Finance Act 1996 (c. 8)

(The document as of February, 2008)

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Backward spreading of certain payments

6 (1) This paragraph applies where a person who has received a payment to which any of the following sections applies, namely--

(a) section 534 of the principal Act (relief for copyright payments etc.);

(b) section 537A of that Act (relief for payments in respect of designs); and

makes a claim under subsection (1) of that section requiring that effect be given to the following provisions of that section in connection with that payment.

(2) The claim shall relate to the year of assessment in which the payment in question is receivable ("the payment year"); and for the purposes of this sub-paragraph a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for the relevant section, be included.

(3) Subject to sub-paragraph (4) below, in so far as the claim relates to the profits or gains of a year of assessment earlier than the payment year ("the earlier year"), the claim shall be for an amount equal to the difference between--

(a) the amount in which the person is chargeable to tax for the earlier year ("amount A"); and

(b) the amount in which he would be so chargeable on the assumption that effect could be, and were, given to the claim or amendment in relation to that year ("amount B").

(4) Where effect has been given to one or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the associated claim or claims in relation to the earlier year.

(5) In so far as the claim relates to the profits or gains of the earlier year, effect shall be given to the claim in relation to the payment year by an increase in the amount of tax payable.

Section 132.

SCHEDULE 18 Overdue tax and excessive payments by the Board

The Taxes Management Act 1970

1 In section 55 of the [1970 c. 9.] Taxes Management Act 1970 (recovery of tax not postponed) in subsection (1) (which specifies the appeals to which section 55 applies) for paragraph (b) (assessments under section 29) there shall be substituted--

" (b) an assessment to tax made otherwise than under section 9 of this Act, " .

2 (1) Section 59A of the Taxes Management Act 1970 (payments on account of income tax) shall be amended in accordance with the following provisions of this paragraph.

(2) In subsection (2) (requirement to make payments on account and determination, subject to subsections (4) and (4A), of the amount of such payments) for "(4) and (4A)" there shall be substituted "(4) to (4B)".

(3) In subsection (4A) (determination, subject to subsections (3) and (4), of amount of payments on account in the case of late or amended assessments), after "subsections (3) and (4) above" there shall be inserted "and subsection (4B) below".

(4) After subsection (4A) there shall be inserted--

" (4B) If as regards the year immediately preceding the year of assessment the taxpayer is assessed to income tax under section 29 of this Act in any amount, then, subject to subsections (3) and (4) above and to any subsequent application of this subsection, the amount of each payment on account shall be, and shall be deemed always to have been, the total of--

(a) the amount which, immediately before the making of the assessment under section 29, is the amount of that payment, and

(b) an amount equal to 50 per cent. of the amount in which he is assessed under that assessment;

and if that assessment is varied, the amount in which he is assessed under it shall be taken for the purposes of paragraph (b) above to be the amount of the assessment as varied. "

(5) In subsection (5) (adjustments to be made where subsection (4A) applies) after "subsection (4A)" there shall be inserted "or (4B)".

3 (1) Section 86 of the [1970 c. 9.] Taxes Management Act 1970 (interest on overdue income tax and capital gains tax) shall be amended in accordance with the following provisions of this paragraph.

(2) In subsection (4) (subsection (5) to apply with respect to interest in cases where taxpayer makes a claim under section 59A(3) or (4) but an amount becomes payable by him under certain provisions of section 59B) in paragraph (b), after "payable by him" there shall be inserted "(i)" and at the end of that paragraph there shall be added " or

(ii) in accordance with section 59B(6) of this Act in respect of income tax assessed under section 29 of this Act. "

(3) In subsection (6) (determination of what amount is payable in accordance with section 59B(3), (4) or (5)) after "section 59B(3), (4) or (5) of this Act" there shall be inserted "or, in respect of income tax assessed under section 29 of this Act, in accordance with section 59B(6) of this Act".

