Guidance on Revenue Scotland’s Assessment Powers and Conditions for Tax Assessments

When Revenue Scotland can issue an assessment for extra tax

Revenue Scotland can issue its own formal assessment if it believes too little devolved tax was assessed, relief was claimed in excess, or a repayment of tax or interest should not have been made. It cannot usually do this just because it has changed its view: the law sets conditions, exceptions and time limits, and the officer must act honestly and reasonably.

• Revenue Scotland may assess where tax was not assessed, an earlier assessment was too low, relief was excessive, or tax or interest was repaid wrongly.
• In most cases, it can only assess if the problem was caused carelessly or deliberately by the taxpayer, their agent, or a partner.
• If the return followed the law or practice generally accepted at the time, Revenue Scotland will usually be blocked from assessing on that basis alone.
• The normal time limit is 5 years from the filing date, or from the date the return was received if filed late; this can extend to 20 years for deliberate behaviour.
• The assessment notice must state the amount due, issue date, payment date, and review or appeal deadline, and payment is normally due within 30 days.
• If the taxpayer wants to argue the assessment is wrong or out of time, they must do so through the formal review or appeal process; separate penalties may also apply.

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Revenue Scotland assessments: when Revenue Scotland can assess more tax

This page explains when Revenue Scotland can issue its own assessment to recover devolved tax, interest, or an excessive repayment. In practice, this matters where Revenue Scotland believes too little tax was assessed, too much relief was given, or money was repaid when it should not have been. The rules are important because they set out both Revenue Scotland’s powers and the limits on those powers, including conditions and time limits.

What this rule is about

Under the Revenue Scotland and Tax Powers Act 2014, Revenue Scotland can make what is called a Revenue Scotland assessment. This is a formal assessment issued by Revenue Scotland where it believes the amount already assessed is too low, no assessment was made when one should have been, relief was excessive, or tax and interest were repaid when they should not have been.

The guidance is not saying Revenue Scotland can reopen any case at any time. Its power depends on statutory conditions and time limits. The legislation also requires the designated officer to come to the relevant view honestly and reasonably.

This is part of the wider framework for devolved taxes in Scotland, including the correction of underpaid tax and the recovery of excessive repayments.

What the official source says

The official material says Revenue Scotland may make an assessment if a designated officer honestly and reasonably considers that:

• tax that ought to have been assessed was not assessed;
• an existing assessment is insufficient;
• a relief claimed or given is excessive; or
• tax or associated interest has been repaid, but should not have been.

As a general rule, Revenue Scotland can only make such an assessment if the problem was brought about carelessly or deliberately by:

• the taxpayer;
• someone acting on the taxpayer’s behalf; or
• a partner of the taxpayer.

There is also protection where the issue arose because the return used a basis of calculation that reflected the law or practice generally prevailing at the time. In that situation, Revenue Scotland generally cannot make an assessment on that basis alone.

The guidance identifies an important exception. If a person makes a claim for repayment relief under section 107 of the 2014 Act, and the grounds for that claim are also grounds for Revenue Scotland to assess that same person, Revenue Scotland may issue the assessment regardless of those usual conditions.

On time limits, the general rule is five years from the relevant date. The relevant date is the filing date, or if the return was filed late, the date Revenue Scotland received it. A longer 20-year limit applies where the loss of tax or relevant situation was brought about deliberately. Special rules also apply where the taxpayer has died, and in certain cases involving repayment claims or amendments made when an enquiry into a claim is closed.

The assessment notice must state the tax due, the date of issue, the payment date, and the time limit for seeking review or appealing. Once issued, the assessment cannot be altered except under the express statutory provisions referred to in the guidance.

Any amount due following the assessment must be paid within 30 days beginning with the date the assessment was issued. Late payment can lead to debt recovery and late payment penalties. Separate penalties may also arise for inaccuracies in a return or for failing to notify Revenue Scotland of an under-assessment that the taxpayer is aware of.

What this means in practice

The practical point is that Revenue Scotland has a statutory route to recover tax it believes has been lost, but it cannot simply do so because it has changed its mind. Usually it must be able to say that the under-assessment, excessive relief, or excessive repayment was caused by careless or deliberate conduct by the taxpayer, an agent, or a partner.

