(1)This section applies in a case within section 240(2) which involves a loss of tax in relation to a chargeable transfer, where—
(a)the lost tax involves an offshore matter, or
(b)the lost tax involves an offshore transfer which makes the lost tax significantly harder to identify.
(2)Proceedings for the recovery of the lost tax may be brought at any time not more than 12 years after the later of the dates in section 240(2)(a) and (b).
(3)Lost tax “involves an offshore matter” if it is charged on or by reference to property which is situated or held in a territory outside the United Kingdom at, or immediately after, the time of the chargeable transfer.
(4)Lost tax “involves an offshore transfer” if—
(a)it does not involve an offshore matter, and
(b)the property is transferred to a territory outside the United Kingdom at a relevant time.
(5)In subsection (4)(b) “relevant time” means a time after the chargeable transfer but before—
(a)the date on which an account under section 216 is delivered to HMRC in relation to the chargeable transfer, or
(b)any later date on which an account under section 217 is so delivered.
(6)Where lost tax involves an offshore transfer, the cases in which the transfer makes the lost tax significantly harder to identify include any case where, because of the transfer—
(a)HMRC was significantly less likely to become aware of the lost tax, or
(b)HMRC was likely to become aware of the lost tax only at a significantly later time.
(7)But proceedings may not be brought under this section if—
(a)before the last date on which the proceedings could otherwise be brought, HMRC received relevant overseas information on the basis of which HMRC could reasonably have been expected to become aware of the lost tax, and
(b)it was reasonable to expect the proceedings to be brought before that date.
(8)In subsection (7)(a) “relevant overseas information” means information which is provided to HMRC by an authority in a territory outside the United Kingdom under—
(a)any provision of EU law relating to any tax, or
(b)an agreement to which the United Kingdom and that territory are parties, with or without other parties.
(9)This section is subject to any provision of this Act which allows for a longer period for the bringing of proceedings.]
Textual Amendments
F1S. 240B inserted (with effect in accordance with s. 81(4) of the amending Act) by Finance Act 2019 (c. 1), s. 81(3)