Corporation Tax Act 2009 section 127F

Time limits etc. for spreading claim

Section 127F sets out the time limits for making a claim to spread compensation received for the compulsory slaughter of animals, and the rules for adjusting tax assessments after they have been finalised.

• A spreading claim must be made no later than one year after the filing date for the farm company's tax return for the accounting period in which the compensation was received (period X).
• If profits for any accounting period need to be adjusted under the spreading rules after an assessment for that period has become final, any necessary assessment, repayment, or discharge of tax must still be carried out.
• However, any repayment or discharge of tax will only be made if the company submits a formal claim for it.
• The rules ensure that spreading adjustments can still take effect even after assessments are closed, but place the responsibility on the company to actively claim any resulting tax relief.