Legalize / United Kingdom / Public General Act

Finance Act 1998

Type Public General Act

Publication 1998-07-31

Last updated 2026-04-22

State In force

Department Statute Law Database

Source legislation.gov.uk

PDF Download

articles Not indexed

Reform history JSON API

Loss of tax brought about carelessly or deliberately

43

A discovery assessment for an accounting period for which the company has delivered a company tax return, or a discovery determination, may be made if the situation mentioned in paragraph 41(1) or (2) was brought about carelessly or deliberately by—

(a) the company, or

(b) a person acting on behalf of the company, or

44

(1) A discovery assessment for an accounting period for which the company has delivered a company tax return, or a discovery determination, may be made if at the time when an officer of Revenue and Customs—

(a) ceased to be entitled to give a notice of enquiry into the return, or

(b) in a case where a notice of enquiry into the return was given—

(i) issued a partial closure notice as regards a matter to which the situation mentioned in paragraph 41(1) or (2) relates, or

(ii) if no such partial closure notice was issued, issued a final closure notice,

he could not have been reasonably expected, on the basis of the information made available to him before that time, to be aware of the situation mentioned in paragraph 41(1) or (2).

(2) For this purpose information is regarded as made available to an officer of Revenue and Customs if—

(a) it is contained in a relevant return by the company or in documents accompanying any such return, or

(b) it is contained in a relevant claim made by the company or in any accounts, statements or documents accompanying any such claim, or

(c) it is contained in any documents, accounts or information produced or provided by the company to an officer of Revenue and Customs for the purposes of an enquiry into any such return or claim, or

(d) it is information the existence of which, and the relevance of which as regards the situation mentioned in paragraph 41(1) or (2)—

(i) could reasonably be expected to be inferred by an officer of Revenue and Customs from information falling within paragraphs (a) to (c) above, or

(ii) are notified in writing to an officer of Revenue and Customs by the company or a person acting on its behalf.

(3) In sub-paragraph (2)—

“relevant return” means the company’s company tax return for the period in question or either of the two immediately preceding accounting periods, and

“relevant claim” means a claim made by or on behalf of the company as regards the period in question or an application under section 751A of the Taxes Act 1988 made by or on behalf of the company which affects the company's tax return for the period in question.

Return made in accordance with prevailing practice

45

No discovery assessment for an accounting period for which the company has delivered a company tax return, or discovery determination, may be made if—

(a) the situation mentioned in paragraph 41(1) or (2) is attributable to a mistake in the return as to the basis on which the company’s liability ought to have been computed, and

(b) the return was in fact made on the basis or in accordance with the practice generally prevailing at the time when it was made.

General time limits for assessments

46

(1) Subject to any provision of the Taxes Acts allowing a longer period in any particular class of case no assessment may be made more than 4 years after the end of the accounting period to which it relates.

(2) An assessment in a case involving a loss of tax brought about carelessly by the company (or a related person) may be made at any time not more than 6 years after the end of the accounting period to which it relates (subject to sub-paragraph (2A) and to any other provision of the Taxes Acts allowing a longer period).

(2A) An assessment in a case involving a loss of tax—

(a) brought about deliberately by the company (or a related person),

(b) attributable to a failure by the company to comply with an obligation under paragraph 2, ...

(c) attributable to arrangements in respect of which the company has failed to comply with an obligation under section 309, 310 or 313 of the Finance Act 2004 (obligation of parties to tax avoidance schemes to provide information to Her Majesty's Revenue and Customs), or

(d) attributable to arrangements which were expected to give rise to a tax advantage in respect of which the company was under an obligation to notify the Commissioners for Her Majesty's Revenue and Customs under section 253 of the Finance Act 2014 (duty to notify Commissioners of promoter reference number) but failed to do so,

may be made at any time not more than 20 years after the end of the accounting period to which it relates (subject to any provision of the Taxes Acts allowing a longer period).

(2B) In this paragraph “related person”, in relation to a company, means—

(a) a person acting on behalf of the company, or

(b) a person who was a partner of the company at the relevant time.

(3) Any objection to the making of an assessment on the ground that the time limit for making it has expired can only be made on an appeal against the assessment.

Assessment procedure

47

(1) Notice of an assessment to tax on a company must be served on the company stating—

(a) the date on which the notice is issued, and

(b) the time within which any appeal against the assessment may be made.

(2) After that notice has been served on the company, the assessment may not be altered except in accordance with the express provisions of the Taxes Acts.

Appeal against assessment

48

(1) An appeal may be brought against any assessment to tax on a company which is not a self-assessment.

(2) Notice of appeal must be given—

(a) in writing,

(b) within 30 days after notice of the assessment was issued,

Application of provisions to discovery determinations

49

The provisions of paragraphs 46 to 48 (assessments: general provisions as to time limits, procedure and appeals) apply to a discovery determination as they apply to an assessment.

Transfer pricing records: carelessness

49A

(1) This paragraph applies where—

(a) the situation mentioned in paragraph 41(1) or (2) has been brought about by a person within any of paragraphs (a) to (c) of paragraph 43 (“P”) as regards a relevant accounting period of a company,

(b) the situation relates to the calculation of profits or losses in accordance with Part 4 of TIOPA 2010 (transfer pricing) for the purposes of that period, and

(c) the company has failed to comply, in relation to specified relevant transfer pricing records that relate to the calculation, with either or both of—

(i) paragraph 21 (duty to keep and preserve records), and

(ii) an information notice (within the meaning of Schedule 36 to the Finance Act 2008 (information and inspection powers)).

(2) It is to be presumed for the purposes of this Part of this Schedule that the situation mentioned in paragraph 41(1) or (2) was brought about carelessly by P, unless—

(a) the situation was brought about deliberately by P, or

(b) the company satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that P took reasonable care to avoid the situation.

(3) For the purposes of this paragraph—

(a) “relevant accounting period of a company” means an accounting period in respect of which—

(i) the company, together with one or more other enterprises, constitutes an MNE Group within the meaning of the Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) Regulations 2016 (S.I. 2016/237) (see regulation 2(3) of those Regulations), and

(ii) the MNE Group meets the threshold requirement within the meaning of those Regulations (see regulations 3(2) to (4) of those Regulations);

(b) records are “specified relevant transfer pricing records” if—

(i) they are relevant transfer pricing records specified, or of a description specified, in regulations under paragraph 21 (duties to keep and preserve records), and

(ii) the company is required to keep and preserve those records under that paragraph.

Part VI — Overpaid tax, excessive assessments or repayments, etc

Relief in case of double assessment

50

(1) A company which believes it has been assessed to tax more than once for the same cause and for the same accounting period may make a claim for relief—

(a) by notice in writing,

(b) given to the Board.

(2) If on a claim being made the Board are satisfied that the company has been assessed to tax more than once for the same cause and for the same accounting period, they shall amend the assessment or assessments concerned, or give relief by way of discharge or repayment of tax or otherwise, so as to eliminate the double charge.

(3) An appeal may be brought against the Board’s decision on a claim for relief under this paragraph.

Claim for relief for overpaid tax etc

51

(1) This paragraph applies where—

(a) a person has paid an amount by way of tax but believes that the tax was not due, or

(b) a person has been assessed as liable to pay an amount by way of tax, or there has been a determination or direction to that effect, but the person believes that the tax is not due.

(2) The person may make a claim to the Commissioners for Her Majesty's Revenue and Customs for repayment or discharge of the amount.

(3) Paragraph 51A makes provision about cases in which the Commissioners for Her Majesty's Revenue and Customs are not liable to give effect to a claim under this paragraph.

(4) The following make further provision about making and giving effect to claims under this paragraph—

(a) paragraphs 51B to 51F and Part 7 of this Schedule, and

(b) Schedule 1A to the Taxes Management Act 1970 (which is applied by that Part).

(5) Paragraph 51G makes provision about the application of this paragraph and paragraphs 51A to 51F to amounts paid under contract settlements.

(6) The Commissioners for Her Majesty's Revenue and Customs are not liable to give relief in respect of a case described in sub-paragraph (1)(a) or (b) except as provided—

(a) by this Schedule and Schedule 1A to the Taxes Management Act 1970 (following a claim under this paragraph), or

(b) by or under another provision of the Corporation Tax Acts.

