Taxation (International and Other Provisions) Act 2010

[F1 PART 8 U.K. Company tax returns

Textual Amendments

F1 Sch. 7A inserted (with effect in accordance with Sch. 5 para. 25(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 2 (with Sch. 5 para. 28)

Elections under section 375, 377 or 380 U.K.

68 U.K. The following elections (or their revocation) must be made by a company in its company tax return (whether as originally made or by amendment) for the accounting period to which the election (or revocation) relates—

(a) an election under section 375 (a non-consenting company leaving pro-rata share of total disallowed amount out of account),

(b) an election under section 377 (a company specifying tax-interest expense amounts to be left out of account), and

(c) an election under section 380 (a company specifying tax-interest expense amounts to be brought into account).

Amendments to take account of operation of this Part of this Act (including elections) U.K.

69 (1) A company may amend its company tax return for an accounting period so as to make (or revoke) an election under section 375 at any time before— U.K.

(a) the filing date in relation to the period of account of the worldwide group to which the interest restriction return in question relates (see paragraph 7(5)), or

(b) if later, the end of the period of 3 months beginning with the day on which the interest restriction return in question is received by an officer of Revenue and Customs.

(2) A company that amends its company tax return for an accounting period as mentioned in sub-paragraph (1) must, before the time limit specified in that sub-paragraph, also amend the return to take account of the election (or revocation).

(3) If—

(a) a company is required by section 376 to leave an amount out of account in an accounting period, and

(b) the company has already delivered a company tax return for the period,

the company must amend its company tax return to take account of the requirement.

(4) The amendment must be made before the end of the period of 3 months beginning with the day after the relevant date (within the meaning of section 376).

(5) A company may amend its company tax return for an accounting period so as to make (or revoke) an election under section 377 or 380 at any time before—

(a) the end of the period of 36 months beginning with the day after the end of the accounting period, or

(b) if later, the end of the period of 3 months beginning with the day on which a relevant interest restriction return was received by an officer of Revenue and Customs.

(6) A company that amends its company tax return for an accounting period as mentioned in sub-paragraph (5) must, before the time limit specified in that sub-paragraph, also amend the return to take account of the election (or revocation).

(7) In sub-paragraph (5) “a relevant interest restriction return” means an interest restriction return for a period of account in relation to which the accounting period is a relevant accounting period.

(8) The time limit for amending a company tax return given by paragraph 15(4) of Schedule 18 to FA 1998 is subject to the time limits given by this paragraph.

[F2 Other cases where company must amend its return etc] U.K.

Textual Amendments

F2 Sch. 7A para. 70 cross-heading substituted (with effect in accordance with Sch. 8 para. 25 of the amending Act) by Finance Act 2018 (c. 3), Sch. 8 para. 15(4)

70 (1) If— U.K.

(a) a company has delivered a company tax return for an accounting period, but

(b) as a result of the submission of an interest restriction return, information contained in the company tax return is incorrect (for example, there is a change in the amount of profits on which corporation tax is chargeable),

the company [F3 must amend] its company tax return for the accounting period so as to correct the information.

[F4 (1A) The amendment must be made before whichever is the later of—

(a) the end of the period of 3 months beginning with the day on which the interest restriction return was submitted, or

(b) the time limit given by paragraph 15(4) of Schedule 18 to FA 1998.]

(2) If—

(a) a notice of determination under paragraph 56 or 58 is given to a company in relation to an accounting period, and

(b) the company has already delivered a company tax return for the period,

the company is treated as having amended its company tax return to take account of the determination.

Textual Amendments

F3 Words in Sch. 7A para. 70(1) substituted (with effect in accordance with Sch. 8 para. 25 of the amending Act) by Finance Act 2018 (c. 3), Sch. 8 para. 15(2)

F4 Sch. 7A para. 70(1A) inserted (with effect in accordance with Sch. 8 para. 25 of the amending Act) by Finance Act 2018 (c. 3), Sch. 8 para. 15(3)

[F5 Failure to comply with a requirement to amend company tax return U.K.

Textual Amendments

F5 Sch. 7A para. 70A and cross-heading inserted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 8 para. 16 (with Sch. 8 para. 26)

70A (1) This paragraph applies if a company— U.K.

(a) is required, as a result of paragraph 69(2), (3) or (6) or 70(1), to make an amendment of its company tax return for an accounting period, and

(b) has failed to make the required amendment by the amendment deadline.

