Income Tax (Trading and Other Income) Act 2005 section 381D

Avoidance of double taxation

Section 381D provides a mechanism to prevent double taxation where a return that is already subject to income tax under the disguised interest rules is also subject to another tax.

• Where both income tax under the disguised interest chapter and another tax are charged on the same return, the taxpayer may claim consequential adjustments to eliminate the double charge
• An HMRC officer must make whichever of the claimed adjustments are just and reasonable
• Adjustments can be made for any period and by any method, including assessments, modifications of assessments, or amendments of claims
• Normal statutory time limits do not restrict the making of these adjustments