Taxes Management Act 1970 section 103

Time limit for penalties

Section 103 sets out the time limits within which HMRC can determine or pursue penalties, distinguishing between penalties calculated by reference to a tax liability and all other penalties.

• Where a penalty is calculated by reference to tax payable, HMRC must act within six years of the penalty being incurred, or within three years of the final determination of the relevant tax amount, whichever is later.
• For all other penalties (those not linked to a tax amount), HMRC must act within six years of the date the penalty was incurred or began to be incurred.
• Action within the time limit means either an HMRC officer determining the penalty or proceedings being commenced before the tribunal or a court.
• Subsections (2) and (3) have been repealed by subsequent Finance Acts and are no longer in force.