(7) For the purposes of this paragraph and paragraphs 51A to 51G, an amount paid by one person on behalf of another is treated as paid by the other person.

Cases in which Commissioners not liable to give effect to a claim

51A

(1) The Commissioners for Her Majesty's Revenue and Customs are not liable to give effect to a claim under paragraph 51 if or to the extent that the claim falls within a case described in this paragraph (see also paragraphs 51BA and 51C(5)).

(2) Case A is where the amount paid, or liable to be paid, is excessive by reason of—

(a) a mistake in a claim, election or a notice,

(b) a mistake consisting of making or giving, or failing to make or give, a claim, election or notice,

(c) a mistake in allocating expenditure to a pool for the purposes of the Capital Allowances Act or a mistake consisting of making, or failing to make, such an allocation, or

(d) a mistake in bringing a disposal value into account for the purposes of that Act or a mistake consisting of bringing, or failing to bring, such a value into account.

(3) Case B is where the claimant is or will be able to seek relief by taking other steps under the Corporation Tax Acts.

(4) Case C is where the claimant—

(a) could have sought relief by taking such steps within a period that has now expired, and

(b) knew, or ought reasonably to have known, before the end of that period that such relief was available.

(5) Case D is where the claim is made on grounds that—

(a) have been put to a court or tribunal in the course of an appeal by the claimant relating to the amount paid or liable to be paid, or

(b) have been put to Her Majesty's Revenue and Customs in the course of an appeal by the claimant relating to that amount that is treated as having been determined by a tribunal (by virtue of section 54 of the Taxes Management Act 1970 (settling of appeals by agreement)).

(6) Case E is where the claimant knew, or ought reasonably to have known, of the grounds for the claim before the latest of the following—

(a) the date on which an appeal by the claimant relating to the amount paid, or liable to be paid, in the course of which the ground could have been put forward (a “relevant appeal”) was determined by a court or tribunal (or is treated as having been so determined),

(b) the date on which the claimant withdrew a relevant appeal to a court or tribunal, and

(7) Case F is where the amount in question was paid or is liable to be paid—

(a) in consequence of proceedings enforcing the payment of that amount brought against the claimant by Her Majesty's Revenue and Customs, or

(b) in accordance with an agreement between the claimant and Her Majesty's Revenue and Customs settling such proceedings.

(8) Case G is where—

(a) the amount paid, or liable to be paid, is excessive by reason of a mistake in calculating the claimant's liability to corporation tax, and

(b) liability was calculated in accordance with the practice generally prevailing at the time.

(9) Case G does not apply where the amount paid, or liable to be paid, is tax which has been charged contrary to EU law.

(10) For the purposes of sub-paragraph (9), an amount of tax is charged contrary to EU law if, in the circumstances in question, the charge to tax is contrary to—

(a) the provisions relating to the free movement of goods, persons, services and capital in Titles II and IV of Part 3 of the Treaty on the Functioning of the European Union, or

(b) the provisions of any subsequent treaty replacing the provisions mentioned in paragraph (a).

Making a claim

51B

(1) A claim under paragraph 51 may not be made more than 4 years after the end of the relevant accounting period.

(2) In relation to a claim made in reliance on paragraph 51(1)(a), the relevant accounting period is—

(a) where the amount paid, or liable to be paid, is excessive by reason of a mistake in a company tax return or returns, the accounting period to which the return (or, if more than one, the first return) relates, and

(b) otherwise, the accounting period in respect of which the amount was paid.

(3) In relation to a claim made in reliance on paragraph 51(1)(b), the relevant accounting period is—

(a) where the amount liable to be paid is excessive by reason of a mistake in a company tax return or returns, the accounting period to which the return (or, if more than one, the first return) relates, and

(b) otherwise, the accounting period to which the assessment, determination or direction relates.

(4) A claim under paragraph 51 may not be made by being included in a company tax return.

(5) Sub-paragraph (1) is subject to paragraph 51BA.

Determinations under paragraphs 36 and 37: special rules

51BA

(1) This paragraph applies where—

(a) a determination has been made under paragraph 36 or 37 of an amount that a person is liable to pay by way of tax, but the person believes the tax is not due or, if it has been paid, was not due,

(b) relief would be available under paragraph 51 but for the fact that—

(i) the claim falls within Case C (see paragraph 51A(4)),

(ii) the claim falls within Case F(a) (see paragraph 51A(7)(a)), or

(iii) more than 4 years have elapsed since the end of the relevant accounting period (see paragraph 51B(1)), and

(c) if the claim falls within Case F(a), the person was neither present nor legally represented during the enforcement proceedings in question.

(2) A claim under paragraph 51 for repayment or discharge of the amount may be made, and effect given to it, despite paragraph 51A(4), paragraph 51A(7)(a) or paragraph 51B(1), as the case may be.

(3) But the Commissioners for Her Majesty’s Revenue and Customs are not liable to give effect to a claim made in reliance on this paragraph unless conditions A, B and C are met.

(4) Condition A is that in the opinion of the Commissioners for Her Majesty’s Revenue and Customs it would be unconscionable for the Commissioners for Her Majesty’s Revenue and Customs to seek to recover the amount (or to withhold repayment of it, if it has already been paid).

(5) Condition B is that the person’s affairs (as respects matters concerning the Commissioners for Her Majesty’s Revenue and Customs) are otherwise up to date or arrangements have been put in place, to the satisfaction of the Commissioners for Her Majesty’s Revenue and Customs, to bring them up to date so far as possible.

(6) Condition C is that either—

(a) the person has not relied on this paragraph on a previous occasion (whether or not in respect of the same determination), or

(b) the person has done so, but in the exceptional circumstances of the case should be allowed to do so again on the present occasion.

(7) For the purposes of sub-paragraph (6)—

(a) a person has relied on this paragraph on a previous occasion if the person has made a claim (or a composite set of claims involving one or more determinations and accounting periods) in reliance on this paragraph on a previous occasion, and

(b) it does not matter whether that claim (or set of claims) succeeded.

(8) A claim made in reliance on this paragraph must include (in addition to anything required by Schedule 1A to the Taxes Management Act 1970) such information and documentation as is reasonably required for the purpose of determining whether conditions A, B and C are met.

The claimant: one person accountable for amounts payable by another

51C

(1) Sub-paragraph (2) applies where a person (“P”) is accountable to the Commissioners for Her Majesty's Revenue and Customs under a relevant enactment for an amount that has been or is to be set off against a liability of another person (“T”) under a relevant enactment.

(2) A claim under paragraph 51 in respect of the amount may be made only by T.

(3) Sub-paragraph (4) applies where—

(a) a person (“P”) has paid an amount described in sub-paragraph (1) in the belief that P was accountable to the Commissioners for the amount under a relevant enactment, but

(b) P was not so accountable.

(4) A claim under paragraph 51 in respect of the amount may be made only by P.

(5) The Commissioners for Her Majesty's Revenue and Customs are not liable to give effect to a claim under sub-paragraph (4) if or to the extent that the amount has been repaid to T or set against amounts payable to the Commissioners by T.

(6) “Relevant enactment” means—

(a) Chapter 3 of Part 3 of the Finance Act 2004 or regulations under that Chapter (construction industry scheme), or

(b) any other provision of or made under the Taxes Acts.

The claimant: partnerships

51D

(1) This paragraph applies where—

(a) a trade, profession or business is carried on by two or more persons in partnership,

(b) an amount is paid, or liable to be paid, by one or more of those persons in accordance with a self-assessment, and

(2) A claim under paragraph 51 in respect of the amount—

(a) may be made by the relevant partner nominated to make the claim by all of the relevant partners, and

(b) may not be made by any other person.

(3) In relation to such a claim, references in paragraphs 51A to 51F to the claimant are to any of the relevant partners.

(4) “Relevant partner” means—

(a) a person who was a partner in the partnership at any time during the period in respect of which the partnership return was made, or

(b) the personal representative of such a person.

Assessment of claimant in connection with claim

51E

(1) This paragraph applies where—

(a) a claim is made under paragraph 51,

(b) the grounds for giving effect to the claim also provide grounds for a discovery assessment or discovery determination on the claimant in respect of any accounting period, and

(2) The following are relevant restrictions—

(a) the restrictions in paragraphs 42 to 45, and

(b) the expiry of a time limit for making a discovery assessment or discovery determination.

