Taxes Management Act 1970 section 35

Time limit: income received after year for which it is assessable

Section 35 deals with the extended time limit for assessing income tax where certain types of income are received in a later year than the year for which they are taxable.

• Applies to employment income, pension income, and social security income received after the tax year in which it is assessable
• An income tax assessment may be made up to 4 years after the end of the tax year in which the income was actually received
• The standard assessment time limit is effectively extended to reflect the delayed receipt of the income
• This ensures HMRC can still assess tax even when there is a timing mismatch between the year of assessability and the year of receipt