Taxation (International and Other Provisions) Act 2010 section 114

Time limits for action if tax adjustment makes reduction too large or too small

Section 114 allows assessments or claims to be made outside the normal time limits when a deduction for foreign tax (taken instead of a tax credit) turns out to be too large or too small because of a later tax adjustment.

• Where a deduction from income or capital gains for foreign tax becomes excessive or insufficient due to an adjustment of UK or overseas tax, or where income is increased under section 112(3), the normal statutory time limits for making assessments or claims do not apply.
• The extended deadline requires that any resulting claim or assessment must be made within 6 years of the date on which all material determinations have been finalised, whether those determinations were made in the UK or abroad.
• A "material determination" means any assessment, adjustment, increase or other determination that is relevant to deciding whether a deduction should be made and, if so, what amount that deduction (or income increase) should be.
• The overridden time limits include those found in the Taxes Management Act 1970, the Income and Corporation Taxes Act, the Taxation of Chargeable Gains Act 1992, and any other provision of the Tax Acts that restricts the time for making assessments or relief claims.