698Counteraction noticesU.K.
[F1(1)If on an enquiry under section 695 an officer of Revenue and Customs determines that section 684 applies to the taxpayer, the income tax advantage in question is to be counteracted by adjustments, unless the officer is of the opinion that no counteraction is required.]
(2)The adjustments required to be made to counteract the income tax advantage and the basis on which they are to be made are to be specified in a notice served on the person by an officer of Revenue and Customs.
(3)In this Chapter such a notice is referred to as a “counteraction notice”.
(4)Any of the following adjustments may be specified—
(a)an assessment,
(b)the nullifying of a right to repayment,
(c)the requiring of the return of a repayment already made, or
(d)the calculation or recalculation of profits or gains or liability to income tax.
[F2(5)An assessment may be made in accordance with a counteraction notice at any time (without regard to any time limit on making the assessment that would otherwise apply).]
(6)This section is subject to—
F3...
section 700 (timing of assessments F4...), and
section 702(2) (effect of clearance notification under section 701).
(7)But no other provision in the Income Tax Acts is to be read as limiting the powers conferred by this section.
Textual Amendments
F1S. 698(1) substituted (with effect in accordance with s. 34(8)(9) of the amending Act) by Finance Act 2016 (c. 24), s. 34(4)
F2S. 698(5) substituted (with effect in accordance with s. 34(8)(9) of the amending Act) by Finance Act 2016 (c. 24), s. 34(5)
F3Words in s. 698(6) omitted (8.4.2010 with effect in accordance with Sch. 12 para. 15(1) of the amending Act) by virtue of Finance Act 2010 (c. 13), Sch. 12 para. 3(a)
F4Words in s. 698(6) omitted (8.4.2010 with effect in accordance with Sch. 12 para. 15(1) of the amending Act) by virtue of Finance Act 2010 (c. 13), Sch. 12 para. 3(b)