Taxes Management Act 1970

Corporation tax U.K.

[F1 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 [F2 which, under section 7(2) or 11(3) of the principal Act, is to be set off against the corporation tax so chargeable].

(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.]

Textual Amendments

F1 S. 10 substituted (with effect in respect of notices given for accounting periods ending after 31.3.1989) by Finance Act 1988 (c. 39), s. 121

F2 Words in s. 10(3) substituted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para.1

11 Return of profits. U.K.

(1) A company may be required by a notice served on the company by an F3 ... officer of the Board to deliver to the officer [F4 not later than the final day determined under subsection (4) below a return [F5 such information as may [F6 reasonably] be required in pursuance of the notice together with such accounts, statements and reports as may [F6 reasonably] be so required.

(1A) The information which a company may [F7 reasonably] be required to supply under this section is information which is relevant to the application of the Corporation Tax Acts to the company; and the accounts, statements and reports which a company may [F7 reasonably] be so required to supply are accounts, statements and reports which are so relevant.]]

[F8 (2) A notice under this section may require a return [F9 for] any period specified in the notice (in this subsection referred to as “the specified period”) but, if the specified period does not coincide with an accounting period of the company and the company is within the charge to corporation tax in the whole or some part of the specified period, then—

(a) if an accounting period of the company ends in or at the end of the specified period, the notice shall be taken to require a return for that accounting period or, if there is more than one, for each of them;

(b) if no accounting period of the company ends in or at the end of the specified period but there is a part of the specified period which does not fall within an accounting period of the company, the notice shall be taken to require a return for that part of the specified period; and

(c) if the specified period begins in or at the beginning of an accounting period of the company and ends before the end of that period, the notice shall be of no effect and, accordingly, the company shall not be required to make any return pursuant to it.]

[F10 (2A) In the case of a company which carries on a trade, profession or business in partnership with one or more other persons, a return under this section shall include each amount which, in any relevant statement, is stated to be equal to its share of any income, loss or charge for the period in respect of which the statement is made.

(2B) In subsection (2A) above “relevant statement” means a statement which, as respects the partnership, falls to be made under section 12AB of this Act for a period which includes, or includes any part of, the period in respect of which the return is required.]

(3) Every return under this section shall include a declaration [F11 by the person making the return] to the effect that the return is [F11 to the best of his knowledge] correct and complete .

[F12 (4) Subject to subsection (5) below, the final day for the delivery of any return required by a notice under this section shall be whichever is the later of—

(a) the first anniversary of the last day of the period to which the return relates;

(b) the first anniversary of the last day of that period of account of the company in which falls the last day of the accounting period (if any) to which the return relates; and

(c) the end of the period of three months beginning on the day following that on which the notice was served.

(5) In paragraph (b) of subsection (4) above “period of account” has the same meaning as in the principal Act, but for the purposes of that paragraph the last day of a period of account which is longer than eighteen months shall be treated as the day on which expires the period of eighteen months beginning on the first day of the period of account.

(6) In relation to a company which—

(a) is resident in the United Kingdom throughout the period to which the return relates (in this subsection referred to as “the return period”); and

(b) is required under the Companies Act 1985 to prepare accounts for a period consisting of or including the return period,

the reference to accounts in subsection (1) above is a reference only to such accounts, containing such particulars and having annexed to them such documents, as are required under that Act to be so prepared.

F13 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) Different information, accounts, statements and reports may be required in pursuance of a notice under this section in relation to different descriptions of company F14 ...

[F15 (8A) A return under this section shall be amended by the company delivering to the inspector a document in such form, containing such information and accompanied by such statements as the Board may require.]

(9) In the application of this section to a company registered in Northern Ireland, references to the Companies Act 1985 shall be construed as references to the Companies (Northern Ireland) Order 1986.]

[F16 (10) In the following provisions of this Act “section 11 notice” means a notice under this section.]

Textual Amendments

F3 Words in s. 11(1) repealed (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 26 Pt. 5(23); S.I. 1998/3173, art. 2

F4 Finance (No. 2) Act 1987 (c. 51), s. 82(2); S.I. 1992/3066, art. 3

F5 Finance Act 1990 (c. 29), s. 91(2); S.I. 1992/3066, art. 3

F6 Word in s. 11(1) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 181(1); S.I. 1998/3173, art. 2

F7 Word in s. 11(1A) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 181(2); S.I. 1998/3173, art. 2

F8 Finance (No. 2) Act 1987 (c. 51), s. 82(3); S.I. 1992/3066, art. 3

F9 Finance Act 1990 (c. 29), s. 91(3); S.I. 1992/3066, art. 3

F10 S. 11(2A)(2B) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 181(3); S.I. 1998/3173, art. 2

F11 Finance Act 1990 s. 91(4), (8)with respect to any notice served on or after 26July 1990.

