110 Determinations requiring the sanction of the Board.U.K.
(1)This section has effect where a determination requiring the Board’s sanction is made for any of the following purposes, that is to say—
(a)the giving of a closure notice;
(b)the giving of a notice under section 30B(1) of the M1Taxes Management Act 1970 amending a partnership statement; or
(c)the making of a discovery assessment.
(2)If the closure notice, the notice under section 30B(1) of the M2Taxes Management Act 1970 or, as the case may be, a notice of the discovery assessment is given to any person—
(a)without the determination, so far as it is taken into account in the notice or assessment, having been approved by the Board, or
(b)without a copy of the Board’s approval having been served on that person at or before the time of the giving of the notice,
the closure notice, notice under section 30B(1) of that Act or, as the case may be, the discovery assessment shall be deemed to have been given or made (and in the case of an assessment notified) in the terms (if any) in which it would have been given or made had that determination not been taken into account.
(3)For the purposes of this section the Board’s approval of a determination requiring their sanction—
(a)must be given specifically in relation to the case in question and must apply to the amount determined; but
(b)subject to that, may be given by the Board (either before or after the making of the determination) in any such form or manner as they may determine.
(4)In this section references to a determination requiring the Board’s sanction are references (subject to subsection (5) below) to any of the following determinations, that is to say—
(a)a determination of an amount falling to be brought into account for tax purposes in respect of any assumption made by virtue of paragraph 1(2) of Schedule 28AA to the Taxes Act 1988 (provision not at arm’s length);
(b)a determination of the amount of any adjustment falling to be made for tax purposes in respect of the disregarding or reduction, in accordance with section 135, 136, 136A or 137 of the M3Finance Act 1993 (main benefit and arm’s length tests in relation to foreign exchange gains and losses), of any exchange loss, or of any exchange gain;
(c)a determination of the amount of any adjustment falling to be made for tax purposes in respect of any deduction from, or addition to, any amount in accordance with section 167 of the M4Finance Act 1994 (arm’s length test in relation to financial instruments).
(5)For the purposes of this section a determination shall be taken, in relation to a closure notice, a notice under section 30B(1) of the M5Taxes Management Act 1970 or a discovery assessment, not to be a determination requiring the Board’s sanction if—
(a)an agreement about the matters to which the determination relates has been made between an officer of the Board and the person in whose case it is made;
(b)that agreement is in force at the time of the giving of the notice or, as the case may be, of any notice of the assessment; and
(c)the matters to which the agreement relates include the amount determined.
(6)For the purposes of subsection (5) above an agreement made between an officer of the Board and any person (“the taxpayer”) in relation to any matter shall be taken to be in force at any time if, and only if—
(a)the agreement is one which has been made or confirmed in writing;
(b)that time is after the end of the period of thirty days beginning—
(i)in the case of an agreement made in writing, with the day of the making of the agreement, and
(ii)in any other case, with the day of the agreement’s confirmation in writing;
and
(c)the taxpayer has not, before the end of that period of thirty days, served a notice on an officer of the Board stating that he is repudiating or resiling from the agreement.
(7)The references in subsection (6) above to the confirmation in writing of an agreement are references to the service on the taxpayer by an officer of the Board of a notice in writing—
(a)stating that the agreement has been made; and
(b)setting out the terms of the agreement.
(8)The matters that may be questioned on so much of any appeal by virtue of any provision of the M6Taxes Management Act 1970 or Schedule 18 to this Act as relates to a determination the making of which has been approved by the Board for the purposes of this section shall not include the Board’s approval, except to the extent that the grounds for questioning the approval are the same as the grounds for questioning the determination itself.
(9)In this section—
“closure notice” means—
(a)a notice under section 28A(5) or 28B(5) of the M7Taxes Management Act 1970 stating the conclusions of an officer of the Board in relation to any self-assessment, partnership statement, claim or election; or
(b)a closure notice under paragraph 32 of Schedule 18 to this Act in relation to an enquiry into a company tax return;
“discovery assessment” means—
(a)an assessment under section 29 of the M8Taxes Management Act 1970; or
(b)a discovery assessment or discovery determination under paragraph 41 of Schedule 18 to this Act (including an assessment by virtue of paragraph 52 of that Schedule).
(10)This section has effect—
(a)for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the M9Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions); and
(b)for the purposes of income tax, as respects any year of assessment ending on or after that day.