(3) Where this paragraph applies—

(a) the relevant restrictions are to be disregarded, and

(b) the discovery assessment or discovery determination is not out of time if it is made before the final determination of the claim.

(4) A claim is not finally determined until it, or the amount to which it relates, can no longer be varied (whether on appeal or otherwise).

Amendment of partnership return etc in connection with claim

51F

(1) This paragraph applies where—

(a) a claim is made under paragraph 51,

(b) the claimant is one of two or more persons carrying on a trade, profession or business in partnership,

(c) the grounds for giving effect to the claim also provide grounds for amending, under section 30B(1) of the Taxes Management Act 1970 (discovery of loss of tax from partnership), a return made by the partnership or any of the partners in respect of any period, and

(d) such an amendment could be made but for a relevant restriction.

(2) The following are relevant restrictions—

(a) the conditions in section 30B(4) to (6) of the Taxes Management Act 1970, and

(b) the expiry of a time limit for making an assessment under that section.

(3) Where this paragraph applies—

(a) the relevant conditions are to be disregarded, and

(b) the amendment is not out of time if it is made before the final determination of the claim.

(4) A claim is not finally determined until it, or the amount to which it relates, can no longer be varied (whether on appeal or otherwise).

Contract settlements

51G

(1) In paragraph 51(1)(a) the reference to an amount paid by a company by way of tax includes an amount paid by a person under a contract settlement in connection with tax believed to be due.

(2) Sub-paragraphs (3) to (6) apply if the person who paid the amount under the contract settlement (“the payer”) and the person from whom the tax was due (“the taxpayer”) are not the same person.

(3) In relation to a claim under paragraph 51 in respect of that amount—

(a) the references to the claimant in paragraph 51A(5) to (7) (Cases D, E and F) have effect as if they included the taxpayer,

(b) the reference to the claimant in paragraph 51A(8) (Case G) has effect as if it were a reference to the taxpayer,

(c) the references to the claimant in paragraphs 51E(1)(b) and 51F(1)(b) have effect as if they were references to the taxpayer, and

(d) references to tax in Schedule 1A to the Taxes Management Act 1970 (as it applies to a claim under this Part of this Schedule) include such an amount.

(4) Sub-paragraph (5) applies where the grounds for giving effect to a claim by the payer in respect of the amount also provide grounds for a discovery assessment or discovery determination on the taxpayer in respect of any chargeable period.

(5) The Commissioners for Her Majesty's Revenue and Customs may set any amount repayable to the payer by virtue of the claim against any amount payable by the taxpayer by virtue of the assessment or determination.

(6) The obligations of the Commissioners for Her Majesty's Revenue and Customs and the taxpayer are discharged to the extent of any set-off under sub-paragraph (5).

(7) “Contract settlement” means an agreement made in connection with any person's liability to make a payment to the Commissioners for Her Majesty's Revenue and Customs under or by virtue of an enactment.

Recovery of excessive repayments etc

52

(1) The provisions of paragraphs 41 to 48 relating to discovery assessments apply to an amount to which this sub-paragraph applies as if it were unpaid tax, unless—

(a) it is assessable under those provisions apart from this paragraph, or

(b) it is recoverable under section 826(8A) of the Taxes Act 1988 (interest overpaid which is recoverable in same way as interest charged).

(2) Sub-paragraph (1) applies to an amount paid to a company by way of—

(a) repayment of tax (or income tax) ... ,

(b) repayment supplement under section 825 of the Taxes Act 1988,

(bza) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ba) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(bb) land remediation tax credit or life assurance company tax credit under Part 14 of the Corporation Tax Act 2009, or

(bc) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(bd) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(be) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(bf) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(bg) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(bh) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(bi) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

to the extent that it ought not to have been paid.

(2A) The provisions of paragraphs 41 and 45 to 48 relating to discovery assessments apply to an amount paid to a company by way of—

(a) first-year tax credit under Schedule A1 to the Capital Allowances Act;

(b) R&D expenditure credit under Chapter 1A of Part 13 of the Corporation Tax Act 2009;

(d) creative sector credit,

but only to the extent that the company was not, or is no longer, entitled to the credit.

(2B) In this paragraph, “creative sector credit” means—

(a) audiovisual expenditure credit or video game expenditure credit under Chapter 3 of Part 14A of the Corporation Tax Act 2009,

(b) film tax credit under Part 15 of that Act,

(d) video game credit under Part 15B of that Act,

(e) theatre tax credit under Part 15C of that Act,

(f) orchestra tax credit under Part 15D of that Act, or

(g) museums and galleries exhibition credit under Part 15E of that Act.

(3) For the purposes of this paragraph—

(a) an amount is regarded as paid if it is allowed by way of set-off, and

(b) an amount is regarded as a repayment if it was intended as repayment but exceeds the amount paid by the company.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) An assessment to recover—

(a) an amount of tax repaid to a company in respect of an accounting period, or interest on any such repayment,

(aa) an amount of R&D expenditure credit paid to a company for an accounting period,

(ab) an amount of R&D tax credit paid to a company for an accounting period,

(ac) an amount of land remediation tax credit or life assurance company tax credit paid to a company for an accounting period, or

(ad) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ae) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(af) an amount of first-year tax credit under Schedule A1 to the Capital Allowances Act paid to a company for an accounting period,

(ag) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ah) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ai) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(aj) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ak) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(al) an amount of creative sector credit paid to a company for an accounting period, or

(b) an amount of income tax repaid to a company in respect of a payment received by the company in an accounting period, or interest on any such repayment,

shall be treated as an assessment to tax for that accounting period.

(6) The sum assessed shall carry interest at the prescribed rate for the purposes of section 87A of the Taxes Management Act 1970 (interest on overdue corporation tax, etc.) from the date when the payment being recovered was made until payment.

Time limit for recovery of excessive repayments, etc.

53

(1) An assessment made by virtue of paragraph 52 is not out of time under paragraph 46(1) (general 4 year time limit for assessments) if it is made—

(a) before the end of the accounting period following that in which the amount assessed was paid, or

(b) if later, before the end of the period of three months beginning with the day on which an officer of Revenue and Customs completes an enquiry into a relevant company tax return by the company concerned.

(2) Sub-paragraph (1) above is without prejudice to paragraph 46(2) and (2A) (time limit for assessment in case of loss of tax brought about carelessly or deliberately).

Part VII — General provisions as to claims and elections

Claims must be quantified

54

A claim under any provision of the Corporation Tax Acts for a relief, an allowance or a repayment of tax must be for an amount which is quantified at the time when the claim is made.

General time limit for making claims

55

Subject to any provision prescribing a longer or shorter period, a claim for relief under any provision of the Corporation Tax Acts must be made within 4 years from the end of the accounting period to which it relates.

Supplementary claim or election

56

A company which has made a claim or election under any provision of the Corporation Tax Acts (by including it in a return or otherwise) and subsequently discovers that a mistake has been made in it may make a supplementary claim or election within the time allowed for making the original claim or election.

Claims or elections affecting a single accounting period

57

(1) This paragraph applies to a claim or election for tax purposes which affects only one accounting period (“the relevant accounting period").

This is subject to sub-paragraphs (1A) to (1C).

(1A) This paragraph does not apply to a claim by a company for repayment of income tax treated as having been paid by virtue of—

(a) section 471 of the Corporation Tax Act 2010 (gifts qualifying for gift aid relief: charitable companies),

(b) section 475 of that Act (gifts qualifying for gift aid relief: eligible bodies), or

(1B) This paragraph also does not apply to a claim by a company for repayment of income tax deducted at source from income which is exempt from tax by virtue of—

(a) section 486 of the Corporation Tax Act 2010 (investment income and non-trading profits from loan relationships),

(b) section 487 of that Act (public revenue dividends),

(d) section 489 of that Act (income from estates in administration), or

(e) section 664 of that Act (interest and gift aid income: community amateur sports clubs).

