What legislation governs HMRC’s self-assessment infrastructure?

HMRC’s self-assessment infrastructure is governed by several key pieces of legislation:

Primary Legislation

Income and Corporation Taxes Act 1988 (ICTA 1988) – Contains numerous provisions including:

• Relief calculations for trading losses, farming profits, and personal pensions
• Post-cessation receipts and literary/artistic profits spreading
• Relief for losses on unquoted shares

Finance Act 1994 Chapter III – Establishes the foundational self-assessment framework:

• Personal and trustee returns (Section 178)
• Self-assessment requirements (Section 179)
• Partnership returns and assessments (Sections 184-185)

Taxes Management Act 1970 (TMA 1970) – Provides the administrative backbone:

• Revenue Determinations (Section 28C)
• Recovery powers for fraud/negligence (Section 29)
• Error relief provisions (Section 33)
• Payment on account rules (Section 59A)
• Balancing payment calculations (Section 59B)
• Penalty and surcharge provisions (Sections 59C, 93, 93A)
• Interest calculations (Section 86)

Taxation of Chargeable Gains Act 1992 (TCGA 1992) – Covers capital gains aspects including loss carry-back provisions

Supporting Legislation

Finance Acts 2008 & 2009 – Modern updates including:

• HMRC set-off powers (FA 2008)
• Updated interest calculation rules from 2011 onwards (FA 2009)

The Income Tax (Pay As You Earn) Regulations 2003 (SI 2003/2682) – Governs PAYE interactions with self-assessment

This legislative framework creates a comprehensive system covering filing obligations, payment schedules, penalties, interest calculations, and HMRC’s administrative powers for self-assessment.