Corporation Tax Act 2010 section 656

Adjustments of liability

Section 656 explains how a self-build society's corporation tax liability can be adjusted when claims for rent disregard or land disposal exemptions are reviewed or amended.

• Where a claim under section 651 (disregard of rent from members) requires a change to the society's tax position, the adjustment can be made by assessment, repayment of tax, or other appropriate means.
• If a claim under section 651 or section 652 (exemption for gains on disposals of land to members) is included in a company tax return and HMRC opens an enquiry that results in an amendment to the return, the society's corporation tax liability can be adjusted accordingly.
• Similarly, if HMRC opens a standalone enquiry into such a claim (or an amendment to such a claim) outside the tax return process, and the claim is subsequently amended, the society's liability can also be adjusted.
• Any adjustments arising from an enquiry into either a tax return or a standalone claim can be applied across all relevant accounting periods, not just the period in which the original claim was made.