4 (1) Section 88 of the Taxes Management Act 1970 (which relates to interest on tax recovered to make good loss due to the taxpayer's fault and which is superseded by section 86 of that Act, as substituted by the [1995 c. 4.] Finance Act 1995) shall cease to have effect.

(2) In consequence of the repeal of section 88 of the [1970 c. 9.] Taxes Management Act 1970--

(a) section 88A of that Act (determinations under section 88) shall cease to have effect;

(b) in section 91 of that Act (effect of interest on reliefs) in subsection (1)--

(i) the words "or section 88" shall cease to have effect; and

(ii) for the words "those provisions", in each place where they occur, there shall be substituted "that section"; and

The Taxes Act 1988

5 In section 307 of the Taxes Act 1988 (enterprise investment scheme and business expansion scheme: withdrawal of relief) in subsection (6) (application of section 86 of the Taxes Management Act 1970 to assessments made by virtue of section 307 as if the reckonable date were as specified in that subsection) for "the reckonable date" there shall be substituted "the relevant date".

6 (1) Section 369 of the Taxes Act 1988 (MIRAS) shall be amended in accordance with the following provisions of this paragraph.

(2) In subsection (7)--

(a) for paragraph (a) (which applies section 29(3)(c) of the Taxes Management Act 1970) there shall be substituted--

" (a) section 29(1)(c) (excessive relief) as it has effect apart from section 29(2) to (10) of that Act; " ;

(b) in paragraph (b) (which applies section 30 of the Taxes Management Act 1970) after the words in parentheses there shall be inserted "apart from subsection (1B)";

(c) in paragraph (c) (which applies section 88 of the Taxes Management Act 1970) for "section 88" there shall be substituted "section 86"; and

(d) in the words following paragraph (d) after "as if it had been repaid" there shall be inserted "as respects a chargeable period".

(3) After subsection (7) there shall be inserted--

" (8) In the application of section 86 of the Management Act by virtue of subsection (7) above in relation to sums due and payable by virtue of an assessment made for the whole or part of a year of assessment ("the relevant year of assessment") under section 29(1)(c) or 30 of that Act, as applied by that subsection, the relevant date--

(a) is 1st January in the relevant year of assessment in a case where the person falling within subsection (6) above has made a relevant interim claim; and

(b) in any other case, is the later of the following dates, that is to say--

(i) 1st January in the relevant year of assessment; or

(ii) the date of the making of the payment by the Board which gives rise to the assessment.

(9) In this section--

"financial year", in relation to any person, means a financial year of that person for the purposes of the relevant regulations;
"interim claim" means an interim claim within the meaning of the relevant regulations;
"relevant interim claim" means, in relation to an assessment made for a period coterminous with, or falling wholly within, a person's financial year, an interim claim made for a period falling wholly or partly within that financial year; and
"the relevant regulations" means regulations made under section 378(3) for the purposes of subsection (6) above. "

7 In section 374A of the Taxes Act 1988 (interest which never has been relevant loan interest etc) in subsection (4) (which provides for the application of the [1970 c. 9.] Taxes Management Act 1970 to an assessment under subsection (3) of that section as if it were an assessment to income tax and as if certain other things were the case) the words from "and as if" onwards shall be omitted.

8 In section 375 of the Taxes Act 1988 (interest ceasing to be relevant loan interest etc) in subsection (4) (which provides for the application of the Taxes Management Act 1970 to an assessment under subsection (3) of that section as it applies by virtue of section 374A(4) to an assessment under section 374A(3)) for "as it applies, by virtue of subsection (4) of section 374A, to an assessment under subsection (3) of that section" there shall be substituted "as if it were an assessment to income tax for the year of assessment in which the deduction was made".

9 In section 412(4) of the Taxes Act 1988 (group relief: power to assess under section 412(3) is without prejudice to the making of assessments under section 29(3)(c) of the Taxes Management Act 1970) for "section 29(3)(c)" there shall be substituted "section 29(1)(c)".