(2) The company is liable to a penalty of £500.

(3) At any time before the end of the period of 12 months beginning with the amendment deadline, an officer of Revenue and Customs may, to the best of the officer's information and belief, make the required amendments of the company tax return.

(4) If an officer of Revenue and Customs amends the company tax return under sub-paragraph (3), the company may amend the return so as to correct the amendments made by the officer.

(5) An amendment under sub-paragraph (4) must be made before the end of the period of 3 months beginning with the day on which the officer amends the return under sub-paragraph (3) (and the time limit for amending a company tax return given by paragraph 15(4) of Schedule 18 to FA 1998 is subject to this sub-paragraph).

(6) Paragraph 29(3) to (7) apply in relation to a penalty under this paragraph as they apply in relation to a penalty under paragraph 29 but as if the reference in paragraph 29(4) to the filing date were to the amendment deadline.

(7) In this paragraph “the amendment deadline” means the end of the period for the making of the amendment given by paragraph 69(2), (4) or (6) or 70(1A).]

Regulations for purposes of [F6 paragraph 70(2)] etc U.K.

Textual Amendments

F6 Words in Sch. 7A para. 71 cross-heading substituted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 8 para. 17(3)

71 (1) The Commissioners may by regulations— U.K.

(a) make provision generally for the purposes of [F7 paragraph 70(2)], and

(b) make provision for other cases where a company is to be treated as having amended its company tax return.

(2) The provision that may be made by the regulations includes provision—

(a) permitting or requiring the company to deliver an amended company tax return for the accounting period;

(b) specifying amendments that may or must be made in the return;

(c) specifying a time limit for the delivery of the return that is later than that determined under paragraph 15(4) of Schedule 18 to FA 1998 (amendment of return by company).

Textual Amendments

F7 Words in Sch. 7A para. 71(1)(a) substituted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 8 para. 17(2)

Consequential claims to company tax returns U.K.

72 (1) This paragraph applies if— U.K.

(a) a company amends, or is treated as amending, its company tax return for an accounting period in consequence of a closure notice given in respect of an interest restriction return under paragraph 47 or a notice of determination given to the company under paragraph F8 ... 58, and

(b) the amendment has the effect of increasing the amount of corporation tax payable by the company for the accounting period.

(2) Any qualifying claim may be made or given within the period of one year beginning with the day on which the company receives a copy of the closure notice under paragraph 60(5) or the notice of determination.

(3) Any qualifying claim previously made which is not irrevocable—

(a) may be revoked or varied within that one-year period, and

(b) if it is revoked or varied, must be done so in the same manner as it was made and by or with the consent of the same person or persons who made or consented to it (or, if a person has died, by or with the consent of the person's personal representatives).

(4) For the purposes of this paragraph a claim is a “qualifying” claim if its making, revocation or variation has the effect of reducing the liability of the company to corporation tax for the accounting period (whether or not it also reduces the liability to tax of the company for other periods).

(5) But a claim is not a “qualifying” claim if—

(a) the making, revocation or variation of the claim would alter the liability to tax of any person other than the company, or

(b) the making, revocation or variation of the claim is such that, if it were to be made, revoked or varied, the total of the reductions in liability to tax of the company would exceed the additional liability to corporation tax resulting from the amendment.

(6) If a qualifying claim is made, revoked or varied as a result of this paragraph, all such adjustments must be made as are required to take account of the effect of taking that action on the liability of the company to tax for any period.

(7) The adjustments may be made by way of discharge or repayment of tax or the making of amendments, assessments or otherwise.

(8) The provisions of TMA 1970 relating to appeals against decisions on claims apply with any necessary modifications to a decision on the revocation or variation of a claim as a result of this paragraph.

(9) In this paragraph (except in sub-paragraph (8)) “claim” includes an election, an application and a notice, and references to making a claim are to be read accordingly.

(10) In this paragraph “tax” (except in the expression “corporation tax”) includes income tax and capital gains tax.

Textual Amendments

F8 Words in Sch. 7A para. 72(1)(a) omitted (with effect in accordance with Sch. 3 para. 30-36 of the amending Act) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 25

Meaning of “company tax return” U.K.

73 U.K. In this Schedule “company tax return” has the meaning given by paragraph 3 of Schedule 18 to FA 1998.]