Corporation Tax Act 2009 section 797

Recovery under section 795: procedure etc.

Section 797 sets out the procedural rules for recovering unpaid corporation tax on a degrouping charge from another group company or a controlling director under section 795.

• HMRC's recovery notice can require payment within 30 days and must state the degrouping charge tax amount, the unpaid corporation tax, the date it first became payable, and the amount the recipient must pay.
• The notice is treated as if it were a formal tax assessment, meaning HMRC can pursue recovery of the amount and any interest, and the recipient has the right to appeal.
• A person who pays an amount under such a notice has the right to recover that amount from the company that originally incurred the degrouping charge (referred to as "A").
• Any payment made under a recovery notice cannot be deducted as an expense when calculating income, profits or losses for any tax purposes.