(1C) This paragraph also does not apply to a claim by a company for an amount to be exempt from tax by virtue of—

(a) section 472 of the Corporation Tax Act 2010 (gifts qualifying for gift aid relief: charitable companies),

(b) section 475 of that Act (gifts qualifying for gift aid relief: eligible bodies), or

(2) If notice has been given under paragraph 3 requiring a company to deliver a company tax return for the relevant accounting period, a claim or election by the company which can be made by being included in the return (as originally made or by amendment) must be so made.

(3) If a company has delivered a company tax return for the relevant accounting period, a claim or election made by the company which could be made by amending the return is treated as an amendment of the return.

The provisions of paragraph 15 (amendment of return by company) apply.

(4) Schedule 1A to the Taxes Management Act 1970 (claims and elections not included in returns) applies to a claim or election made by a company which cannot be included in a company tax return for the relevant accounting period.

This applies in particular to a claim or election made—

(a) before any notice is given under paragraph 3 requiring a company tax return for the relevant accounting period, or

(b) at a time when its return for the relevant accounting period cannot be amended.

Claims or elections involving more than one accounting period

58

(1) This paragraph applies to a claim or election for tax purposes if—

(a) the event or occasion giving rise to it occurs in one accounting period (the period to which it “relates"), and

(b) it affects one or more other accounting periods (whether or not it also affects the period to which it relates).

(2) If a company makes a claim or election which—

(a) relates to an accounting period for which the company has delivered a company tax return and could be made by amendment of the return, or

(b) affects an accounting period for which the company has delivered a company tax return and could be given effect by amendment of the return,

the claim or election is treated as an amendment of the return.

The provisions of paragraph 15 (amendment of return by company) apply.

(3) Schedule 1A to the Taxes Management Act 1970 (claims and elections not included in returns) applies to a claim or election made by a company if or to the extent that it is not—

(a) made by being included (by amendment or otherwise) in the company tax return for the accounting period to which it relates, and

(b) given effect by being included (by amendment or otherwise) in company tax returns for the accounting periods affected by it.

Other claims and elections

59

(1) Schedule 1A to the Taxes Management Act 1970 applies to a claim or election for tax purposes which is not within paragraph 57 or 58, whether or not it is included (by amendment or otherwise) in a company tax return.

(2) The provisions of this Schedule do not apply where or to the extent that the provisions of Schedule 1A apply.

Provisions supplementary to paragraphs 57 to 59

60

(1) Paragraphs 57 to 59 have effect subject to any express provision to the contrary.

(2) Nothing in those paragraphs affects the time limit or any other conditions for making a claim or election.

(3) Where Schedule 1A to the Taxes Management Act 1970 applies by virtue of any of those paragraphs and the claim or election results in an increase in the amount of tax payable, all such adjustments by way of assessment or otherwise shall be made as are necessary to give effect to it.

Consequential claims, etc. arising out of certain Revenue amendments or assessments

61

(1) Paragraphs 62 to 64 have effect to allow certain claims, elections, applications and notices to be made or given, or if previously given to be revoked or varied, where—

(a) an amendment of a company tax return is made under paragraph 34(2A) (amendments of other returns required in consequence of partial or final closure notice) which has the effect of increasing the amount of tax payable by a company,

(b) a discovery assessment is made, or

(c) an assessment is made under paragraph 76 (recovery of excessive group relief or group relief for carried-forward losses).

(2) Paragraphs 62 to 64 do not apply in relation to an assessment made in a case involving a loss of tax brought about carelessly or deliberately by—

(a) the company, or

(b) a person acting on behalf of the company, or

In such a case more limited provision is made by paragraph 65.

(3) In paragraphs 62 to 64 “the relevant accounting period”, in relation to the time limit for making a consequential claim, election, application or notice, means—

(a) in relation to an amendment of a company tax return under paragraph 34(2A), the accounting period in which the partial or final closure notice was issued;

(b) in relation to an assessment, the accounting period in which the assessment was made.

Consequential claims etc that may be made

62

(1) A claim, election, application or notice to which this paragraph applies—

(a) may be made or given at any time within one year from the end of the relevant accounting period, or

(b) if previously made or given may at any such time be revoked or varied—

(i) in the same manner as it was made or given, and

(ii) by or with the consent of the same person or persons who made, gave or consented to it (or, if a person has died, by or with the consent of his personal representatives),

unless, by virtue of any enactment, it is irrevocable.

(1A) This paragraph applies to a claim under paragraph 51 relating to the accounting period in respect of which the amendment or assessment is made.

(2) This paragraph applies to any other claim, election, application or notice—

(a) relating to the accounting period in respect of which the amendment or assessment is made, or

(b) made or given by reference to an event occurring in that period,

whose making, giving, revocation or variation has or could have the effect of reducing a relevant liability of the company.

(3) The following are relevant liabilities of the company for this purpose—

(a) the increased liability to tax resulting from the amendment or assessment;

(b) any other liability to tax of the company—

(i) for the accounting period to which the amendment or assessment relates, or

(ii) for any subsequent accounting period ending not later than one year after the end of the relevant accounting period.

(4) Where a claim, election, application or notice is made, given, revoked or varied by virtue of this paragraph, all such adjustments shall be made, whether by way of discharge or repayment of tax or the making of amendments, assessments or otherwise, as are required to take account of the effect of the taking of that action on any person’s liability to tax for any chargeable period.

(5) The provisions of the Taxes Management Act 1970 relating to appeals against decisions on claims apply with any necessary modifications to a decision on the revocation or variation of a claim by virtue of this paragraph.

(6) This paragraph has effect subject to—

paragraph 63 (consequential claims etc. affecting tax liability of another person), and

paragraph 64 (consequential claims etc. not to give rise to reduction in liability).

Consequential claims etc. affecting tax liability of another person

63

(1) If the effect of the exercise by any person of a power conferred by paragraph 62 would be to alter the liability to tax of another person, the power may not be exercised except with the consent in writing of that other person or, if he has died, of his personal representatives.

(2) Where such a power is exercised so as to increase the liability to tax of another person, neither paragraph 61 above nor section 43A of the Taxes Management Act 1970 (which makes corresponding provision in relation to income tax or capital gains tax) applies in relation to any amendment or assessment made because of that increased liability.

(3) In this paragraph “tax” includes income tax or capital gains tax.

Consequential claims etc. not to give rise to reduction in liability

64

(1) If in any case—

(a) one or more claims, elections, applications or notices are made, given, revoked or varied under paragraph 62 in consequence of an amendment or assessment, and

(b) the total of the reductions in liability to tax resulting from that action would exceed the additional liability to tax resulting from the amendment or assessment,

the excess is not available to reduce any liability to tax.

(2) Where sub-paragraph (1) has the effect of limiting either—

(a) the reduction in a person’s liability to tax for more than one period, or

(b) the reduction in the liability to tax of more than one person,

the limited amount shall be apportioned between the periods or persons concerned.

(3) The apportionment shall be made in such manner as an officer of Revenue and Customs may specify by notice in writing to the person or persons concerned, unless notice is given under the following provision.

(4) If the person concerned gives (or the persons concerned jointly give) notice in writing to an officer of Revenue and Customs within the period of 30 days beginning with—

(a) the day on which notice under sub-paragraph (3) is given to the person concerned, or

(b) where more than one person is concerned, the latest date on which such notice is given to any of them,

the apportionment shall be made in such manner as may be specified in the notice given by the person or persons concerned.

(5) In this paragraph “tax” includes income tax or capital gains tax.

Consequential claims in case of loss of tax brought about carelessly or deliberately

65

(1) This paragraph applies where an assessment is made on a company in a case involving a loss of tax brought about carelessly or deliberately by—

(a) the company, or

(b) a person acting on behalf of the company, or

(2) If the company so requires, effect shall be given in determining the amount of the tax charged by the assessment to any relief or allowance to which the company would have been entitled for that accounting period on a claim or application made within the time allowed by the Taxes Acts.

Part VIII — Claims for group relief and group relief for carried-forward losses

Introduction

66

(1) This Part of this Schedule applies to—

(a) claims for group relief under Part 5 of the Corporation Tax Act 2010, and

(b) claims for group relief for carried-forward losses under Part 5A of that Act.

(2) In this Part of this Schedule (except where otherwise indicated)—

(a) references to “relief” are to either of those forms of relief, and

(b) references to “a claim” are to a claim for either of those forms of relief.

