Self Assessment After Leaving the UK: Statutory Framework
Updated: Oct 5
This note sets out the statutory provisions governing Self Assessment after leaving the UK.
1. Notice to file
A notice under section 8 of the Taxes Management Act 1970 (TMA 1970) requires a return for the tax year specified. The obligation arises from the notice and does not depend on the taxpayer's residence at the time of issue or on whether tax is payable.
A notice may be served by post addressed to the taxpayer's usual or last known place of residence, or place of business or employment (section 115 TMA 1970).
2. Penalties for failure to file
Penalties for failure to make a return are governed by Schedule 55 of the Finance Act 2009:
Initial penalty of £100 where the return is not delivered by the filing date (paragraph 3).
Daily penalty of £10 for up to 90 days where the failure continues after three months, from the date specified in a notice given by HMRC (paragraph 4).
Penalty after six months: the greater of 5% of the liability and £300 (paragraph 5).
Penalty after twelve months: the greater of 5% of the liability and £300, or higher percentages where information is deliberately withheld (paragraph 6).
Provision is made for special reduction (paragraph 16), for reasonable excuse (paragraph 23), and for appeals against penalty decisions (paragraphs 20 to 22).
For income tax self assessment, Schedule 55 is being replaced by the penalty regime in Schedules 24 and 25 of the Finance Act 2021, which applies from dates specified by regulation.
3. Determination
Where a return is not delivered by the filing date, HMRC may determine the amount of tax due (section 28C TMA 1970). A determination has effect as if it were a self-assessment until superseded by a self-assessment made in a return. No determination, and no self-assessment superseding one, may be made after the end of three years beginning with the filing date or, in the case of a superseding self-assessment, after the end of twelve months beginning with the date of the determination, whichever is later.
4. Assessment
HMRC may make an assessment where it discovers that tax has been under-assessed (section 29 TMA 1970). Notice of appeal against an assessment is to be given within 30 days after the date on which the notice of assessment was issued (section 31A TMA 1970).
5. Withdrawal of notice to file
HMRC may withdraw a notice to file under section 8B TMA 1970 within two years beginning with the end of the tax year to which it relates or, in exceptional circumstances, such extended period as HMRC may determine. A notice may not be withdrawn where a return has been delivered or a determination under section 28C has been made. A withdrawal notice may include provision cancelling liability to penalties under Schedule 55 FA 2009 (paragraph 17A).
6. Late appeals
An appeal made after the relevant time limit may proceed where HMRC agrees or, where HMRC does not agree, the tribunal gives permission (section 49 TMA 1970).
7. Residence and Self Assessment after leaving the UK
UK residence for each tax year is determined under the Statutory Residence Test (Schedule 45, Finance Act 2013). The tax year of departure may be split into a UK part and an overseas part where one of the cases in Part 3 of Schedule 45 applies.
Legislation referenced
Taxes Management Act 1970: sections 8, 8B, 28C, 29, 31A, 49, 115
Finance Act 2009: Schedule 55, paragraphs 3 to 6, 16, 17A, 20 to 23
Finance Act 2013: Schedule 45
Finance Act 2021: Schedules 24 and 25
