Taxation (International and Other Provisions) Act 2010 section 5

Appointment by officer of Revenue and Customs of replacement reporting company

Section 5 allows an HMRC officer to revoke the appointment of a reporting company for a worldwide group and appoint a replacement, either where the existing reporting company has failed or is expected to fail to meet its obligations, or where it has consented to the change.

• HMRC may replace the reporting company if it has not complied with, or is not expected to comply with, its obligations under the interest restriction rules, or if the reporting company has agreed to be replaced.
• The replacement must be carried out by formal notice, which is sent to both the outgoing and incoming reporting companies and must identify the relevant period of account.
• Once the replacement takes effect, the original appointment ceases for the relevant period of account and all subsequent periods, and the new company takes over as reporting company from the relevant period onwards.
• The replacement company must be eligible — meaning it was a UK group company at some point during the relevant period of account and was not dormant throughout that period.