Taxation (International and Other Provisions) Act 2010 section 40

Notice of enquiry

Section 40 sets out the rules under which HMRC may open an enquiry into an interest restriction return, including limitations on repeat enquiries and the interaction with company tax return enquiries.

• HMRC may enquire into an interest restriction return by giving formal notice of enquiry to the reporting company.
• Generally, only one enquiry may be opened into a particular return, but a fresh enquiry may be opened into a revised return even if the original return was already under enquiry.
• An enquiry into an interest restriction return does not prevent HMRC from separately opening or continuing an enquiry into the company tax return of any group member for the same period.
• Amendments to a company's own tax return may be required as a result of the interest restriction return enquiry, even if that company's own tax return enquiry has already been closed.