Taxation (International and Other Provisions) Act 2010 section 254

Rule for calculation or recalculation of income etc. following receipt notice

Section 254 sets out the rule for how income, chargeable gains or corporation tax liability should be calculated or recalculated after a receipt notice has been issued.

• When a receipt notice is given, the affected person's income, chargeable gains or corporation tax liability must be calculated or recalculated in accordance with this rule.
• The calculation or recalculation takes into account the actual amounts received or receivable, as identified by the receipt notice, rather than the amounts originally used.
• This ensures that the tax position is corrected to reflect the true economic outcome once the actual receipt or entitlement becomes known.
• The rule applies to corporation tax and aligns the tax computation with the revised figures arising from the receipt notice process.

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