Finance Act 1998

31(1)This paragraph applies if a company amends its company tax return at a time when an enquiry [F1into the return is in progress in relation to any matter to which the amendment relates or which is affected by the amendment].U.K.

(2)The amendment does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry.

(3)So far as the amendment affects—

(a)the amount stated in the company’s self-assessment as the amount of tax payable, or

(b)any amount that affects or may affect—

(i)the tax payable by the company for another accounting period, or

(ii)the tax liability of another company for any accounting period,

it does not take effect [F2while the enquiry is in progress in relation to any matter to which the amendment relates or which is affected by the amendment].

This does not affect any claim by the company under section 59DA of the M1Taxes Management Act 1970 (claim for repayment in advance of liability being established).

(4)An amendment whose effect is deferred under sub-paragraph (3) takes effect as follows—

(a)if the conclusions in [F3a partial or final closure notice] state either—

(i)that the amendment was not taken into account in the enquiry, or

(ii)that no amendment of the return is required arising from the enquiry,

the amendment takes effect [F4when a partial closure notice is issued in relation to the matters to which the amendment relates or which are affected by the amendment or, if no such notice is issued, a final closure notice is issued];

[F5(b)in any other case, the amendment takes effect as part of the amendments made by the closure notice.]

(5)For the purposes of this paragraph the period during which an enquiry is in progress [F6in relation to any matter] is the whole of the period—

(a)beginning with the day on which [F7an officer of Revenue and Customs] [F8gives] notice of enquiry into the return, and

(b)ending with the day on which [F9a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued].

Textual Amendments

F1Words in Sch. 18 para. 31(1) substituted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 25(2)

F2Words in Sch. 18 para. 31(3) substituted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 25(3)

F3Words in Sch. 18 para. 31(4)(a) substituted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 25(4)(a)

F4Words in Sch. 18 para. 31(4)(a) substituted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 25(4)(b)

F5Sch. 18 para. 31(4)(b) substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 119(5)(13); S.I. 2009/405, art. 2

F6Words in Sch. 18 para. 31(5) inserted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 25(5)(a)

F9Words in Sch. 18 para. 31(5) substituted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 25(5)(b)

Modifications etc. (not altering text)

C1Sch. 18 paras. 31-34 applied (with modifications) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Lloyds Underwriters (Tax) Regulations 2005 (S.I. 2005/3338), regs. 1(1), 5

C2Sch. 18 para. 31 applied (8.4.2010) by Finance Act 2010 (c. 13), Sch. 1 para. 23(5)(c)

C3Sch. 18 para. 31(3) excluded (with effect in accordance with s. 28(5) of the amending Act) by 2015 c. 11, s. 101B(3) (as inserted by Finance Act 2022 (c. 3), s. 28(3)(b))

C4Sch. 18 para. 31(3) excluded (with effect in accordance with s. 28(5) of the amending Act) by 2015 c. 11, s. 101A(3) (as inserted by Finance Act 2022 (c. 3), s. 28(2)(b))

Marginal Citations