F12 S. 11(4)-(9) substituted for s. 11(4)-(6) by Finance (No. 2) Act 1987 (c. 51), s. 82(4); S.I. 1992/3066, art. 3

F13 Finance Act 1990 (c. 29), s. 91(5); S.I. 1992/3066, art. 3

F14 Finance Act 1990 (c. 29), s. 91(6); S.I. 1992/3066, art. 3

F15 Finance Act 1990 (c. 29), s. 91(7); S.I. 1992/3066, art. 3

F16 S. 11(10) inserted (29.4.1996) by Finance Act 1996 (c. 8), Sch. 24 para. 2

Modifications etc. (not altering text)

C1 S. 11 extended by Income and Corporation Taxes Act 1988 (c. 1), Sch. 13A para. 5(1) (as inserted (with effect in accordance with Sch. 25 para. 3 of the amending Act) by Finance Act 1996 (c. 8), Sch. 25 para. 2; S.I. 1998/3173, art. 2)

C2 See—Finance (No. 2) Act 1987 (c. 51), ss. 82(2)(3)(4), 95(2)(3); Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 10(1); Finance Act 1990 (c. 29), s. 91 for modifications in the event of a notice being served after a day to be appointed.

F17 11A Notice of liability to capital gains tax. U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F17 S. 11A repealed (with effect as respects the year 1995-96 and subsequent years of assessment) by Finance Act 1995 (c. 4), s. 115(3)(13), Sch. 29 Pt. 8(14) (previously repealed by Finance Act 1994 (c. 9), s. 199(2)(3), Sch. 26 Pt. 5(23); S.I. 1998/3173, art. 2)

[F18 11AA Return of profits to include self-assessment. U.K.

(1) Every return under section 11 of this Act for an accounting period shall include an assessment (a self-assessment) of the amount in which,

[F19 (a) on the basis of the information contained in the return; and

(b) taking into account any relief [F20 or allowance] a claim for which is included in the return,]

the company is chargeable to corporation tax for that period.

(2) Subject to subsection (3) below—

(a) at any time before the end of the period of nine months beginning with the day on which a company’s return is delivered, an officer of the Board may by notice to the company so amend the company’s self-assessment as to correct any obvious errors or mistakes in the return (whether errors of principle, arithmetical mistakes or otherwise); and

(b) at any time before the end of the period of twelve months beginning with the filing date, a company may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to its return which it has notified to such an officer.

(3) No amendment of a self-assessment may be made under subsection (2) above at any time during the period—

(a) beginning with the day on which an officer of the Board gives notice of his intention to enquire into the return, and

(b) ending with the day on which the officer’s enquiries into the return are completed.

(4) In this section and section 11AB of this Act “the filing date” means the day mentioned in section 11(4) of this Act.

[F21 (5) This section, except subsection (4) above, applies in relation to a return for a period—

(a) which ends in or at the end of the period specified in the section 11 notice;

(b) which in the return is treated as an accounting period; but

(c) which is not, or may not be, an accounting period.

(6) In relation to such a return, “the filing date” means, in this section and section 11AB of this Act, the day which would be the day mentioned in section 11(4) of this Act if the period for which the return is made were an accounting period.]]

Textual Amendments

F18 S. 11AA inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 182; S.I. 1998/3173, art. 2

F19 S. 11AA(1)(a)(b) substituted (with effect in accordance with s. 103(7) of the amending Act) for words by Finance Act 1995 (c. 4), s. 104(5)

F20 Words in s. 11AA(1)(b) substituted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 121(5)

F21 S. 11AA(5)(6) inserted (with effect in accordance with Sch. 24 para. 8(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 24 para. 3

[F22 11AB Power to enquire into return of profits. U.K.

