Finance (No. 2) Bill - continued        House of Commons
SCHEDULE 18, COMPANY TAX RETURNS, ASSESSMENTS AND RELATED MATTERS - continued

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  PART VII
  GENERAL PROVISIONS AS TO CLAIMS AND ELECTIONS
 
Claims must be quantified
     54. A claim under any provision of the Corporation Tax Acts for a relief, an allowance or a repayment of tax must be for an amount which is quantified at the time when the claim is made.
 
 
General time limit for making claims
     55. Subject to any provision prescribing a longer or shorter period, a claim for relief under any provision of the Corporation Tax Acts must be made within six years from the end of the accounting period to which it relates.
 
 
Supplementary claim or election
     56. A company which has made a claim or election under any provision of the Corporation Tax Acts (by including it in a return or otherwise) and subsequently discovers that a mistake has been made in it may make a supplementary claim or election within the time allowed for making the original claim or election.
 
 
Procedure for claim or election not included in return
     57. Schedule 1A to the Taxes Management Act 1970 applies as respects a claim or election made under any provision of the Corporation Tax Acts otherwise than by being included in a company tax return.
 
 
Consequential claims, etc. arising out of certain Revenue amendments or assessments
     58. - (1) Paragraphs 59 to 61 have effect to allow certain claims, elections, applications and notices to be made or given, or if previously given to be revoked or varied, where-
 
 
    (a) an amendment of a company tax return is made under paragraph 34(2)(b) (amendments of other returns required in consequence of closure notice) which has the effect of increasing the amount of tax payable by a company,
 
    (b) a discovery assessment is made, or
 
    (c) an assessment is made under paragraph 73 (recovery of excessive group relief).
      (2) Paragraphs 59 to 61 do not apply in relation to an assessment made in a case involving fraudulent or negligent conduct on the part of-
 
 
    (a) the company, or
 
    (b) a person acting on behalf of the company, or
 
    (c) a person who was a partner of the company at the relevant time.
       In such a case more limited provision is made by paragraph 62.
 
      (3) In paragraphs 59 to 61 "the relevant accounting period", in relation to the time limit for making a consequential claim, election, application or notice, means-
 
 
    (a) in relation to an amendment of a company tax return under paragraph 34(2)(b), the accounting period in which the closure notice was issued;
 
    (b) in relation to an assessment, the accounting period in which the assessment was made.
 
Consequential claims etc that may be made
     59. - (1) A claim, election, application or notice to which this paragraph applies-
 
 
    (a) may be made or given at any time within one year from the end of the relevant accounting period, or
 
    (b) if previously made or given may at any such time be revoked or varied-
 
      (i) in the same manner as it was made or given, and
 
      (ii) by or with the consent of the same person or persons who made, gave or consented to it (or, if a person has died, by or with the consent of his personal representatives),
 
    unless, by virtue of any enactment, it is irrevocable.
      (2) This paragraph applies to a claim, election, application or notice-
 
 
    (a) relating to the accounting period in respect of which the amendment or assessment is made, or
 
    (b) made or given by reference to an event occurring in that period,
  whose making, giving, revocation or variation has or could have the effect of reducing a relevant liability of the company.
 
      (3) The following are relevant liabilities of the company for this purpose-
 
 
    (a) the increased liability to tax resulting from the amendment or assessment;
 
    (b) any other liability to tax of the company-
 
      (i) for the accounting period to which the amendment or assessment relates, or
 
      (ii) for any subsequent accounting period ending not later than one year after the end of the relevant accounting period.
      (4) Where a claim, election, application or notice is made, given, revoked or varied by virtue of this paragraph, all such adjustments shall be made, whether by way of discharge or repayment of tax or the making of amendments, assessments or otherwise, as are required to take account of the effect of the taking of that action on any person's liability to tax for any chargeable period.
 
      (5) The provisions of the Taxes Management Act 1970 relating to appeals against decisions on claims apply with any necessary modifications to a decision on the revocation or variation of a claim by virtue of this paragraph.
 
      (6) This paragraph has effect subject to-
 
 
    paragraph 60 (consequential claims etc. affecting tax liability of another person), and
 
    paragraph 61 (consequential claims etc. not to give rise to reduction in liability).
 
Consequential claims etc. affecting tax liability of another person
     60. - (1) If the effect of the exercise by any person of a power conferred by paragraph 59 would be to alter the liability to tax of another person, the power may not be exercised except with the consent in writing of that other person or, if he has died, of his personal representatives.
 
      (2) Where such a power is exercised so as to increase the liability to tax of another person, neither paragraph 56 above nor section 43A of the Taxes Management Act 1970 (which makes corresponding provision in relation to income tax or capital gains tax) applies in relation to any amendment or assessment made because of that increased liability.
 
      (3) In this paragraph "tax" includes income tax or capital gains tax.
 
 
Consequential claims etc. not to give rise to reduction in liability
     61. - (1) If in any case-
 
 
    (a) one or more claims, elections, applications or notices are made, given, revoked or varied under paragraph 59 in consequence of an amendment or assessment, and
 
    (b) the total of the reductions in liability to tax resulting from that action would exceed the additional liability to tax resulting from the amendment or assessment,
  the excess is not available to reduce any liability to tax.
 
      (2) Where sub-paragraph (1) has the effect of limiting either-
 
 
    (a) the reduction in a person's liability to tax for more than one period, or
 
    (b) the reduction in the liability to tax of more than one person,
  the limited amount shall be apportioned between the periods or persons concerned.
 
      (3) The apportionment shall be made in such manner as the Inland Revenue may specify by notice in writing to the person or persons concerned, unless notice is given under the following provision.
 
      (4) If the person concerned gives (or the persons concerned jointly give) notice in writing to the Inland Revenue within the period of 30 days beginning with-
 
 
    (a) the day on which notice under sub-paragraph (3) is given to the person concerned, or
 
    (b) where more than one person is concerned, the latest date on which such notice is given to any of them,
  the apportionment shall be made in such manner as may be specified in the notice given by the person or persons concerned.
 
      (5) In this paragraph "tax" includes income tax or capital gains tax.
 
 
Consequential claims in case of fraud or negligence
     62. - (1) This paragraph applies where an assessment is made on a company in a case involving fraudulent or negligent conduct on the part of-
 
 
    (a) the company, or
 
    (b) a person acting on behalf of the company, or
 
    (c) a person who was a partner of the company at the relevant time.
      (2) If the company so requires, effect shall be given in determining the amount of the tax charged by the assessment to any relief or allowance to which the company would have been entitled for that accounting period on a claim or application made within the time allowed by the Taxes Acts.
 
 
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