Corporation Tax Act 2010 section 464D

Section 464C: supplementary

Section 464D provides supplementary rules supporting the restriction of relief on repayments and return payments under section 464C, including how assessments are made, when tax returns must be corrected, and how benefits conferred on participators are treated as loans for these purposes.

• HMRC may make or amend assessments as necessary to give effect to the restriction of relief under section 464C.
• If a tax return becomes incorrect because of section 464C, the person must notify HMRC and explain the needed correction within three months of becoming aware of the error.
• A "chargeable payment" for section 464C purposes includes both loans or advances by a close company taxed under section 455, and benefits conferred on a participator taxed under section 464A.
• Where a benefit is conferred on a participator, it is treated as a loan equal to the benefit's value, and any qualifying return payment under section 464B is treated as a repayment of that deemed loan.