Part 8

Intangible fixed assets
Chapter 9

Application of this Part to groups of companies

Reallocation of degrouping charge within group and recovery

Recovery of charge from another group company or controlling director
795
1
This section applies if—
a
a company (“A”) is liable to a degrouping charge,
b
an amount of corporation tax has been assessed on A for the relevant accounting period, and
c
the whole or part of that amount is unpaid at the end of the period of 6 months after the time when it became payable.
2
An officer of Revenue and Customs may serve a notice on the persons to whom this subsection applies (see subsections (3) and (4)) requiring them to pay the lesser of—
a
the amount of corporation tax referable to the degrouping charge (see section 796(2)), or
b
the amount that remains unpaid of the corporation tax payable for the relevant accounting period by A.
3
If A was a member of a group at the relevant time, subsection (2) applies to—
a
a company that was at that time the principal company of the group, and
b
any other company that at any time in the period of 12 months ending with the relevant time—
i
was a member of that group, and
ii
owned the relevant asset or any part of it.
4
If at the relevant time A is not UK resident ... , subsection (2) applies to any person who is a controlling director—
a
of A,
b
of a company that has control of A,
c
of a company that had control of A within the period of 12 months ending with the relevant time,
or was such a controlling director during that period.
5
Section 796 applies for the interpretation of this section and in that section references to “A” must be read in accordance with this section.
Pt. 8 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 6(1)
Words in s. 795(4) omitted (6.4.2020) by virtue of Finance Act 2019 (c. 1), Sch. 5 paras. 26, 35 (with Sch. 5 para. 36)
Pt. 8 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)
Pt. 8 modified (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(1); S.I. 2011/2329, art. 3
Pt. 8 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
Pt. 8 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 1(3); S.I. 2012/628, art. 3(b)
Pt. 8 modified (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 35, 45 (with Sch. 5 para. 36)
Pt. 8 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(1); S.I. 2011/2576, art. 5