Taxes Management Act 1970

Corporation tax U.K.

10 [Notice of liability to corporation tax. U.K.

(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

F1 Finance 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”.

11 Return of profits. [1966 Sch.VI 2.] U.K.

(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 [the Capital Gains Tax Act 1979 F2 ] 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 F3 F4 .

(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 F4 .

(3) Every return under this section shall include a declaration [by the person making the return F5 ] to the effect that the return is [to the best of his knowledge F5 ] correct and complete F4 .

(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 F6 ] F7 .] F4 F8

Textual Amendments

F2 Capital Gains Tax Act 1979 (c. 14) s. 157(2)andSch.7 para.8

F3 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.

F4 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.

F5 Finance Act 1990 s. 91(4), (8)with respect to any notice served on or after 26July 1990.

F6 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 10.Previously

“85(4) of the Finance Act 1972”.

F7 Finance Act 1972 s.111andSch.24 para.5with effect from6April1973.

F8 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).

11A [Notice of liability to capital gains tax. U.K.

(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 yearF9 .] F10

Textual Amendments

F9 S. 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)

F10 S. 11A(3) repealed (for 1990-91 and subsequent years) by Finance Act 1988 (c. 39), s. 148, Sch. 14 Pt. VIII

12 Information about chargeable gains. [1965 Sch.X 1(1).] [1965 Sch.X 6(1); 1966 Sch.VI 2(6).] U.K.

[(1) [Sections 8 and 8A F11 ] of this Act shall apply in relation to capital gains tax as [they apply F11 ] in relation to income tax, and subject to any necessary modifications F12 .] F13

(2) A notice under section 8 [or section 8A F14 ] 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 Capital Gains Tax Act 1979, namely—

(i) section 19(4) (rights to winnings from pool betting, lotteries or games with prizes),

(ii) section 71 (government non-marketable securities),

(iii) section 130, 131 or 133 (passenger vehicles, decorations for valour or gallant conduct and foreign currency for personal expenditure) F15 ], or

(b) unless the amount or value of the consideration for its acquisition exceeded [£6,000 F16 ], any asset which is tangible movable property and is not within the exceptions in [section 128(6) F15 ] 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 F17 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) F18 ] of the principal Act. F19

Textual Amendments

F11 Finance 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”.

F12 Finance 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.

F13 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.

F14 Finance Act 1990 s. 90(2)(b), (5)where a notice to deliver a return was, or falls to be given after 5April 1990.

F15 Capital Gains Tax Act 1979 (c. 14 SIF 63:2) s.157(2)andSch.7 para.1(2), 9for1979—80et seq.

F16 Finance 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.

F17 Repealed 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.

F18 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 32.

F19 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)

M2 1965

Sch. X 10

M3 1965

S. 45(1)