Taxes Consolidation Act 1997 Schedule 24 paragraph 13

Time limit for assessment

Paragraph 13 provides an extended time limit for making assessments or claims where a foreign tax credit needs to be adjusted because it was excessive or insufficient.

• Where a foreign tax credit is later found to be excessive or insufficient due to an adjustment of tax in either jurisdiction, the normal statutory time limits for assessments or claims do not apply.
• An assessment to recover an excessive credit, or a claim for additional credit, must be made within six years of the date when all material assessments, adjustments and determinations have been finalised.
• This extended window accommodates situations where protracted delays in either country mean that final tax liabilities are not settled within the normal time limits.
• The six-year period runs not from the original assessment but from the point at which all relevant figures are conclusively determined in both jurisdictions.