Corporation Tax Act 2010 section 746

Counteraction notices

Section 746 sets out the circumstances in which HMRC may issue a counteraction notice to cancel a corporation tax advantage obtained through transactions in securities, and specifies the types of adjustments that can be made.

• HMRC may counteract a corporation tax advantage if a company fails to respond with a statutory declaration within 30 days of receiving a preliminary notification, or if a tribunal determines there is a prima facie case for doing so.
• The adjustments and their basis must be set out in a formal "counteraction notice" served on the company by an HMRC officer.
• Permitted adjustments include raising an assessment, cancelling a repayment right, requiring return of a repayment already made, or recalculating profits, gains, or corporation tax liability.
• No assessment under this section may be made more than 6 years after the accounting period to which the corporation tax advantage relates.