Corporation Tax Act 2009 section 330C

Avoidance of double charge

Section 330C provides a mechanism to prevent the same loan relationship credit from being taxed twice when the deemed continuation rule in section 330A requires a company to recognise a credit that has already been taxed elsewhere.

• Where section 330A requires a company to bring in a credit that has already been taxed — whether as a loan relationship credit in another company, as part of a controlled foreign company's assumed profits, or as income tax on an individual — there is a risk of double taxation on the same amount.
• The company facing the double charge may make a claim to HMRC for one or more consequential adjustments to the credit it is required to bring into account, in order to eliminate the duplication.
• An HMRC officer must make whichever of the adjustments claimed are considered just and reasonable in the circumstances.
• These adjustments can be made for any accounting period, by way of assessment, modification of an assessment, amendment of a claim, or any other means, and are not restricted by any statutory time limits that would otherwise apply.