»Ê¹ÚÌåÓýapp

Section 709 ITEPA 2003

»Ê¹ÚÌåÓýapp rule where there has been a change of practice (see EIM42440) is as follows:

• if an assessment is being made that includes income within EIM42450 received more that 12 months before the start of the assessing year (the year in which the assessment or self-assessment is made) and
• the assessment or self-assessment is being made more than 12 months after the year to which it relates, then
• the assessment or self-assessment must be made in accordance with the practice generally prevailing on 5 April in the year following the year for which it is being made.

For example, if the generally prevailing practice in relation to earnings from employment is changed by a decision in the Courts on 1 May 2004, make assessments:

• for 2002/03 and earlier years on the old practice whenever the assessments are made
• for 2003/04 onwards on the new practice whenever the assessments are made.

»Ê¹ÚÌåÓýapp rule operates in the simple way shown in this example because earnings from employment are assessed for the year they are received (see EIM42200Ìý´Ç²Ô·É²¹°ù»å²õ).

»Ê¹ÚÌåÓýapp rule does not operate so simply for other sorts of PAYE income (such as pensions or Social Security payments) where the income may be assessable in a different year to the year in which it was actually received.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)