Review of HMRC powers, deterrents and safeguards: Excise modernisation and compliance checks
This measure will update the compliance checking framework for excise duty, including:
- modernising information and inspection powers; and
- aligning the record-keeping rules and the time limits for assessments and claims with changes made to other taxes and duties.
The current legislation on excise record-keeping requirements will be changed so that the high-level rules for record-keeping are aligned across all taxes and duties. The standard time limit for making claims and assessments will be increased from three to four years. However, the extended 20 year time limit for deliberate underpayment of excise duty will be retained.
Who will be affected?
Businesses and individuals involved with excise duties on alcohol, tobacco, energy products, gambling duties and air passenger duties.
Time limits for making assessments and claims need a transitional period and are not expected to become fully operative before 1 April 2012. The record-keeping changes and amendments to information and inspection powers are expected to have effect from 1 April 2011.
This is a measure which is part of the ongoing process to reform and align the UK time limits for making claims and assessments across taxes.