Taxation (International and Other Provisions) Act 2010 section 255

Notices given before tax return made

Section 255 deals with what happens when HMRC issues a deduction notice or receipt notice under the tax arbitrage rules before the company has filed its company tax return for the relevant accounting period.

• Where HMRC issues a deduction notice or receipt notice before the company has submitted its tax return, the company must take that notice into account when preparing and filing its return.
• The notice effectively instructs the company how to treat certain deductions or receipts in the return it is about to make.
• Deduction notices and receipt notices are issued by officers of HMRC, rather than by the Commissioners themselves.
• This provision ensures the tax arbitrage rules work smoothly within the Self Assessment framework by connecting the notice process to the return-filing process.