10 In section 588 of the Taxes Act 1988 (training courses: employee and employer may be assessed under section 29(3) of the Taxes Management Act 1970 if employee fails to comply with conditions for relief) for "section 29(3)" there shall be substituted "section 29(1)".

11 (1) Schedule 14 to the Taxes Act 1988 (life assurance premium relief: provisions ancillary to section 266) shall be amended in accordance with the following provisions of this paragraph.

(2) In paragraph 6(2) (which provides for the application of the [1970 c. 9.] Taxes Management Act 1970 to an assessment under paragraph 6 of that Schedule as if it were an assessment to tax for the year of assessment in which the relief was given and as if certain other things were the case) the words from "and as if" onwards shall be omitted.

(3) In paragraph 7(3) (which applies specified provisions of the Taxes Management Act 1970 to the payment of a sum claimed under section 266(5)(b))--

(a) for paragraph (a) (which applies section 29(3)(c) of the Taxes Management Act 1970) there shall be substituted--

" (a) section 29(1)(c) (excessive relief) as it has effect apart from section 29(2) to (10) of that Act; " ;

(b) in paragraph (b) (which applies section 30 of the Taxes Management Act 1970) after the words in parentheses there shall be inserted "apart from subsection (1B)";

(c) in paragraph (c) (which applies section 88 of the Taxes Management Act 1970) for "section 88" there shall be substituted "section 86"; and

(d) for the words following paragraph (d) there shall be substituted--

" shall apply in relation to an amount which is paid to any person by the Board as an amount recoverable by virtue of section 266(5)(b) but to which that person is not entitled as if it were income tax which ought not to have been repaid and, where that amount was claimed by that person, as if it had been repaid as respects a chargeable period as a relief which was not due. "

(4) After paragraph 7(3) there shall be added--

" (4) In the application of section 86 of the Management Act by virtue of sub-paragraph (3) above in relation to sums due and payable by virtue of an assessment made for the whole or part of a year of assessment ("the relevant year of assessment") under section 29(1)(c) or 30 of that Act, as applied by that sub-paragraph, the relevant date--

(a) is 1st January in the relevant year of assessment in a case where the person falling within section 266(5)(b) has made a relevant interim claim; and

(b) in any other case, is the later of the following dates, that is to say--

(i) 1st January in the relevant year of assessment; or

(ii) the date of the making of the payment by the Board which gives rise to the assessment.

(5) In this paragraph--

"financial year", in relation to any person, means a financial year of that person for the purposes of the relevant regulations;
"interim claim" means an interim claim within the meaning of the relevant regulations;
"relevant interim claim" means, in relation to an assessment made for a period coterminous with, or falling wholly within, a person's financial year, an interim claim made for a period falling wholly or partly within that financial year;
"the relevant regulations" means regulations made under sub-paragraph (1) above. "

The Finance Act 1989

12 (1) Section 57 of the [1989 c. 26.] Finance Act 1989 (medical insurance: supplementary) shall be amended in accordance with the following provisions of this paragraph.

(2) In subsection (3) (which applies specified provisions of the [1970 c. 9.] Taxes Management Act 1970 to the payment of an amount claimed under section 54(6)(b))--

(a) for paragraph (a) (which applies section 29(3)(c) of the Taxes Management Act 1970) there shall be substituted--

" (a) section 29(1)(c) (excessive relief) as it has effect apart from section 29(2) to (10) of that Act; " ;

(b) in paragraph (b) (which applies section 30 of the Taxes Management Act 1970) after the words in parentheses there shall be inserted "apart from subsection (1B)";

(c) in paragraph (c) (which applies section 88 of the Taxes Management Act 1970) for "section 88" there shall be substituted "section 86"; and

(d) for the words following paragraph (d) there shall be substituted--

" shall apply in relation to an amount which is paid to any person by the Board as an amount recoverable by virtue of section 54(6)(b) above but to which that person is not entitled as if it were income tax which ought not to have been repaid and, where that amount was claimed by that person, as if it had been repaid as respects a chargeable period as a relief which was not due. "

