Taxation (International and Other Provisions) Act 2010 section 72

Consequential claims to company tax returns

Section 72 allows a company to make, revoke or vary certain tax claims within one year of receiving an HMRC closure notice or determination relating to an interest restriction return, where the resulting amendment to the company's tax return increases its corporation tax liability.

• When a company's tax return is amended following an HMRC closure notice or determination on an interest restriction return, and this increases the corporation tax payable, the company has one year to make new qualifying claims or revoke/vary existing ones to reduce that additional liability.
• A qualifying claim is one that reduces the company's corporation tax for the relevant accounting period, but it must not affect any other person's tax liability, and the total tax reductions claimed cannot exceed the additional corporation tax arising from the amendment.
• If an existing claim is revoked or varied, this must be done in the same way it was originally made and by (or with the consent of) the same persons who made it, or their personal representatives if they have died.
• The term "claim" is used broadly to include elections, applications and notices, and "tax" includes income tax and capital gains tax as well as corporation tax, so that all necessary consequential adjustments across different taxes and periods can be made.