Claim to be included in company tax return

67

(1) A claim ... must be made by being included in the claimant company’s company tax return for the accounting period for which the claim is made.

(2) It may be included in the return originally made or by amendment.

Content of claims

68

(1) A claim ... must specify—

(a) the amount of relief claimed, and

(b) the name of the surrendering company.

(2) The amount specified must be an amount which is quantified at the time the claim is made.

(3) A claim for group relief must also state whether or not there is a company mentioned in sub-paragraph (4) that was not resident in the United Kingdom in either or both of the following periods—

(a) the accounting period of the surrendering company to which the surrender relates,

(b) the corresponding accounting period of the claimant company.

(4) Those companies are the claimant company, the surrendering company and any other company by reference to which—

(a) the claimant company and the surrendering company are members of the same group, or

(b) consortium condition 1, 2 or 3 in sections 132 and 133 of the Corporation Tax Act 2010 is satisfied in the case of the claimant company and the surrendering company.

(5) A claim for group relief for carried-forward losses made under section 188CB of the Corporation Tax Act 2010 must also state whether or not there is a company mentioned in sub-paragraph (6) that was not resident in the United Kingdom in either or both of the following periods—

(a) the accounting period of the surrendering company to which the claim relates,

(b) the corresponding accounting period of the claimant company.

(6) Those companies are the claimant company, the surrendering company and any other company by reference to which—

(a) the claimant company and the surrendering company are members of the same group,

(b) consortium condition 1 in section 188CF or consortium condition 2 in section 188CG of the Corporation Tax Act 2010 is satisfied in the case of the claimant company and the surrendering company.

(7) A claim for group relief for carried forward-losses made under section 188CC of the Corporation Tax Act 2010 must also state whether or not there is a company mentioned in sub-paragraph (8) that was not resident in the United Kingdom in any or all of the following periods—

(a) the specified loss-making period of the surrendering company,

(b) the accounting period of the surrendering company to which the surrender relates,

(8) Those companies are the claimant company, the surrendering company and any other company by reference to which consortium condition 3 in section 188CH or consortium condition 4 in section 188CI is satisfied in the case of the claimant company and the surrendering company.

Claims for more or less than the amount available for surrender

69

(1) A claim ... may be made for less than the amount available for surrender at the time the claim is made.

(2) A claim is ineffective if the amount claimed exceeds the amount available for surrender at the time the claim is made.

(3) For these purposes the amount available for surrender at any time is calculated as follows.

First step

Determine the total amount available for surrender under Part 5 or (as the case may be) Part 5A of the Corporation Tax Act 2010—on the basis of the information in the company’s company tax return, anddisregarding any amendments whose effect is deferred under paragraph 31(3).

Second step

Then deduct the total of all amounts for which notices of consent have been given by the company and not withdrawn.

(4) Where one or more claims are withdrawn on the same day as one or more claims are made, the withdrawals are given effect first.

(5) Where more than one claim is made on the same day, and the claims together take the amount claimed over the limit of what is available for surrender, an officer of Revenue and Customs may determine which of the claims is to be ineffective.

(6) The power under sub-paragraph (5) shall not be exercised to any greater extent than is necessary to bring the total amount claimed within the amount available for surrender.

70

(1) In accordance with Requirement 1 in section 130(2), 135(2), 188CB(3) or (as the case may be) 188CC(3) of the Corporation Tax Act 2010, a claim requires the consent of the surrendering company.

(2) A consortium claim also requires the consent of each member of the consortium.

(3) The necessary consent or consents must be given—

(a) by notice in writing,

(b) to the officer of the Board to whom the surrendering company makes its company tax returns,

Otherwise the claim is ineffective.

(4) A claim ... is ineffective unless it is accompanied by a copy of the notice of consent to surrender given by the surrendering company.

(5) A consortium claim is ineffective unless it is also accompanied by a copy of the notice of consent to surrender given by each member of the consortium.

(6) In this paragraph “consortium claim” means—

(a) a claim for group relief under Part 5 of the Corporation Tax Act 2010 based on consortium condition 1, 2 or 3 (see Requirement 3 in section 130(2) of that Act),

(b) a claim for group relief for carried-forward losses under section 188CB of that Act based on consortium condition 1 or 2 (see Requirement 3 in that section), and

(c) a claim for group relief for carried-forward losses under section 188CC of that Act based on consortium condition 3 or 4 (see Requirement 3 in that section).

71

(1) Notice of consent by the surrendering company must contain all the following details—

(a) the name of the surrendering company;

(b) the name of the company to which relief is being surrendered;

(d) the accounting period of the surrendering company to which the surrender relates;

(e) the tax district references of the surrendering company and the company to which relief is being surrendered.

Otherwise the notice is ineffective.

(1A) Notice of consent given in respect of a claim for carried-forward losses made under section 188CC of the Corporation Tax Act 2010 must also state which accounting period of the surrendering company is the specified loss-making period.

Otherwise the notice is ineffective.

(2) Notice of consent may not be amended, but it may be withdrawn and replaced by another notice of consent.

(3) Notice of consent may be withdrawn by notice to the officer of the Board to whom the notice of consent was given.

(4) Except where the consent is withdrawn under paragraph 75 (withdrawal in consequence of reduction of amount available for surrender), the notice of withdrawal must be accompanied by a notice signifying the consent of the claimant company to the withdrawal.

Otherwise the notice is ineffective.

(5) The claimant company must, so far as it may do so, amend its company tax return for the accounting period for which the claim was made so as to reflect the withdrawal of consent.

71A

(1) Where notice of consent by the surrendering company is given in respect of a claim for carried-forward losses, the notice must comply with the additional requirements in this paragraph.

Otherwise the notice is ineffective.

(2) The notice must identify the particular losses and other amounts carried forward to the surrender period that are to be treated as surrendered in satisfaction of the claim.

(3) The notice must identify a loss or other amount by specifying—

(a) the provision of the Corporation Tax Act 2009 or the Corporation Tax Act 2010 under which it was carried forward to the surrender period, and

(b) in a case where the surrendering company is owned by a consortium, the accounting period of the surrendering company to which the loss or other amount is attributable.

(4) Section 153 of the Corporation Tax Act 2010 (companies owned by consortiums) applies for the purposes of this paragraph.

72

(1) Where notice of consent by the surrendering company relates to a loss or other amount in respect of which corporation tax relief has been given to the company for any accounting period, the company must at the same time amend its company tax return for that accounting period so as to reflect the notice of consent.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The time limits otherwise applicable to amendment of a company tax return do not prevent an amendment being made under sub-paragraph (1) ... .

(4) If the surrendering company fails to comply with sub-paragraph (1) ... , the notice of consent is ineffective.

Withdrawal or amendment of claim

73

(1) A claim ... may be withdrawn by the claimant company only by amending its company tax return.

(2) A claim ... may not be amended, but must be withdrawn and replaced by another claim.

Time limit for claims

74

(1) A claim ... may be made or withdrawn at any time up to whichever is the last of the following dates—

(a) the first anniversary of the filing date for the company tax return of the claimant company for the accounting period for which the claim is made;

(b) if notice of enquiry is given into that return, 30 days after the enquiry is completed;

(c) if after such an enquiry an officer of Revenue and Customs amends the return under paragraph 34(2), 30 days after notice of the amendment is issued;

(d) if an appeal is brought against such an amendment, 30 days after the date on which the appeal is finally determined.

(2) A claim ... may be made or withdrawn at a later time if an officer of Revenue and Customs allows it.

(3) The time limits otherwise applicable to amendment of a company tax return do not apply to an amendment to the extent that it makes or withdraws a claim ... within the time allowed by or under this paragraph.

(4) The references in sub-paragraph (1) to an enquiry into a company tax return do not include an enquiry restricted to a previous amendment making or withdrawing a claim ... .

An enquiry is so restricted if—

(a) the scope of the enquiry is limited as mentioned in paragraph 25(2), and

(b) the amendment giving rise to the enquiry consisted of the making or withdrawing of a claim ... .

Reduction in amount available for surrender

75

(1) This paragraph applies if, after the surrendering company has given one or more notices of consent to surrender, the total amount available for surrender is reduced to less than the amount stated in the notice, or the total of the amounts stated in the notices, as being surrendered.