(3) After subsection (3) there shall be inserted--

" (3A) In the application of section 86 of the Taxes Management Act 1970 by virtue of subsection (3) above in relation to sums due and payable by virtue of an assessment made under section 29(1)(c) or 30 of that Act, as applied by that subsection, the relevant date--

(a) in a case where the person falling within section 54(6) above has made any interim claim, within the meaning of regulations made under subsection (1) and section 54(4) above, as respects some part of the year of assessment for which the assessment is made, is 1st January in that year of assessment; and

(b) in any other case, is the later of the following dates, that is to say--

(i) 1st January in the year of assessment for which the assessment is made; or

(ii) the date of the making of the payment by the Board which gives rise to the assessment. "

13 In section 178 of the Finance Act 1989 (setting rates of interest) in subsection (2)(f) (which specifies the provisions of the Taxes Management Act 1970 to which the section applies) the words "88" shall be omitted.

The Finance Act 1991

14 (1) Section 33 of the [1991 c. 31.] Finance Act 1991 (vocational training) shall be amended in accordance with the following provisions of this paragraph.

(2) In subsection (3) (which applies specified provisions of the Taxes Management Act 1970 to the payment of an amount claimed under section 32(5)(b))--

(a) for paragraph (a) (which applies section 29(3)(c) of the Taxes Management Act 1970) there shall be substituted--

" (a) section 29(1)(c) (excessive relief) as it has effect apart from section 29(2) to (10) of that Act; " ;

(b) in paragraph (b) (which applies section 30 of the [1970 c. 9.] Taxes Management Act 1970) after the words in parentheses there shall be inserted "apart from subsection (1B)";

(c) in paragraph (c) (which applies section 88 of the Taxes Management Act 1970) for "section 88" there shall be substituted "section 86"; and

(d) for the words following paragraph (d) there shall be substituted--

" shall apply in relation to an amount which is paid to any person by the Board as an amount recoverable by virtue of section 32(5)(b) above but to which that person is not entitled as if it were income tax which ought not to have been repaid and, where that amount was claimed by that person, as if it had been repaid as respects a chargeable period as a relief which was not due. "

(3) After subsection (3) there shall be inserted--

(a) in a case where the person falling within section 32(5) above has made any interim claim, within the meaning of regulations made under subsection (1) above, as respects some part of the year of assessment for which the assessment is made, is 1st January in that year of assessment; and

(b) in any other case, is the later of the following dates, that is to say--

(i) 1st January in the year of assessment for which the assessment is made; or

(ii) the date of the making of the payment by the Board which gives rise to the assessment. "

The Taxation of Chargeable Gains Act 1992

15 (1) Section 281 of the [1992 c. 12.] Taxation of Chargeable Gains Act 1992 (payment by instalments of tax on gifts) shall be amended in accordance with the following provisions of this paragraph.

(2) In subsection (5), for paragraph (a) (tax payable by instalments to carry interest in accordance with Part IX of the Taxes Management Act 1970, except section 88) there shall be substituted--

" (a) tax payable by instalments by virtue of this section carries interest in accordance with Part IX of the Management Act as that Part applies where no election is made under subsection (2) above, and " .

(3) In subsection (6) (power to pay at any time unpaid tax payable by instalments, with interest to the date of payment) after "with interest" there shall be inserted "(determined in accordance with subsection (5)(a) above)".

(4) In subsection (7) (cases where tax payable by instalments, with interest to the date of payment, becomes due and payable immediately) after "with interest" there shall be inserted "(determined in accordance with subsection (5)(a) above as if the tax were tax payable by instalments by virtue of this section)".

