Taxes Management Act 1970 section 28G

Determination of amount notionally chargeable where no NRCGT return delivered

Section 28G deals with the power of HMRC to make a determination of the amount notionally chargeable on a non-resident capital gains tax (NRCGT) disposal where the taxpayer has failed to deliver the required NRCGT return.

• Where a person fails to deliver an NRCGT return for a non-resident capital gains tax disposal, an HMRC officer may make a determination of the amount notionally chargeable to the best of their information and belief.
• The determination has effect as if it were a self-assessment contained in the missing return, meaning HMRC can use it as the basis for collecting the tax due.
• Once the taxpayer subsequently delivers the outstanding NRCGT return with a proper self-assessment, the determination is superseded and ceases to have effect — in other words, the taxpayer's own figures replace HMRC's estimate.
• There is a time limit: the taxpayer cannot displace the determination by delivering a late return more than three years after the date the determination was issued, unless HMRC direct otherwise in a particular case.

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