(2) The company must within 30 days withdraw the notice of consent, or as many of the notices as is necessary to bring the total amount surrendered within the new total amount available for surrender, and may give one or more new notices of consent.

(3) The company must give notice in writing of the withdrawal of consent, and send a copy of any new notice of consent—

(a) to each of the companies affected, and

(b) to an officer of Revenue and Customs.

(4) If the surrendering company fails to act in accordance with sub-paragraph (2), an officer of Revenue and Customs may by notice to the surrendering company give such directions as he thinks fit as to which notice or notices are to be ineffective or are to have effect in a lesser amount.

This power shall not be exercised to any greater extent than is necessary to secure that the total amount stated in the notice or notices is consistent with the total amount available for surrender.

(5) An officer of Revenue and Customs must at the same time send a copy of the notice to the claimant company, or each claimant company, affected by his action.

(6) A claimant company which receives—

(a) notice of the withdrawal of consent, or a copy of a new notice of consent, under sub-paragraph (3), or

(b) a copy of a notice containing directions by an officer of Revenue and Customs under sub-paragraph (4),

must, so far as it may do so, amend its company tax return for the accounting period for which the claim is made so that it is consistent with the new position with regard to consent to surrender.

(7) An appeal may be brought by the surrendering company against any directions given by an officer of Revenue and Customs under sub-paragraph (4).

(8) Notice of appeal must be given—

(a) in writing,

(b) within 30 days after the notice containing the directions was issued,

Assessment on other claimant companies

75A

(1) This paragraph applies where, after the surrendering company has given notice of consent to surrender, a claimant company (“the chargeable company”) has become liable to tax in consequence of receiving—

(a) notice of the withdrawal of consent, or a copy of a new notice of consent, under paragraph 75(3), or

(b) a copy of a notice containing directions by an officer of Revenue and Customs under paragraph 75(4).

(2) If any of the tax is unpaid six months after the chargeable company’s time limit for claims, an officer of Revenue and Customs may make an assessment to tax in the name of the chargeable company on any other company that has obtained ... relief as a result of the surrender.

(3) The assessment may not be made more than two years after that time limit.

(4) The amount of the assessment must not exceed—

(a) the amount of the unpaid tax, or

(b) if less, the amount of tax which the other company saves by virtue of the surrender.

(5) A company assessed to an amount of tax under sub-paragraph (2) is entitled to recover from the chargeable company—

(a) a sum equal to that amount, and

(b) any interest on that amount which it has paid under section 87A of the Taxes Management Act 1970 (interest on unpaid corporation tax).

(6) For the purposes of this paragraph the chargeable company’s time limit for claims is the last of the dates mentioned in paragraph 74(1) on which the chargeable company could make or withdraw a claim ... for the accounting period for which the claim in question is made.

Assessment to recover excessive ... relief

76

(1) If an officer of Revenue and Customs discovers that any ... relief which has been given is or has become excessive, he may make an assessment to tax in the amount which in his opinion ought to be charged.

(2) This power is without prejudice to—

(a) the power to make a discovery assessment under paragraph 41(1);

(b) the making of all such adjustments by way of discharge or repayment of tax or otherwise as may be required where a claimant company has obtained too much relief, or a surrendering company has forgone relief in respect of a corresponding amount.

(3) If an assessment under this paragraph is made because a claimant company fails, or is unable, to amend its company tax return under paragraph 75(6), the assessment is not out of time if it is made within one year from—

(a) the date on which the surrendering company gives notice of the withdrawal of consent, or (if later) sends a copy of a new notice of consent, to the claimant company under paragraph 75(3), or

(b) the date on which an officer of Revenue and Customs sends the claimant company a copy of a notice containing his directions under paragraph 75(4).

Joint amended returns

77

(1) The Treasury may by regulations make provision for arrangements under which—

(a) a claim ... may be made without being accompanied by a copy of the notice of consent to surrender given by the surrendering company , provided authority for the claim being so made is given by a company which is authorised in relation to the claimant company as mentioned in paragraph (b), and

(b) one company may be authorised to act on behalf of two or more companies in the same group in amending their company tax returns for the purpose of claiming or surrendering ... relief or revising the amounts of ... relief claimed or surrendered by them.

(2) Regulations under this paragraph may add to, exclude or modify the operation of any provisions of this Part of this Schedule to such extent as the Treasury think necessary or expedient for the purpose of, or in connection with, such arrangements.

(3) Provision may in particular be made—

(a) altering the conditions for making and withdrawing claims ... , and

(b) giving an officer of Revenue and Customs power to recover from the authorised company or another company in the group any amount which might be recovered from the claimant company by an assessment under paragraph 76.

Claims in respect of overseas losses of non-resident companies

77A

(1) This paragraph applies if a claim for group relief is made in respect of any loss or other amount as a result of the condition in section 136 of the Corporation Tax Act 2010 being met (claims for group relief based on the EEA group condition).

(2) In relation to the surrendering company, this Part of this Schedule applies as if—

(a) references to the relief being surrendered were to the EEA amount and to the relief being claimed, and

(b) references to its accounting period were to the accounting period that the company is assumed to have under section 125 of the Corporation Tax Act 2010 for the purpose of recalculating the EEA amount at Step 3 in section 113 of that Act.

(3) Notice of consent of the surrendering company—

(a) is to be given to the officer of the Board under paragraph 70(3)(b) by the claimant company (and not by the surrendering company), and

(b) is to be given to the officer to whom the claimant company makes its company tax returns.

(4) If the surrendering company is not within the charge to income or corporation tax, the requirement under paragraph 71(1)(e) for notice of consent by the surrendering company to contain details of its tax district reference is not to apply.

(5) If notice of consent is withdrawn under paragraph 71, the notice of the withdrawal is to be given to the officer of the Board by the claimant company (and not by the surrendering company).

(6) If notice of consent is withdrawn under paragraph 75—

(a) the notice of withdrawal, and any copy of any new notice of consent, is to be sent to an officer of Revenue and Customs by the claimant company (and not by the surrendering company), and

(b) any notice containing directions by an officer of Revenue and Customs under sub-paragraph (4) of that paragraph is to be given to the claimant company (and not to the surrendering company).

(7) The remaining provisions of that paragraph, and the rest of this Part of this Schedule, are, accordingly, to be read with the appropriate modifications (so that, in particular, it is the claimant company (and not the surrendering company) which can bring an appeal under paragraph 75(7)).

(8) A notice under paragraph 1 of Schedule 36 to the Finance Act 2008 (notice to taxpayer to produce documents etc) given to the claimant company may require the claimant company—

(a) to explain why the EEA amount meets the conditions mentioned in Step 2 in section 113(2) of the Corporation Tax Act 2010 and is not prevented from being surrendered by section 127 of that Act, and

(b) to provide details of the recalculation required under Step 3 in section 113(2) of that Act in relation to the EEA amount.

(9) Except where expressly indicated, requirements imposed under this paragraph are in addition to those imposed apart from this paragraph.

(10) In this paragraph “the EEA amount” has the same meaning as in Chapter 3 of Part 5 of the Corporation Tax Act 2010.

PART 8A — Claims for allocation of surplus dual inclusion income

Introduction

77B

(1) This Part of this Schedule applies to allocation claims under Chapter 12A of Part 6A of TIOPA 2010 (hybrid and other mismatches: allocation of dual inclusion income within group).

(2) Expressions used in this Part of this Schedule and in that Chapter have the same meaning in this Part of this Schedule as they have in that Chapter.

Claims to be included in company tax return

77C

(1) An allocation claim must be made by being included in the company tax return of the claimant company (“company B”) for the shortfall period.

(2) It may be included in the return originally made or by amendment.

77D

(1) In accordance with Requirement 1 in section 259ZMB of TIOPA 2010, an allocation claim in respect of all or part of the DII surplus of a company (“company A”) requires the company's consent.

(2) The necessary consent must be given—

(a) by notice in writing,

(b) to an officer of Revenue and Customs,

Otherwise the allocation claim is ineffective.

(3) An allocation claim by company B is ineffective unless it is accompanied by a copy of the notice of consent to the allocation claim given by company A.

