Corporation Tax Act 2010 section 269DK

Excessive specifications of available surcharge allowance

Section 269DK deals with what happens when a banking company claims too much surcharge allowance in its corporation tax return, requiring amendment of the return and giving HMRC the power to raise assessments where necessary.

• Where a banking company's tax return specifies an amount as its surcharge allowance (or an amount for CFC charge purposes) but the relevant allocation requirements are not met, the company must amend its return to correct the position as far as it is able to do so.
• If an HMRC officer considers that the failure to meet the allocation requirement has resulted in an insufficient surcharge or CFC charge being levied on the company, the officer may raise an assessment for the amount that should have been charged.
• This assessment power does not replace or limit HMRC's separate power to make a discovery assessment under the normal corporation tax self-assessment rules.
• Where the need to amend arises because the company's group surcharge allowance allocation has been altered, any assessment made by HMRC is still in time provided it is raised within 12 months of the date on which that alteration took place.