This matters in several common situations:

• a return understated the tax due because incorrect information was given;
• a relief was claimed too widely and Revenue Scotland later concludes it was excessive;
• a repayment was made and Revenue Scotland later decides it should not have been made;
• Revenue Scotland believes a previous assessment did not go far enough.

The rule about carelessness is broader than many people expect. It is not limited to the original filing of the return. If inaccurate information was given and the taxpayer or their representative later discovers the inaccuracy, there is a duty to take reasonable steps to tell Revenue Scotland. Failing to do that can itself mean the situation is treated as careless.

The “generally prevailing practice” protection is also important. If a return followed the basis of calculation that was accepted at the time, Revenue Scotland generally cannot later assess just because the position is now seen differently. But that protection is not absolute, because the guidance says there is an exception linked to certain repayment claims under section 107.

Once an assessment is issued, the taxpayer should treat it as a formal tax decision with immediate consequences. Payment is normally due within 30 days, and any challenge to the assessment, including a challenge based on the time limit having expired, must be made through the review or appeal process.

How to analyse it

A sensible way to analyse a Revenue Scotland assessment is to ask the following questions in order.

• What is Revenue Scotland saying has gone wrong? Is it saying there was no assessment, an insufficient assessment, excessive relief, or an excessive repayment?
• Who is the assessment against? Usually this will be the taxpayer, but for excessive repayment it may be the person who received the repayment.
• What conduct is said to have caused the problem? Was it allegedly careless or deliberate, and by whom: the taxpayer, an agent, or a partner?
• Did the original return follow the basis generally prevailing at the time? If so, does that limit Revenue Scotland’s power?
• Is one of the statutory exceptions in play, especially the exception connected with a section 107 repayment claim?
• What is the relevant date for time limit purposes? Was the return filed on time or late?
• Is Revenue Scotland still within the normal five-year limit, or is it relying on the 20-year deliberate behaviour rule or another special timing rule?
• Does the notice contain the required information, including the amount due, issue date, payment date, and review or appeal time limits?
• Are there separate penalty risks arising from an inaccurate return, late payment, or failure to notify an under-assessment?

If the taxpayer wants to argue that Revenue Scotland is out of time, the guidance makes clear that this must be raised by giving notice of review or appeal against the assessment. In other words, the time-limit objection is not automatic; it must be actively pursued through the dispute process.

Example

Illustration: a taxpayer files a return and claims relief that reduces the tax due. Later, Revenue Scotland concludes that part of the relief was not available and that the original assessment is therefore insufficient. If Revenue Scotland honestly and reasonably considers that the excessive relief arose because the taxpayer or their agent acted carelessly, it may issue a Revenue Scotland assessment for the additional tax. If the return was filed on time, the normal question will be whether the assessment was issued within five years of the filing date. Once issued, the amount assessed is generally payable within 30 days, even if the taxpayer is considering a review or appeal.

Why this can be difficult in practice

The main difficulty is often not the mechanics of the assessment, but the reason why Revenue Scotland says it is entitled to assess.

First, whether conduct was careless can be fact-sensitive. The statutory concept turns on failure to take care, and the guidance also extends carelessness to cases where inaccurate information is later discovered but Revenue Scotland is not told. That can create disputes about what the taxpayer knew, when they knew it, and whether reasonable steps were taken.

Secondly, the protection for returns made on the basis generally prevailing at the time can be difficult to apply. It requires a careful look at what the accepted legal or practical position actually was when the return was made. That may not always be obvious.

Thirdly, the time-limit rules are technical. The relevant date changes if the return was late, and there are special rules for deliberate behaviour, deceased taxpayers, repayment claims under section 107, and assessments following closure of enquiries into claims. A taxpayer may think an assessment is out of time when one of these special rules may still allow it.

Finally, the guidance distinguishes between the assessment itself and related penalty exposure. A person may be dealing not only with the assessed tax and interest, but also with separate questions about inaccuracies, late payment, or failure to notify an under-assessment.

Key takeaways

• Revenue Scotland can assess additional tax, interest, or excessive repayments, but its power is subject to statutory conditions and time limits.
• Usually the issue must have been brought about carelessly or deliberately by the taxpayer, an agent, or a partner, unless a statutory exception applies.
• If an assessment is disputed, including on the basis that it is out of time, that must be raised through the formal review or appeal process.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Guidance on Revenue Scotland’s Assessment Powers and Conditions for Tax Assessments

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