Income Tax Act 2007 section 681DK

Manner of apportionment

Section 681DK sets out how disputes about the apportionment of payments or capital sums between multiple parties are to be resolved when the apportionment affects the tax liabilities of two or more persons.

• When a payment or sum must be apportioned under the sale and leaseback rules (section 681DJ for income tax or section 880 of CTA 2010 for corporation tax), and that apportionment is material to the tax liabilities of two or more persons, a dispute about how the apportionment should be carried out is resolved through the tribunal process, in the same way as a tax appeal.
• The apportionment must be material to the income tax or corporation tax liability of at least two persons (collectively referred to as "the set") for the tribunal procedure to apply.
• There must also be a genuine question about how the payment or sum should be divided, and the apportionment must be material to the income tax liability of at least one person in the set.
• All persons in the set are entitled to be a party to the tribunal proceedings, ensuring that everyone whose tax position is affected has the opportunity to make representations.