Chartered Certified Accountants
Tax Investigation and Disclosure Specialists

What Is a Discovery Assessment and When Can HMRC Use One?

HMRC must meet legal conditions and assessment time limits when recovering tax from an earlier year

A discovery assessment allows HMRC to recover Income Tax or Capital Gains Tax that it believes has been underpaid for an earlier tax year. However, HMRC must meet legal conditions and act within the correct time limit. We explain when HMRC can issue an assessment, how far back it can go and what to do if you disagree.