Corporation Tax Act 2010 section 743

Preliminary notification that section 733 may apply

Section 743 requires HMRC to give a company advance warning before taking action to counteract a corporation tax advantage obtained through transactions in securities.

• An HMRC officer must notify a company if they believe the company has obtained a corporation tax advantage through transactions in securities that should be counteracted.
• The notification must identify the specific transaction or transactions in question.
• This preliminary notification is a required step before HMRC can formally serve a counteraction notice on the company.
• If the company disagrees that the counteraction rules apply, it has a right to challenge the notification through a statutory declaration process or a tribunal determination.