Not out of time

Enquiries into capital allowances claims

The taxpayer ran public houses and bars. Its tax return for the year to 31 March 2012 received by HMRC in February 2015 included a claim for capital allowances which should have been lodged by 31 March 2014. The return for the period to 31 March 2013 received by HMRC in November 2015 included a claim for capital allowances which should have been lodged by 31 March 2015.

HMRC opened enquiries in relation to capital allowances under FA 1998 Sch 18 para 24(1). It was accepted that both capital allowance claims were late (Sch 18 para 82(1)(a)) but the issue under appeal was whether HMRC’s enquiries had extended it (para 82(1)(b)).

HMRC said the key point was whether a claim was valid by reference to the time limit applicable when it was made. Only one time limit was relevant to...