Corporation Tax Act 2010 section 357YNA

Transfer of rights: restitution interest arising after a winding up or dissolution

Section 357YNA deals with what happens when restitution interest arises but the company originally entitled to it has either been dissolved or wound up, allowing HMRC to redirect the tax charge to a related company.

• Where restitution interest would be treated as arising to a company that no longer exists (dissolved), HMRC can issue a notice to a related company, making that related company liable for corporation tax on the restitution interest instead
• Where restitution interest would be treated as arising to a company that has been wound up, HMRC can similarly redirect the tax liability to a related company by issuing a notice
• Any notice issued by HMRC must specify the amount of the restitution interest and the date on which it is paid or payable
• The notice must be given by the later of the date the restitution interest is paid or payable, or the time when any related assessment notice has been given to the related company