Corporation Tax Act 2009 section 75

Retraining courses: recovery of tax

Section 75 deals with the recovery of corporation tax where a deduction previously allowed for retraining course expenditure turns out to have been incorrectly given because certain conditions were not met after the event.

• Where a corporation tax deduction was allowed for retraining course costs under section 74, but the former employee either fails to start the course within one year of leaving employment, or remains in or returns to the employer's employment, the tax relief must be clawed back
• HMRC may raise an assessment for the additional corporation tax that becomes due as a result of the conditions no longer being satisfied
• Any such assessment must be made within 6 years of the end of the accounting period in which the failure to meet the relevant condition occurred
• The employer must notify HMRC within 60 days of becoming aware that the employee has failed to start the course, has continued in employment, or has been re-employed