Corporation Tax Act 2009 section 795

Recovery of charge from another group company or controlling director

Section 795 provides HMRC with the power to recover unpaid corporation tax arising from a degrouping charge on intangible fixed assets from other group companies or controlling directors when the company originally liable fails to pay.

• If corporation tax from a degrouping charge remains unpaid six months after it became due, HMRC can serve a notice requiring payment from other parties connected to the liable company.
• The amount recoverable is the lesser of the corporation tax attributable to the degrouping charge or the total corporation tax still outstanding for the relevant accounting period.
• Where the liable company was a group member, HMRC can pursue the principal company of the group and any other group company that owned the relevant intangible asset within the 12 months before the degrouping event.
• Where the liable company is non-UK resident, HMRC can pursue any controlling director of that company, or of a company that controls or controlled it within the preceding 12 months.