Taxation (International and Other Provisions) Act 2010 section 185

Notice to potential claimants

Section 185 requires HMRC to notify a disadvantaged person when a transfer pricing adjustment has been made that may entitle them to claim compensating relief or to participate in appeal proceedings.

• When HMRC issues a formal notice (such as a closure notice or discovery assessment) that reflects a transfer pricing adjustment, they must identify any person who may be disadvantaged by that adjustment.
• HMRC must then give the disadvantaged person a notice containing the particulars of the transfer pricing determination, so they are aware of their potential entitlement to claim relief.
• A disadvantaged person is someone who is either entitled to make or amend a compensating claim under section 174, or who has the right to be a party to any appeal proceedings relating to the determination.
• If HMRC fails to issue the required notice to the disadvantaged person, this does not invalidate the original notice or the transfer pricing determination itself.