Search Legislation

Corporation Tax Act 2010

Status:

This is the original version (as it was originally enacted).

Recovery of unpaid corporation tax for accounting period ending on or after change

713Recovery of unpaid corporation tax for accounting period ending on or after change

(1)This section applies if an officer of Revenue and Customs considers that—

(a)there has been a change in the ownership of a company (“Y”),

(b)any corporation tax has been assessed on Y or an associated company for an accounting period ending on or after the change,

(c)that tax remains unpaid at any time more than 6 months after it was assessed, and

(d)the condition in section 714 (the expectation condition) is met.

(2)A person who is linked to Y may be assessed by the officer and charged to an amount of corporation tax which does not exceed the amount remaining unpaid.

(3)A person assessed and charged under this section is to be assessed and charged in the name of the company (“T”) by which the tax remains unpaid.

(4)An assessment under this section is not out of time if it is made within 3 years from the date of the final determination of the liability of T to corporation tax for the accounting period mentioned in subsection (1)(b).

(5)For the meaning of “associated company”, see section 718.

714The expectation condition

(1)The condition mentioned in section 713(1)(d) is that it would be reasonable (apart from section 713) to make the inference specified in subsection (3) from any of the matters specified in subsection (2).

(2)Those matters are—

(a)the terms of any transactions entered into in connection with the change in the ownership of Y, and

(b)the other circumstances of the change and of any such transactions.

(3)The inference is that at least one of the transactions mentioned in subsection (2) was entered into by one or more of its parties on the assumption that, if a potential tax liability were to arise, it would be unlikely to be met or to be met in full.

(4)A “potential tax liability” is a liability to pay corporation tax which would or might arise—

(a)from an assessment, made after the change in ownership, on Y or an associated company (whether or not a particular associated company), and

(b)in foreseeable circumstances.

(5)Circumstances are “foreseeable circumstances” if—

(a)the circumstances were reasonably foreseeable at the time of the change in ownership, or

(b)there was a reasonably foreseeable risk at that time that the circumstances might occur.

(6)For the meaning of “transaction entered into in connection with change in ownership”, see section 715.

715Meaning of “transaction entered into in connection with change in ownership”

(1)This section has effect for the purposes of section 714.

(2)A transaction is entered into in connection with a change in the ownership of Y if—

(a)it is the transaction, or one of the transactions, by which the change is effected, or

(b)it is entered into as part of a series of transactions, or scheme, of which transactions effecting the change have formed or will form part.

(3)Any reference in this section to a scheme is to a scheme, arrangements or understanding of any kind.

(4)It does not matter for the purposes of subsection (3)—

(a)whether the scheme, arrangements or understanding is legally enforceable, or

(b)how many transactions are involved.

(5)It does not matter, for the purpose of determining whether any transactions have formed or will form part of a series of transactions or scheme, that the parties to each of the transactions are not the same.

(6)The cases in which any two or more transactions are to be taken as forming part of a series of transactions or scheme include a case in which it would be reasonable to assume that one or more of them—

(a)would not have been entered into independently of the other or others, or

(b)if entered into independently of the other or others, would not have taken the same form or been on the same terms.

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open The Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act without Schedules as a PDF

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Show Explanatory Notes for Sections: Displays relevant parts of the explanatory notes interweaved within the legislation content.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enactedversion that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources