Finance (No. 2) Act 2017

FA 1998 U.K.

23 U.K. Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended as follows.

24 (1) Paragraph 30 (amendment of self-assessment during enquiry to prevent loss of tax) is amended as follows. U.K.

(2) In sub-paragraph (1)—

(a) for “before the enquiry is completed” substitute “ while the enquiry is in progress in relation to a matter ”;

(b) after “deficiency” insert “ so far as it relates to the matter ”.

(3) After sub-paragraph (5) insert—

“(6) For the purposes of this paragraph, the period during which an enquiry is in progress in relation to any matter is the whole of the period—

(a) beginning with the day on which notice of enquiry is given, and

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

25 (1) Paragraph 31 (amendment of return by company during enquiry) is amended as follows. U.K.

(2) In sub-paragraph (1), for “is in progress into the return” substitute “ into the return is in progress in relation to any matter to which the amendment relates or which is affected by the amendment ”.

(3) In sub-paragraph (3) for “until after the enquiry is completed” substitute “ while the enquiry is in progress in relation to any matter to which the amendment relates or which is affected by the amendment ”.

(4) In sub-paragraph (4)(a)—

(a) for “the closure notice” substitute “ a partial or final closure notice ”;

(b) for “on the completion of the enquiry” substitute “ when 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 ”.

(5) In sub-paragraph (5)—

(a) after “in progress” insert “ in relation to any matter ”;

(b) for “the enquiry is completed” substitute “ a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued ”.

26 (1) Paragraph 31A (referral of questions to the tribunal during enquiry) is amended as follows. U.K.

(2) In sub-paragraph (1), for “into” substitute “ in relation to any matter relating to ”.

(3) In sub-paragraph (5)—

(a) after “in progress” insert “ in relation to any matter ”;

(b) for “the enquiry is completed” substitute “ a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued ”.

27 U.K. In paragraph 31C (effect of referral on enquiry), in sub-paragraph (1)—

(a) for paragraph (a) substitute—

“(a) no partial closure notice relating to the question referred shall be given,

(aa) no final closure notice shall be given in relation to the enquiry, and”;

(b) in paragraph (b), for “such a notice” substitute “ a notice referred to in paragraph (a) or (aa) ”.

28 (1) Paragraph 32 (completion of enquiry) is amended as follows. U.K.

(2) For sub-paragraph (1) substitute—

“(1) Any matter to which an enquiry relates is completed when an officer of Revenue and Customs informs the company by notice (a “partial closure notice”) that they have completed their enquiries into that matter.

(1A) An enquiry is completed when an officer of Revenue and Customs informs the company by notice (a “final closure notice”)—

(a) in a case where no partial closure notice has been given, that they have completed their enquiries, or

(b) in a case where one or more partial closure notices have been given, that they have completed their remaining enquiries.

(1B) A partial or final closure notice takes effect when it is issued.”

(3) In subsection (2), after “concludes” insert “ in a partial or final closure notice ”.

(4) After sub-paragraph (3) insert—

“(4) In the Taxes Acts, references to a closure notice under this paragraph are to a partial or final closure notice under this paragraph.”

29 U.K. In paragraph 33 (direction to complete enquiry), in sub-paragraphs (1) and (3), for “closure notice” substitute “ partial or final closure notice ”.

30 (1) Paragraph 34 (amendment of return after enquiry) is amended as follows. U.K.

(2) In sub-paragraph (1), for “closure notice” substitute “ partial or final closure notice ”.

(3) In sub-paragraph (2)—

(a) for “closure notice” substitute “ partial or final closure notice ”;

(b) after “must” insert “ state the officer's conclusions and ”.

(4) In sub-paragraphs (2A), (4)(c) and (5), for “closure notice” substitute “ partial or final closure notice ”.

31 U.K. In paragraph 42 (restriction on power to make discovery assessment or determination), in sub-paragraph (2A), for the words from “after any” to the end substitute “ a notice within sub-paragraph (4) after any enquiries have been completed into the return (so far as relating to the matters to which the notice relates) ”.

32 U.K. In paragraph 44 (situation not disclosed by return or related document etc), in sub-paragraph (1), for paragraph (b) substitute—

“(b) in a case where a notice of enquiry into the return was given—

(i) issued a partial closure notice as regards a matter to which the situation mentioned in paragraph 41(1) or (2) relates, or

(ii) if no such partial closure notice was issued, issued a final closure notice,”.

33 U.K. In paragraph 61 (consequential claims etc), in sub-paragraphs (1)(a) and (3)(a), for “closure notice” substitute “ partial or final closure notice ”.

34 (1) Paragraph 88 (conclusiveness) is amended as follows. U.K.

(2) In sub-paragraph (3)(b), at the end insert “ (or is completed so far as relating to the matters to which the amount relates by the issue of a partial closure notice) ”.

(3) In sub-paragraph (4)(b), at the end insert “ (or the completion of the enquiry so far as relating to the matters to which the amount relates by the issue of a partial closure notice) ”.