Corporation Tax Act 2009 section 607C

Avoidance of double charge

Section 607C provides a mechanism for a company to claim relief where the operation of the derivative contract continuation rules would otherwise result in the same amount being taxed twice.

• Where section 607A requires a company to bring in a credit that has already been taxed elsewhere — whether as a credit in another company's derivative contracts computation, in a controlled foreign company's assumed taxable profits, or as income tax on an individual — a potential double charge arises.
• The affected company may make a claim to HMRC for one or more consequential adjustments to eliminate the double taxation on that credit amount.
• An HMRC officer must make whichever of the claimed adjustments are considered just and reasonable in the circumstances.
• Adjustments can relate to any period, can take any form (such as an assessment, modification of an assessment, or amendment of a claim), and are not restricted by any statutory time limits.