayer strike-out

The taxpayer a UK resident did not file self assessment tax returns for the years 2005/06 to 2009/10 until January 2012 by which time HMRC had issued 14 statements of account including penalties for non-submission of the documents.

The 2005/06 and 2006/07 returns showed tax repayments totalling £49 000 which the taxpayer sought to be set against liabilities for subsequent years. TMA 1970 Sch 1AB’s four-year limit for tax reclaims meant the taxpayer’s deadlines were 5 April 2010 and 5 April 2011.

TMA 1970 Sch 1AB para 3A(1) allows the time limit to be extended if a determination of liability was made under TMA 1970 s 28C and the taxpayer believes the tax is not due. The determination refers to those made by the Revenue under TMA 1970 s 8 or s 8A.

The tax department argued the appeal should be...