Commentary

E1.202 Notification of liability to income tax and capital gains tax

Personal and employment tax

E1.202 Notification of liability to income tax and capital gains tax

Returns, information and HMRC enquiries

E1.202 Notification of liability to income tax and capital gains tax

A person chargeable to income tax or capital gains tax for a tax year is required to give notice to HMRC within the 'notification period' that they are so chargeable. This applies where the person has a liability to income tax that has not been fully collected at source or has capital gains tax to pay, although see also 'Capital gains arising UK land or property' below. Taxpayers within the self assessment regime who have received a notice to file a tax return for the tax year under TMA 1970, ss 8, 8A (ie a personal tax return or trust tax return) do not have to notify HMRC of their chargeability as they will declare their liability on their tax return (see E1.202A).1

The 'notification period', ie the deadline for informing HMRC of chargeability to income tax or capital gains tax is2:

  1.  

    (a)     six months after the end of the tax year, ie the taxpayer must notify their chargeability to HMRC by 5 October after the end of the tax year, or

  2.  

    (b)     the later of (a) six months after the end of the tax year, or (b) 30 days from the day after the notice to file was withdrawn

In the case of (b), this applies where HMRC has issued a notice to file a tax return and later withdraws the notice under TMA 1970, s 8B (see A4.104), but the taxpayer has income

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