Taxes Consolidation Act 1997 section 954

Making of assessments

Section 954 was deleted by Finance Act 2012 section 129(2). It set out the rules governing the making of tax assessments under the self-assessment system, including when assessments could be made, how they were to be based on returns, and the inspector's powers to make estimated assessments or to elect not to assess.

• An assessment on a chargeable person could not be made until after the return filing date (unless an early return had been filed) and was subject to a four-year time limit where a full and true disclosure had been made in the return.
• Assessments were generally based on the particulars in the person's own return, but the inspector could make an estimated assessment where no return was filed, the return was unsatisfactory, or information indicated it was insufficient.
• Where the inspector was satisfied that the full tax liability for a chargeable period had been paid, the inspector could elect not to make a formal assessment, while retaining the right to assess at a later date subject to the four-year rule.
• The section also preserved the inspector's right to make assessments outside the self-assessment system in certain capital gains tax situations, such as capital distributions, unpaid tax on gifts, and disposals where no tax clearance certificate was held.