(1) An officer of the Board may enquire into—

(a) the return on the basis of which a company’s self-assessment was made under section 11AA of this Act, or

(b) any amendment of that return on the basis of which that assessment was amended under subsection (2)(b) of that section, [F23 or

(c) any claim or election included in the return (by amendment or otherwise)] [F24 or

(d) if it appears to the officer that a return delivered in response to a section 11 notice—

(i) is or may be a return for the wrong period, or

(ii) has become a return for the wrong period as a result of a direction under section 12(5A) of the principal Act,

the period for which the return should have been made;]

if, before the end of the period mentioned in subsection (2) below, he gives notice in writing to the company of his intention to do so.

(2) The period referred to in subsection (1) above is—

(a) in the case of a return delivered or amendment made on or before the filing date, the period of twelve months beginning with that date;

(b) in the case of a return delivered or amendment made after that date, the period ending with the quarter day next following the first anniversary of the day on which the return or amendment was delivered or made;

and the quarter days for the purposes of this subsection are 31st January, 30th April, 31st July and 31st October.

(3) A return or amendment which has been enquired into under subsection (1) above shall not be the subject of a further notice under that subsection.

[F25 (4) For the purposes of subsection (1)(d) above a return is a return for the wrong period in each of the cases set out below.

(5) The first case is where—

(a) the return is made for a period which ends in or at the end of the period specified in the section 11 notice and which in the return is treated as an accounting period; but

(b) the period for which the return is made is not an accounting period of the company.

(6) The second case is where—

(a) the return is made for a part of the period specified in the section 11 notice which in the return is treated as not falling within an accounting period of the company; but

(b) there is an accounting period ending in or at the end of the period specified in the section 11 notice.]]

Textual Amendments

F22 S. 11AB inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 183; S.I. 1998/3173, art. 2

F23 S. 11AB(1)(c) and preceding word inserted (with effect in accordance with Sch. 19 para. 1 of the amending Act) by Finance Act 1996 (c. 8), Sch. 19 para. 2

F24 S. 11AB(1)(d) and preceding word inserted (with effect in accordance with Sch. 24 para. 8(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 24 para. 4(1)

F25 S. 11AB(4)-(6) inserted (with effect in accordance with Sch. 24 para. 8(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 24 para. 4(2)

[F26 11AC Modifications of sections 11AA and 11AB in relation to non-annual accounting of general insurance business. U.K.

(1) This section applies in any case where a company carrying on insurance business in any period delivers a return for that period under section 11 of this Act which is based wholly or partly on accounts which the company is required or permitted to draw up using the method described in paragraph 52 of Schedule 9A to the Companies Act 1985 (accounting for general insurance business on a non-annual basis).

(2) Where this section applies, section 11AA(2) of this Act shall have effect as if after paragraph (b) there were added “and

“(c1) where a company has delivered a return which is based wholly or partly on accounts drawn up as mentioned in section 11AC(1) of this Act, then, at any time before the end of the period of twelve months beginning with the date on which any particular technical provision constituted in the case of those accounts as described in paragraph 52 of Schedule 9A to the Companies Act 1985 is replaced as described in sub-paragraph (4) of that paragraph, the company may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to the return—

(i) which arise from the replacement of that technical provision, and

(ii) which the company has notified to such an officer.”

(3) Where this section applies, section 11AB of this Act shall have effect—

(a) as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c1)”; and

(b) as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—

“(a1) in the case of a return (whenever delivered) which is based wholly or partly on accounts drawn up as mentioned in section 11AC(1) of this Act, is whichever of the following periods ends the later, that is to say—

(i) the period of two years beginning with the date (or, if there is more than one such date, the latest date) on which any technical provision constituted in the case of those accounts as described in paragraph 52 of Schedule 9A to the Companies Act 1985 is replaced as mentioned in sub-paragraph (4) of that paragraph; or

(ii) the period ending with the quarter day next following the first anniversary of the day on which the return was delivered; and

(b1) in the case of an amendment of such a return—

(i) if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or

(ii) if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;”.

Textual Amendments

F26 Ss. 11AC-11AE inserted (with effect in accordance with s. 170(2) of the amending Act) by Finance Act 1996 (c. 8), s. 170(1)

11AD Modifications of sections 11AA and 11AB for insurance companies with non-annual actuarial investigations. U.K.

(1) This section applies in any case where a return under section 11 of this Act is delivered by an insurance company which is permitted by an order under section 68 of the Insurance Companies Act 1982 to cause investigations to be made into its financial condition less frequently than is required by section 18 of that Act.