77E

(1) Notice of consent to an allocation claim given by company A must contain all the following details—

(a) the name of company A;

(b) the name of company B;

(d) the accounting period of company A which is the surplus period.

(2) Notice of consent may not be amended, but it may be withdrawn and replaced by another notice of consent.

(3) Notice of consent may be withdrawn by notice to an officer of Revenue and Customs.

(4) Except where the consent is withdrawn under paragraph 77I (withdrawal in consequence of reduction of DII surplus), the notice of withdrawal must be accompanied by a notice signifying the consent of company B to the withdrawal.

Otherwise the notice of withdrawal is ineffective.

(5) Company B must, so far as it may do so, amend its company tax return for the accounting period for which the allocation claim was made so as to reflect the withdrawal of consent.

77F

(1) Where company A gives notice of consent to an allocation claim in respect of all or part of an accounting period after filing its company tax return for the accounting period, company A must amend its company tax return for the accounting period so as to reflect the notice of consent.

(2) The time limits otherwise applicable to amendment of a company tax return do not prevent an amendment being made under sub-paragraph (1).

(3) If company A fails to comply with sub-paragraph (1), the notice of consent is ineffective.

Withdrawal or amendment of allocation claim

77G

(1) An allocation claim may be withdrawn by company B only by amending its company tax return.

(2) An allocation claim may not be amended, but must be withdrawn and replaced by another allocation claim.

Time limit for allocation claims

77H

(1) An allocation claim may be made or withdrawn at any time up to whichever is the last of the following dates—

(a) the first anniversary of the filing date for the company tax return of company B for the accounting period for which the claim is made;

(b) if notice of enquiry is given into that return, 30 days after the enquiry is completed;

(c) if after such an enquiry an officer of Revenue and Customs amends the return under paragraph 34(2), 30 days after notice of the amendment is issued;

(d) if an appeal is brought against such an amendment, 30 days after the date on which the appeal is finally determined.

(2) An allocation claim may be made or withdrawn at a later time if an officer of Revenue and Customs allows it.

(3) The time limits otherwise applicable to amendment of a company tax return do not apply to an amendment to the extent that it makes or withdraws an allocation claim within the time allowed by or under this paragraph,

(4) The references in sub-paragraph (1) to an enquiry into a company tax return do not include an enquiry restricted to a previous amendment making or withdrawing a claim.

(5) An enquiry is so restricted if—

(a) the scope of the enquiry is limited as mentioned in paragraph 25(2), and

(b) the amendment giving rise to the enquiry consisted of the making or withdrawing of an allocation claim.

Reduction in DII surplus

77I

(1) This paragraph applies if, after company A has given one or more notices of consent to an allocation claim or claims, the unused part of the DII surplus of company A is reduced to less than the amount stated in the notice of consent, or the total of the amounts stated in the notices of consent.

(2) Company A must within 30 days withdraw the notice of consent, or as many of the notices of consent as is necessary to bring the total amount of the DII surplus to which the claim or claims relate within the new unused part of the DII surplus of company A.

(3) Company A may give one or more new notices of consent.

(4) Company A must give notice in writing of the withdrawal of consent, and send a copy of any new notice of consent—

(a) to each of the companies affected, and

(b) to an officer of Revenue and Customs.

(5) If company A fails to act in accordance with sub-paragraph (2), an officer of Revenue and Customs may by notice to company A give such directions as the officer thinks fit as to which notice or notices are to be ineffective or are to have effect in a lesser amount.

(6) The power in sub-paragraph (5) must not be exercised to any greater extent than is necessary to secure that the total amount stated in the notice or notices is consistent with the unused part of the DII surplus of company A.

(7) An officer of Revenue and Customs must at the same time send a copy of the notice to each company affected by the exercise of the power.

(8) A company which receives—

(a) notice of the withdrawal of consent, or a copy of a new notice of consent, under sub-paragraph (4), or

(b) a copy of a notice containing directions by an officer of Revenue and Customs under sub-paragraph (7),

must, so far as it may do so, amend its company tax return for the accounting period for which the claim is made so that it is consistent with the new position with regard to consent to an allocation claim.

(9) An appeal may be brought by company A against any directions given by an officer of Revenue and Customs under sub-paragraph (5).

(10) Notice of appeal must be given—

(a) in writing,

(b) within 30 days after the notice containing the directions was issued, and

Assessments on other companies

77J

(1) This paragraph applies where, after company A has given notice of consent to an allocation claim, company B has become liable to tax in consequence of receiving—

(a) notice of the withdrawal of consent, or a copy of a new notice of consent, under paragraph 77I(4), or

(b) a copy of a notice containing directions by an officer of Revenue and Customs under paragraph 77I(7).

(2) If any of the tax is unpaid 6 months after company B's time limit for allocation claims, an officer of Revenue and Customs may make an assessment to tax in the name of company B on any other company that has benefited as a result of the consent given by company A.

(3) The assessment may not be made more than two years after that time limit.

(4) The amount of the assessment must not exceed—

(a) the amount of the unpaid tax, or

(b) if less, the amount of tax which the other company saves by virtue of the consent.

(5) A company assessed to an amount of tax under sub-paragraph (2) is entitled to recover from company B—

(a) a sum equal to that amount, and

(b) any interest on that amount which it has paid under section 87A of the Taxes Management Act 1970 (interest on unpaid corporation tax).

(6) For the purposes of this paragraph, company B's time limit for allocation claims is the last of the dates mentioned in paragraph 77H(1) on which company B could make or withdraw an allocation claim for the accounting period for which the claim in question is made.

Assessment to recover excessive amount claimed

77K

(1) If an officer of Revenue and Customs discovers that any amount which is the subject of an allocation claim is or has become excessive, the officer may make an assessment to tax in the amount which in the officer's opinion ought to be charged.

(2) This power is without prejudice to—

(a) the power to make a discovery assessment under paragraph 41(1);

(b) the making of all such adjustments by way of discharge or repayment of tax or otherwise as may be required where an amount claimed by company B on an allocation claim is excessive or company A has given consent to an allocation claim in respect of a corresponding amount.

(3) If an assessment under this paragraph is made because company B fails, or is unable, to amend its company tax return under paragraph 77I(8), the assessment is not out of time if it is made within one year from—

(a) the date on which company A gives notice of the withdrawal of consent, or (if later) sends a copy of a new notice of consent, to company B under paragraph 77I(4), or

(b) the date on which an officer of Revenue and Customs sends company B a copy of a notice containing the officer's direction under paragraph 77I(7).

Joint amended returns

77L

(1) The Treasury may by regulations make provision for arrangements under which—

(a) an allocation claim may be made without being accompanied by a copy of the notice of consent to the claim given by company A, provided authority for the claim being so made is given by a company which is authorised in relation to company B as mentioned in paragraph (b), and

(b) one company may be authorised to act on behalf of two or more companies in the same group in amending their company tax returns for the purpose of making an allocation claim or giving consent to an allocation claim or revising the amount to which an allocation claim or consent relates.

(2) Regulations under this paragraph may add to, exclude or modify the operation of any provisions of this Part of this Schedule to such extent as the Treasury think necessary or expedient for the purpose of, or in connection with, such arrangements.

(3) Provision may in particular be made—

(a) altering the conditions for making and withdrawing allocation claims, and

(b) giving an officer of revenue and Customs power to recover from the authorised company or another company in the group any amount which might be recovered from company B by an assessment under paragraph 77K.

Part IX — Claims for capital allowances

Introduction

78

This Part of this Schedule applies to claims for allowances under the Capital Allowances Act which—

(a) are made for corporation tax purposes, and

(b) are required under section 3 of that Act to be included in a tax return.

Claim to be included in company tax return

79

(1) A claim for capital allowances must be included in the claimant company’s company tax return for the accounting period for which the claim is made.

(2) It may be included in the return originally made or by amendment.

Content of claims

80

A claim for capital allowances must specify the amount claimed, which must be an amount which is quantified at the time the claim is made.

Amendment or withdrawal of claim

81

A claim for capital allowances may be amended or withdrawn by the claimant company only by amending its company tax return.

Time limit for claims

82

(1) A claim for capital allowances may be made, amended or withdrawn at any time up to whichever is the last of the following dates—

(a) the first anniversary of the filing date for the company tax return of the claimant company for the accounting period for which the claim is made;

(b) if notice of enquiry is given into that return, 30 days after the enquiry is completed;

(c) if after such an enquiry an officer of Revenue and Customs amends the return under paragraph 34(2), 30 days after notice of the amendment is issued;

(d) if an appeal is brought against such an amendment, 30 days after the date on which the appeal is finally determined.

(2) A claim for capital allowances may be made, amended or withdrawn at a later time if an officer of Revenue and Customs allows it.

(3) The time limits otherwise applicable to amendment of a company tax return do not apply to an amendment to the extent that it makes, amends or withdraws a claim for capital allowances within the time allowed by or under this paragraph.

(4) The references in sub-paragraph (1) to an enquiry into a company tax return do not include an enquiry restricted to a previous amendment making, amending or withdrawing a claim for capital allowances.

An enquiry is so restricted if—

(a) the scope of the enquiry is limited as mentioned in paragraph 25(2), and

(b) the amendment giving rise to the enquiry consisted of the making, amending or withdrawing of a claim for capital allowances.

Consequential amendment of return for another accounting period

83

(1) This paragraph applies if the effect of a claim for capital allowances is to reduce the amount available by way of capital allowances for another accounting period of the company for which a company tax return has been delivered.

(2) The company has 30 days within which to make any necessary amendments of the company tax return for that other period.

(3) If it does not do so, an officer of Revenue and Customs may by notice in writing to the company amend the return to make it consistent with the amount available by way of capital allowances.

(4) The time limits otherwise applicable to amendment of a company tax return do not prevent an amendment being made under sub-paragraph (2) or (3).

(5) An appeal may be brought by the company against any such amendment.

(6) Notice of appeal must be given—

(a) in writing,

(b) within 30 days after notice of the amendment was issued,

83ZA

(1) Subject as follows, this Part of this Schedule applies to claims for a first-year tax credit under Schedule A1 to the Capital Allowances Act as it applies to claims for allowances under that Act.

(2) A company tax return in which a claim to a first-year tax credit is made must specify—

(a) the plant or machinery to which the relevant first-year expenditure relates,

(b) the amount of the relevant first-year expenditure incurred in respect of that plant or machinery, and

(3) Where an order under section 45B or 45I of that Act (first-year allowance available only if relevant certificate in force) applies in relation to the plant or machinery, the company tax return must be accompanied by the relevant certificate.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IXA — Claims for R&D expenditure credits or R&D tax relief

Introduction

83A

This Part of this Schedule applies to claims for relief under Part 13 of the Corporation Tax Act 2009 (relief for research and development).

Claim to be included in company tax return

83B

(1) A claim to which this Part of this Schedule applies must be made by being included in the claimant company’s company tax return for the accounting period for which the claim is made.

(2) It may be included in the return originally made or by amendment.

Content of claim

83C

A claim to which this Part of this Schedule applies must specify the amount of the credit or relief claimed, which must be an amount quantified at the time the claim is made.

Amendment or withdrawal of claim

83D

A claim to which this Part of this Schedule applies may be amended or withdrawn by the claimant company only by amending its company tax return.

Time limit for claims

83E

(1) Except where sub-paragraph (3) applies, a claim to which this Part of this Schedule applies may be made, amended or withdrawn at any time up to the last day of the period of—

(a) two years beginning with the last day of the period of account, in a case where the period of account to which the claim relates is not longer than 18 months, or

(b) 42 months beginning with the first day of the period of account, in any other case.

(2) Sub-paragraph (3) applies where—

(a) a company makes a claim for R&D tax relief under Chapter 2 of Part 13 of the Corporation Tax Act 2009,

(b) the company is not entitled to the relief, and

(c) an officer of Revenue and Customs exercises the power under paragraph 34(2)(b) or (2A) to make an amendment by removing the claim from the company tax return in which it is made.

(3) The company may make, amend or withdraw a claim for R&D expenditure credit under Chapter 1A of Part 13 of the Corporation Tax Act 2009 in respect of eligible expenditure at any time up to whichever is the last of the following dates—

(a) 30 days after notice of the amendment mentioned in sub-paragraph (2)(c) is issued;

(b) if an appeal is brought against that amendment, 30 days after the date on which the appeal is finally determined.

(4) In this paragraph “eligible expenditure” means expenditure—

(a) to which the claim mentioned in sub-paragraph (2)(a) relates, and

(b) in respect of which the company is entitled to R&D expenditure credit.

(5) A claim to which this Part of this Schedule applies may be made, amended or withdrawn after the end of the period mentioned in sub-paragraph (1) or (3) (as the case may be) if an officer of Revenue and Customs allows it.

Additional information to be provided in relation to claim

83EA

(1) A claim to which this Part of this Schedule applies is invalid unless the claimant company has provided information to an officer of Revenue and Customs in accordance with regulations under sub-paragraph (2) not later than the date on which the claim is made or amended by the company in accordance with paragraph 83E.

(2) The Commissioners for Revenue and Customs may by regulations specify, in relation to a claim to which this Part of this Schedule applies—

(a) information to be provided by the claimant company;

(b) the form and manner in which the information is to be provided.

Removal from return of claims made in error

83EB

(1) This paragraph applies, in relation to a claim to which this Part of this Schedule applies (the “original claim”), where an officer of Revenue and Customs—

(a) reasonably believes that a claimant company has failed to comply with a requirement relating to the making of the claim (and accordingly that the claim has been made in error), and

(b) exercises the power under paragraph 16(1) to make a correction by removing the claim from the company tax return in which it is made.

(2) Sub-paragraphs (4) and (5) of paragraph 16 do not apply in relation to the correction (and accordingly the claimant company may not reject the correction).

(3) The claimant company may, within 90 days beginning with the date of the notice issued under paragraph 16(3), send written representations to an officer of Revenue and Customs objecting to the notice on the grounds that a matter stated in the notice was incorrect.

(4) An officer of Revenue and Customs must consider any representations made under sub-paragraph (3).

(5) Having considered the representations, the officer must determine whether to—

(a) confirm the notice, or

(b) withdraw the notice,

and must notify the claimant company accordingly.

(6) Nothing in sub-paragraph (2) prevents the claimant company from amending its company tax return to make a new claim to which this Part of this Schedule would apply in respect of the expenditure to which the original claim related (but see sub-paragraph (7)).

(7) Where, in relation to the original claim—

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.

This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence. legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.

Finance Act 1998

Loss of tax brought about carelessly or deliberately

43

Situation not disclosed by return or related documents etc.

44

Return made in accordance with prevailing practice

45

General time limits for assessments

46

Assessment procedure

47

Appeal against assessment

48

Application of provisions to discovery determinations

49

Transfer pricing records: carelessness

49A

Part VI — Overpaid tax, excessive assessments or repayments, etc

Relief in case of double assessment

50

Claim for relief for overpaid tax etc

51

Cases in which Commissioners not liable to give effect to a claim

51A

Making a claim

51B

Determinations under paragraphs 36 and 37: special rules

51BA

The claimant: one person accountable for amounts payable by another

51C

The claimant: partnerships

51D

Assessment of claimant in connection with claim

51E

Amendment of partnership return etc in connection with claim

51F

Contract settlements

51G

Recovery of excessive repayments etc

52

Time limit for recovery of excessive repayments, etc.

53

Part VII — General provisions as to claims and elections

Claims must be quantified

54

General time limit for making claims

55

Supplementary claim or election

56

Claims or elections affecting a single accounting period

57

Claims or elections involving more than one accounting period

58

Other claims and elections

59

Provisions supplementary to paragraphs 57 to 59

60

Consequential claims, etc. arising out of certain Revenue amendments or assessments

61

Consequential claims etc that may be made

62

Consequential claims etc. affecting tax liability of another person

63

Consequential claims etc. not to give rise to reduction in liability

64

Consequential claims in case of loss of tax brought about carelessly or deliberately

65

Part VIII — Claims for group relief and group relief for carried-forward losses

Introduction

66

Claim to be included in company tax return

67

Content of claims

68

Claims for more or less than the amount available for surrender

69

Consent to surrender

70

Notice of consent

71