Taxation (International and Other Provisions) Act 2010 section 45

Amendment of self-assessment during enquiry to prevent loss of tax

Section 45 allows HMRC to amend a company's self-assessment during an enquiry into an interest restriction return where there is a risk that tax will otherwise be lost.

• If HMRC is enquiring into an interest restriction return and believes a group company's self-assessment understates the tax due — and that the shortfall relates to matters covered by the enquiry — the officer may amend the self-assessment to correct the deficiency, provided there would otherwise likely be a loss of tax.
• The company whose self-assessment is amended must have been a member of the group at some point during the period of account to which the interest restriction return relates.
• The company may appeal against the amendment within 30 days of being notified, by giving notice to the HMRC officer who issued it. However, no further steps — such as requesting a review or notifying the appeal to a tribunal — can be taken until the enquiry is completed.
• "Self-assessment" for these purposes has the same meaning as in paragraph 7 of Schedule 18 to the Finance Act 1998, which deals with company tax returns.