(2) Where this section applies, section 11AA(2) of this Act shall have effect as if, after paragraph (b), there were added “and

(c2) where a company falling within section 11AD(1) of this Act has delivered a return for any period, then, at any time before the end of the period of twelve months beginning with the date as at which the relevant investigation is carried out, that is to say—

(i) if the return is for a period as at the end of which there is carried out an investigation under section 18 of the Insurance Companies Act 1982 into the financial condition of the company, that investigation, or

(ii) if the return is not for such a period, the first such investigation to be made into the financial condition of the company as at the end of a subsequent period,

the company may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to its return which arise from that investigation and which the company has notified to such an officer.”

(3) Where this section applies, section 11AB of this Act shall have effect—

(a) as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c2)”; and

(b) as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—

“(a2) in the case of a return delivered at any time by a company falling within section 11AD(1) of this Act, is the period of two years beginning with the date as at which the relevant investigation, as defined in section 11AA(2)(c2) of this Act, is carried out; and

(b2) in the case of an amendment of such a return—

(i) if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or

(ii) if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;”.

Textual Amendments

F26 Ss. 11AC-11AE inserted (with effect in accordance with s. 170(2) of the amending Act) by Finance Act 1996 (c. 8), s. 170(1)

11AE Modifications of sections 11AA and 11AB for friendly societies with non-annual actuarial investigations. U.K.

(1) This section applies in any case where a return under section 11 of this Act is delivered by a friendly society which is required by section 47 of the Friendly Societies Act 1992 to cause an investigation to be made into its financial condition at least once in every period of three years.

(2) Where this section applies, section 11AA(2) of this Act shall have effect as if, after paragraph (b), there were added “and

(c3) where a friendly society falling within section 11AE(1) of this Act has delivered a return for any period, then, at any time before the end of the period of fifteen months beginning with the date as at which the relevant investigation is carried out, that is to say—

(i) if the return is for a period as at the end of which there is carried out an investigation under section 47 of the Friendly Societies Act 1992 into the financial condition of the society, that investigation, or

(ii) if the return is not for such a period, the first such investigation to be made into the financial condition of the society as at the end of a subsequent period,

the society may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to its return which arise from that investigation and which the society has notified to such an officer.”

(3) Where this section applies, section 11AB of this Act shall have effect—

(a) as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c3)”; and

(b) as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—

“(a3) in the case of a return delivered at any time by a friendly society falling within section 11AE(1) of this Act, is the period of twenty seven months beginning with the date as at which the relevant investigation, as defined in section 11AA(2)(c3) of this Act, is carried out; and

(b3) in the case of an amendment of such a return—

(i) if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or

(ii) if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;”.]

Textual Amendments

F26 Ss. 11AC-11AE inserted (with effect in accordance with s. 170(2) of the amending Act) by Finance Act 1996 (c. 8), s. 170(1)

12 Information about chargeable gains. U.K.

F27 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) A notice under section 8 [F28 or section 8A] 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—

F29 [(a) any assets exempted by the following provisions of the [F30 1992 Act], namely—

(i) section [F31 51(1)] (rights to winnings from pool betting, lotteries or games with prizes),

(ii) section [F32 121] (government non-marketable securities),

(iii) section [F33 263, 268 or 269] (passenger vehicles, decorations for valour or gallant conduct and foreign currency for personal expenditure)], or

(b) unless the amount or value of the consideration for its acquisition exceeded [F34 £6,000], any asset which is tangible movable property and is not within the exceptions in [F29 section [F35 262(6)]] of the said Act (terminal markets and currency), or

(c) any assets acquired as trading stock.

(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.

F36 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In this section “trading stock” has the meaning given by section [F37 100(2)] of the principal Act.

Textual Amendments

F27 S. 12(1) repealed (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 26 Pt. 5(23); S.I. 1998/3173, art. 2

F28 Finance Act 1990 s. 90(2)(b), (5) where a notice to deliver a return was, or falls to be given after 5April 1990.

F29 Capital Gains Tax Act 1979 (c. 14), s. 157(2), Sch. 7 paras. 1(2), 9for 1979-80et seq.

F30 Words 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))

F31 Words 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))

F32 Words 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))

F33 Words 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))

F34 Finance Act 1989 s. 123in relation to assets acquired on or after 6April 1989. Previously “£3000”

F35 Words 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))

F36 S. 12(4) repealed (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 26 Pt. 5(23); S.I. 1998/3173, art. 2

F37 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 32.

Modifications etc. (not altering text)

C3 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.