Time limit for submitting 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 that 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 that should have been lodged by 31 March 2015. So both returns were late.

HMRC opened enquiries. It was accepted that both capital allowance claims were late under FA 1998 Sch 18 para 82(1)(a) but the issue was whether HMRC’s enquiries had extended those deadlines (para 82(1)(b)).

HMRC said there could not have been an enquiry if there had not been a return and a capital allowances claim had to be made in a return. Paragraph 82(1)(a) specified the time limit for making a claim; the taxpayer’s claims were outside that...