The Finance Act 1995

16 In section 73(4) of the [1995 c. 4.] Finance Act 1995 (power to apply certain provisions of the Taxes Management Act 1970 in relation to certain sums payable in connection with venture capital trusts)--

(a) for "section 29(3)(c)" there shall be substituted "section 29(1)(c)";

(b) for "section 88" there shall be substituted "section 86"; and

" and section 86 of that Act may be so applied with such modifications as respects the relevant date as may be specified in the regulations. "

Commencement

17 (1) Paragraphs 1 to 3, 6(2)(a) and (b), 8, 10, 11(3)(a) and (b), 12(2)(a) and (b), 14(2)(a) and (b) and 16(a) above have effect, subject to sub-paragraph (2) below--

(a) for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment; and

(b) for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the [1994 c. 9.] Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).

(2) Paragraphs 1, 3, 6(2)(a) and (b), 10, 11(3)(a) and (b), 12(2)(a) and (b) and 14(2)(a) and (b) above, so far as relating to partnerships whose trades, professions or businesses were set up and commenced before 6th April 1994, has effect as respects the year 1997-98 and subsequent years of assessment.

(3) Paragraphs 4, 5, 6(2)(c) and (3), 11(3)(c) and (4), 12(2)(c) and (3), 13, 14(2)(c) and (3), 15 and 16(b) and (c) above have effect, subject to sub-paragraph (4) below--

(a) as respects the year 1996-97 and subsequent years of assessment; and

(b) in relation to any income tax or capital gains tax which--

(i) is charged by an assessment made on or after 6th April 1998; and

(ii) is for the year 1995-96 or any earlier year of assessment;

and where sub-paragraph (4) of paragraph 11, sub-paragraph (3) of paragraph 12, or sub-paragraph (3) of paragraph 14 has effect by virtue of paragraph (b) of this sub-paragraph it shall have effect with the substitution, in the provision inserted by that sub-paragraph, for "section 29(1)(c)" of "section 29(3)(c)".

(4) Paragraphs 4, 6(2)(c) and (3), 11(3)(c) and (4), 12(2)(c) and (3), 13 and 14(2)(c) and (3) above, so far as relating to partnerships whose trades, professions or businesses were set up and commenced before 6th April 1994 have effect--

(a) as respects the year 1997-98 and subsequent years of assessment; and

(b) in relation to any income tax which--

(i) is charged by an assessment made on or after 6th April 1998; and

(ii) is for the year 1995-96 or any earlier year of assessment.

(5) Paragraphs 7 and 11(2) above have effect--

(a) as respects the year 1996-97 and subsequent years of assessment; and

(b) subject to sub-paragraphs (6) and (7) below, in relation to any income tax or capital gains tax which--

(i) is charged by an assessment made on or after 6th April 1998; and

(ii) is for the year 1995-96 or any earlier year of assessment.

(6) Sub-paragraph (5)(b) above does not apply to paragraph 7 above so far as paragraph 7 provides for the omission of--

(a) paragraph (a) of subsection (4) of section 374A of the Taxes Act 1988, and

(b) the words "and as if" so far as they relate to paragraph (a) of that subsection.

(7) Sub-paragraph (5)(b) above does not apply to paragraph 11(2) above so far as paragraph 11(2) provides for the omission of--

(a) the words "sections 55(1) (recovery of tax not postponed) and", and

(b) the words " and as if--

(a) the assessment were among those specified in "

so far as those words relate to the words mentioned in paragraph (a) of this sub-paragraph.

(8) Paragraphs 6(2)(d), 11(3)(d), 12(2)(d) and 14(2)(d) above shall not apply in relation to any payment if the payment, or the claim on which it is made, was made before the day on which this Act is passed.

(9) Paragraph 9 above has effect as respects accounting periods ending on or after the day appointed under section 199 of the [1994 c. 9.] Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).

(10) Any power to make regulations exercisable by virtue of an amendment made by any of the preceding provisions of this Schedule may be exercised so as to make provision having effect in relation to any year of assessment in relation to which that provision has effect in accordance with sub-paragraphs (1) to (9) above.

Section 133.

SCHEDULE 19 Self-assessment: claims and enquiries

Introductory

1 The [1970 c. 9.] Taxes Management Act 1970, as it has effect--

(a) for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and

(b) for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),

shall be amended in accordance with the following provisions of this Schedule.

