HMRC’s interpretation of existing legislation was that there was an overriding time limit of 4 years in relation to the filing of a self assessment tax return. This interpretation was successfully challenged through the courts which ruled HMRC’s interpretation was incorrect.
As a result of the decision current legislation will be amended to make it clear that a 4 year time limit does apply to the submission of self assessment returns. The legislation will have effect from 5th April 2017.
This legislation will have no effect on the majority of taxpayers who file returns on time.