Part 15Transactions in securities

Procedure for counteraction of corporation tax advantages

746Counteraction notices

1

If—

a

a company on which a notification is served under section 743 does not send a statutory declaration to an officer of Revenue and Customs under section 744 within 30 days of the issue of the notification, or

b

the tribunal to which such a declaration is sent under section 745 determines that there is a prima facie case for serving a notice on a company under this section,

the corporation tax advantage in question is to be counteracted by adjustments.

2

The adjustments required to be made to counteract the corporation tax advantage and the basis on which they are to be made are to be specified in a notice served on the company by an officer of Revenue and Customs.

3

In this Part such a notice is referred to as a “counteraction notice”.

4

Any of the following adjustments may be specified—

a

an assessment,

b

the nullifying of a right to repayment,

c

the requiring of the return of a repayment already made, or

d

the calculation or recalculation of profits or gains or liability to corporation tax.

5

Nothing in this section authorises the making of an assessment later than 6 years after the accounting period to which the corporation tax advantage relates.

6

This section is subject to—

  • section 747 (timing of assessments in section 738 cases), and

  • section 749(2) (effect of clearance notification under section 748).

7

But no other provision in the Corporation Tax Acts is to be read as limiting the powers conferred by this section.