(1)Every company which is chargeable to corporation tax for any accounting period and has neither—
(a)made a return of its profits for that period, nor
(b)received a notice under section 11 of this Act requiring such a return,
shall, within twelve months from the end of that period, give notice to the inspector that it is so chargeable.
(2)If any company, for any accounting period ending on or before the appointed day, fails to comply with subsection (1) above, it shall be liable to a penalty not exceeding the amount of the corporation tax for which it is liable, in respect of its profits for that period, under assessments made more than twelve months after the end of that period.
(3)If any company, for any accounting period ending after the appointed day, fails to comply with subsection (1) above, it shall be liable to a penalty not exceeding the amount by which so much of the corporation tax chargeable on its profits for that period as remains unpaid for twelve months after the end of that period exceeds any income tax borne by deduction from payments included in those profits.
(4)In determining—
(a)for the purposes of subsection (2) above, for how much corporation tax a company is liable, in respect of its profits for an accounting period, under assessments made more than twelve months after the end of that period; or
(b)for the purposes of subsection (3) above, how much of the corporation tax chargeable on the profits of a company for an accounting period remained unpaid at the time of any failure to comply with subsection (1) above,
no account shall be taken of the discharge of any liablility for that tax which, pursuant to a claim under subsection (3) of section 239 of the principal Act, is attributable to an amount of surplus advance corporation tax, as defined in that subsection.
(5)In this section “the appointed day” means the day appointed for the purposes of section 8(3) of the principal Act F1.]
Textual Amendments
F1Finance Act 1980 (c. 39 SIF 63:1,2) s. 121in respect of notices given for accounting periods ending after 31March 1989.Previously
“10.—(1) Every company which is chargeable to corporation tax for any accounting period and which has not made a return of its profits for that accounting period give notice to the inspector that it is so chargeable.(2) If a company fails to give a notice which it is required to give under this section the company shall be liable to a penalty not exceeding £100”.
(1)A company may be required by a notice served on the company by an inspector or other officer of the Board to deliver to the officer within the time limited by the notice a return of the profits of the company computed in accordance with the Corporation Tax Acts—
(a)specifying the income taken into account in computing those profits, with the amount from each source,
(b)giving particulars of all disposals giving rise to chargeable gains or allowable losses under the provisions of [F2the [F31992 Act]] and the Corporation Tax Acts and particulars of those chargeable gains or allowable losses, and
(c)giving particulars of all charges on income to be deducted against those profits for the purpose of assessment to corporation tax F4F5.
(2)A notice under this section may require a return of profits arising in any period during which the company was within the charge to corporation tax F5.
(3)Every return under this section shall include a declaration [by the person making the return F6] to the effect that the return is [to the best of his knowledge F6] correct and complete F5.
(4)A return under this section which includes profits which are payments on which the company has borne income tax by deduction shall specify the amount of income tax so borne.
(5)A notice under this section may require the inclusion in the return of particulars of management expenses, capital allowances and balancing charges which have been taken into account in arriving at the profits included in the return.
[(6)A notice under this section may require the inclusion in the return of particulars of advance corporation tax paid by the company (and not repaid) and of any surplus advance corporation tax carried forward under section [239(4) of the principal Act F7] F8.] F5F9
Textual Amendments
F3Words in s. 11(1)(b) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(2) (with ss. 60, 101(1), 171, 201(3))
F4 See Income and Corporation Taxes Act 1988 s. 451(2)(a)—the Treasury may modify s. 11 in its application to Lloyd's underwriting agency companies by regulations made by statutory instrument for accounting periods ending after a day to be appointed.
F5 See—Finance (No. 2) Act 1987 ss. 82(2)(3)(4), 95(2)(3), Income and Corporation Taxes Act 1988 Sch. 29 para. 10(1)and Finance Act 1990 s. 91for modifications in the event of a notice being served after a day to be appointed.
F6Finance Act 1990 s. 91(4), (8)with respect to any notice served on or after 26July 1990.
F7Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 10.Previously
“85(4) of the Finance Act 1972”.
F8Finance Act 1972 s.111andSch.24 para.5with effect from6April1973.
F9 See—Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1)—s. 10(2)—time for payment of tax under Pay and File.Finance Act 1990—ss. 100and 102and Schs. 15and 16—claims for group relief and claims for capital allowances after a day to be appointed (see Income and Corporation Taxes Act 1988 s. 10).
(1)Every person who is chargeable to capital gains tax for any year of assessment and has neither—
(a)delivered a return of his chargeable gains for that year, nor
(b)received a notice under section 8 of this Act requiring such a return,
shall, within twelve months from the end of that year, give notice to the inspector that he is so chargeable; but a person all of whose chargeable gains for a year of assessment have been assessed shall not be required to give notice under this subsection in respect of that year.
(2)If any person, for any year of assessment, fails to comply with subsection (1) above, he shall be liable to a penalty not exceeding the amount of the tax for which he is liable, in respect of his chargeable gains for that year, under assessments made more than twelve months after the end of that year.