Matters subject to enquiry

2 In each of sections 9A(1), 11AB(1), 12AC(1), 19A(1), 28A(1) and 28B(1) (matters subject to enquiry), after paragraph (b) there shall be inserted " or

Power to call for documents

3 (1) In section 19A (power to call for documents for the purposes of certain enquiries), after subsection (2) there shall be inserted the following subsection--

" (2A) The officer of the Board may also (whether or not he imposes a requirement under subsection (2) above), by a notice in writing, require the taxpayer, within such time (which shall not be less than 30 days) as may be specified in the notice--

(a) to produce to the officer such documents as are in the taxpayer's possession or power and as the officer may reasonably require for the purpose of making a determination for the purposes of section 28A(7A)(d) or 28B(6A)(d) of this Act, and

(b) to furnish the officer with such accounts or particulars as he may reasonably require for that purpose. "

(2) In subsections (3), (5), (7), (9)(a) and (10) of that section, for the words "subsection (2)", in each place where they occur, there shall be substituted "subsection (2) or (2A)".

(3) In subsection (4) of that section, for "subsection (2) or" there shall be substituted "subsection (2), (2A) or".

(4) In section 97AA(1) (penalty for failure to comply with notice), for "section 19A(2) or (3)" there shall be substituted "section 19A(2), (2A) or (3)".

Further amendments of section 28A

4 (1) In section 28A (amendment of self-assessment where enquiries made in the case of individuals, trustees and companies)--

(a) in each of subsections (2)(a) and (4)(b), for "subsection (1)(b) above" there shall be substituted "subsection (1)(b) or (c) above";

(b) in subsection (4)(a), for "the tax contained in the taxpayer's self-assessment" there shall be substituted "any amount set out in the return"; and

(c) in subsection (5)(b), at the end there shall be inserted "and as to any claims or elections into which he has enquired."

(2) After subsection (4) of that section there shall be inserted the following subsections--

" (4A) If--

(a) any claim or election is included in the return,

(b) the officer is of opinion that the claim or election should be disallowed in whole or in part but that its disallowance to the extent he thinks appropriate would not require any amendment of the taxpayer's self-assessment, and

(c) the claim or election, so far as the officer thinks it should be disallowed, is not, before the end of the period mentioned in subsection (3) above, amended to the officer's satisfaction or withdrawn,

the officer shall, before the end of the period mentioned in subsection (4) above, give notice to the taxpayer of the extent to which he is disallowing the claim or election.

(4B) Subsection (4A)(c) above is without prejudice to any provision by virtue of which any claim or election is irrevocable or unamendable. "

(3) Immediately before subsection (8) of that section there shall be inserted the following subsections--

" (7A) Where, in the case of any return made in respect of any chargeable period--

(a) alternative methods are allowed by the Tax Acts for bringing amounts into account in that return,

(b) the return is made or amended using one of those methods,

(d) an officer of the Board determines which of the alternative methods is to be used by the Board in relation to the taxpayer for that period,

any enquiry into that return or into an amendment of it shall be conducted, and this section shall have effect, as if the only method allowed for the purposes of the Tax Acts were the method determined by the officer.

(7B) For the purposes of subsection (7A) above the cases where the Tax Acts allow alternative methods for bringing amounts into account in a return are--

(a) the case where those amounts may be brought into account either--

(i) in making a computation for the purposes of Case I or II of Schedule D; or

(ii) in making a computation for the purposes of any of Cases III to V of that Schedule;

(b) the case where the computation in which amounts are brought into account may be either--

(i) a computation for the purposes of Case I of Schedule D; or

(ii) a computation for the purpose of applying the basis (commonly called the I minus E basis) under which a company carrying on life assurance business or capital redemption business may be charged to tax on that business otherwise than under Case I of Schedule D.

