Part 4Property income

Chapter 4Profits of property businesses: lease premiums etc

Determinations affecting liability of more than one person

240Appeals against proposed determinations

1

Subsection (2) applies if it appears to an officer of Revenue and Customs that—

a

a determination is needed of an amount that is to be brought into account as a receipt under this Chapter in calculating the liability to tax of a person (“the first taxpayer”), and

b

the determination may affect the liability to corporation tax, income tax or capital gains tax of other persons.

2

The officer may give notice (a “provisional notice of determination”) to the first taxpayer and the other persons of—

a

the determination the officer proposes to make, and

b

their rights under this section and section 242.

3

A person to whom a provisional notice of determination is given may object to the proposed determination by giving notice (“a notice of objection”) to the officer.

4

The notice of objection must be given within 30 days of the date on which the provisional notice of determination was given.

5

If an officer gives provisional notices of determination and no person gives a notice of objection—

a

a determination must be made by the officer as proposed in the provisional notices, and

b

the determination is not to be called in question in any proceedings.

241Section 240: supplementary

1

A provisional notice of determination under section 240(2) may include a statement of the grounds on which the officer proposes to make the determination.

2

Subsection (1) applies despite any obligation as to secrecy or other restriction on the disclosure of information.

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242Determination by tribunal

1

If a notice of objection is given under section 240(3), the amount mentioned in section 240(1) must be determined in the same way as an appeal.

2

All persons to whom provisional notices of determination have been given under section 240(2) may F1be a party to—

a

any proceedings under subsection (1), and

b

any appeal arising out of those proceedings.

3

Those persons are bound by the determination made in the proceedings or on appeal, whether or not they have taken part in the proceedings.

4

Their successors in title are bound in the same way.