(3)In this section references to a person’s chargeable gains for a year of assessment include, if section 45(1)of the Capital Gains Tax Act 1979applies in relation to him and his wife in that year, her chargeable gains for that yearF10.] F11
Textual Amendments
F10S. 11A inserted (with effect with respect to notices required to be given for the year 1988-89 and subsequent years) by Finance Act 1988 (c. 39), s. 122(1)(3)
F11S. 11A(3) repealed (for 1990-91 and subsequent years) by Finance Act 1988 (c. 39), s. 148, Sch. 14 Pt. VIII
[(1)[Sections 8 and 8A F12] of this Act shall apply in relation to capital gains tax as [they apply F12] in relation to income tax, and subject to any necessary modifications F13.] F14
(2)A notice under section 8 [or section 8A F15] or section 11 of this Act may require particulars of any assets acquired by the person on whom the notice was served (or if the notice relates to income or chargeable gains of some other person, of any assets acquired by that other person) in the period specified in the notice (being a period beginning not earlier than 6th April 1965) but excluding—
[(a)any assets exempted by the following provisions of the [F161992 Act], namely—
(i)section [F1751(1)] (rights to winnings from pool betting, lotteries or games with prizes),
(ii)section [F18121] (government non-marketable securities),
(iii)section [F19263, 268 or 269] (passenger vehicles, decorations for valour or gallant conduct and foreign currency for personal expenditure) F20], or
(b)unless the amount or value of the consideration for its acquisition exceeded [£6,000 F21], any asset which is tangible movable property and is not within the exceptions in [F20section [F22262(6)] ]of the said Act (terminal markets and currency), or
(c)any assets acquired as trading stock.
M1(3)The particulars required under this section may include particulars of the person from whom the asset was acquired, and of the consideration for the acquisition.
M2(4)A return ofincome of a partnership F23 under section 9of this Act shall include—
(a)with respect to any disposal of partnership property during a period to which any part of the return relates, the like particulars as if the partnership were liable to tax on any chargeable gain accruing on the disposal, and
(b)with respect to any acquisition of partnership property, the particulars required under subsection (2) above.
M3(5)In this section “trading stock” has the meaning given by section [100(2) F24] of the principal Act. F25
Textual Amendments
F12Finance Act 1990 s. 90(2)(a), (5)where a notice to deliver a return was, or falls to be given after 5April 1990.Previously
“Section 8”
and
“it applies”.
F13Finance Act 1988 (c. 39, SIF 63:1,2) s. 122with respect to notices required to be given for the year 1988-89and subsequent years. Previously
“(1) Sections 7 and 8 of this Act shall apply in relation to capital gains tax as they apply in relation to income tax.....(a) and subject to any necessary modifications.”
in s. 12(1).
(a)
Words omitted repealed for 1973-74et seq. by Finance Act 1971 ss.37and 38and Sch. 14 Part II.
F14 See—Capital Gains Tax Act 1979 (c. 14, SIF 63:2) s.5(5)andSch.1 para.3—return of small disposals and gains.Capital Gains Tax Act 1979 (c. 14, SIF 63:2) s.45(3)—returns of chargeable gains accruing to a married woman.
F15Finance Act 1990 s. 90(2)(b), (5)where a notice to deliver a return was, or falls to be given after 5April 1990.
F16Words in s. 12(2)(a) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 3(a) (with ss. 60, 101(1), 171, 201(3))
F17Words in s. 12(2)(a)(i) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 3(b) (with ss. 60, 101(1), 171, 201(3))
F18Words in s. 12(2)(a)(ii) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(3)(c) (with ss. 60, 101(1), 171, 201(3))
F19Words in s. 12(2)(a)(iii) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(3)(d) (with ss. 60, 101(1), 171, 201(3))
F20Capital Gains Tax Act 1979 (c. 14), s. 157(2), Sch. 7 paras. 1(2), 9for 1979-80et seq.
F21Finance Act 1989 s. 123in relation to assets acquired on or after 6April 1989.Previously
“£3000”
(a)—see earlier editions for earlier years.
(a)—Finance Act 1982 s. 81(1)(b)in relation to assets acquired on or after 6April 1982.
F22Words in s. 12(2)(b) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation and Chargeable Gains Act 1992 (c. 12) ss. 289, 290, Sch. 10 para. 2(3)(e) (with ss. 60, 101(1), 171, 201(3))
F23Repealed by Finance Act 1990 s. 90(2)(c),(5)and Sch. 19 Part Vwhere a notice to deliver a return was, or falls to be, given after 5April 1990.
F24Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 32.
F25 See Finance Act 1990 s. 39—power to call for a return in connection with claims for roll-over relief on disposal of shares to employee share ownership trusts.
Marginal Citations
M1[1965 Sch. X (6)(2).]
M2[1965 Sch. X 10.]
M3[1965 s. 45(1).]