Corporation Tax Act 2010 section 978

Time limit for giving notice

Section 978 sets the time limit within which HMRC must serve a notice to recover unpaid corporation tax from a person connected with the taxpayer company.

• HMRC must serve the notice within 3 years of the date on which the taxpayer company's corporation tax liability for the relevant accounting period is finally determined.
• The starting date for the 3-year window varies depending on how the unpaid tax arose — whether through an HMRC determination, a self-assessment, or a discovery assessment.
• Where the tax is charged via self-assessment, the starting date is the latest of several possible dates, including enquiry deadlines, completion of enquiries, amendments by HMRC officers, or resolution of any appeal.
• Where the tax is charged via a discovery assessment, the starting date is either the date the tax becomes due and payable (if no appeal) or the date the appeal is finally determined.