(7C) In subsection (7B) above--

"life assurance business" includes annuity business within the meaning of Chapter I of Part XII of the principal Act; and
"capital redemption business" means any capital redemption business, within the meaning of section 458 of that Act, which is business to which that section applies. "

Further amendments of section 28B

5 (1) In section 28B (amendment of partnership statement following enquiry)--

(a) in subsection (3)(b), for "subsection (1)(b) above" there shall be substituted "subsection (1)(b) or (c) above"; and

(b) in subsection (5)(b), at the end there shall be inserted "and as to any claims or elections into which he has enquired."

(2) After subsection (6) of that section there shall be inserted the following subsections--

" (6A) Where, in the case of any return made in relation to any period of account--

(a) alternative methods are allowed by the Tax Acts for bringing amounts into account in that return,

(b) the return is made or amended using one of those methods,

(d) an officer of the Board determines which of the alternative methods is to be used by the Board in relation to the partnership for that period,

(6B) In subsection (6A) above "period of account" has the same meaning as in section 12AB of this Act; and subsection (7B) of section 28A of this Act applies for the purposes of subsection (6A) above as it applies for the purposes of subsection (7A) of that section. "

Right of appeal against notice disallowing claim in return

6 (1) In subsection (1) of section 31 (appeals)--

(a) after paragraph (a) there shall be inserted the following paragraph--

" (aa) a decision contained in a notice under section 28A(4A) of this Act disallowing a claim or election in whole or in part, or " ;

(b) in the words after paragraph (c), for "amendment or" there shall be substituted "amendment, the notice under section 28A(4A) of this Act or, as the case may be, the notice of".

(2) After that subsection there shall be inserted the following subsection--

" (1AA) The matters that may be questioned on any appeal against--

(a) an amendment under subsection (2) or (4) of section 28A of this Act,

(b) a decision contained in a notice under subsection (4A) of that section disallowing a claim or election in whole or in part, or

do not include any determination made for the purposes of section 28A(7A)(d) or 28B(6A)(d) of this Act. "

(3) In subsection (5) of that section, the words "against any assessment" shall be omitted.

7 In section 50 (procedure on appeals), after subsection (7) there shall be inserted the following subsection--

" (7A) If, on appeal, it appears to the Commissioners that a claim or election specified in a notice under section 28A(4A) of this Act should have been allowed or disallowed to an extent different from that specified in the notice, the claim or election shall be allowed or disallowed accordingly to the extent that appears to them appropriate, but otherwise the decision in the notice shall stand good. "

Claims not included in returns

8 (1) In Schedule 1A (claims not included in returns), in paragraph 4 (giving effect to claims and amendments), in sub-paragraph (1) for "(1A) and (3)" there shall be substituted "(1A), (3) and (4)".

(2) In sub-paragraph (2) of that paragraph, for "sub-paragraph (3)" there shall be substituted "sub-paragraphs (3) and (4)".

(3) After sub-paragraph (3) there shall be inserted the following sub-paragraph--

" (4) Nothing in this paragraph applies in relation to a claim or an amendment of a claim if the claim is not one for discharge or repayment of tax. "

9 (1) In paragraph 7 of Schedule 1A (amendment of claims where enquiries made), after sub-paragraph (3), there shall be inserted the following sub-paragraphs--

" (3A) If, in the case of a claim which is not a claim for discharge or repayment of tax--

(a) the officer is of opinion that the claim should be disallowed in whole or in part, and

(b) the claim, so far as the officer thinks it should be disallowed, is not, before the end of the period mentioned in sub-paragraph (2) above, amended to the officer's satisfaction or withdrawn,

the officer shall, before the end of the period mentioned in sub-paragraph (3) above, give notice to the taxpayer of the extent to which he is disallowing the claim.

(3B) Sub-paragraph (3A)(b) above is without prejudice to any provision by virtue of which any claim is irrevocable or unamendable. "

(2) In sub-paragraph (4)(b) of that paragraph, for "the amount which" there shall be substituted "whether the claim should be allowed in whole or in part and as to what amount (if any)".

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