What is the standard time limit for HMRC to open an enquiry into an interest restriction return under TIOPA 2010 section 41?

HMRC must open an enquiry before the latest of several deadlines: 39 months after the end of the period of account, or the next quarter date (31 January, 30 April, 31 July or 31 October) falling after the first anniversary of receiving the return or revised return. Whichever deadline falls latest governs.

How does the extended enquiry deadline work where estimated information is included in an interest restriction return?

Where an interest restriction return contains estimated information that remains non-final 36 months after the end of the period of account, HMRC has an additional 12 months beyond that 36-month point to open an enquiry. This creates a potential total window of 48 months from the end of the period of account.

What are the quarter dates used for calculating HMRC enquiry deadlines under section 41?

The quarter dates are 31 January, 30 April, 31 July, and 31 October. To calculate the deadline, HMRC identifies the first anniversary of receiving the return and then takes the next quarter date falling after that anniversary. This ensures HMRC always has at least one year from receipt, rounded up to the next quarter end.

Can HMRC open an enquiry after the normal time limits in section 41 have expired?

Yes. Separate provisions allow HMRC to open a late enquiry after the standard deadlines have passed or to reopen an enquiry that was previously closed. Compliance with the normal time limits in section 41 alone does not guarantee finality for the reporting company or the group's interest restriction return.

Taxation (International and Other Provisions) Act 2010 section 41

Normal time limits for opening enquiry

Section 41 sets out the standard time limits within which HMRC can open an enquiry into an interest restriction return submitted by a reporting company.

HMRC must normally open an enquiry before the latest of several specified deadlines, including 39 months after the end of the period of account
An alternative deadline is the end of the next quarter date (31 January, 30 April, 31 July or 31 October) falling after the first anniversary of HMRC receiving the return or revised return
Where estimated information has been included in a return and remains non-final after 36 months from the end of the period of account, HMRC has an additional 12 months beyond that 36-month point to open an enquiry
These time limits can be overridden by separate provisions that allow HMRC to open a late enquiry or reopen a previously closed one

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