Taxation (International and Other Provisions) Act 2010 section 80

Duty to give notice that adjustment has rendered credit excessive

Section 80 requires a taxpayer to notify HMRC when a foreign tax credit they have already received is subsequently reduced or becomes excessive due to an adjustment in the amount of foreign tax payable.

• Where a person has been allowed a credit for foreign tax under a double taxation arrangement, and that credit is later reduced or becomes excessive due to an adjustment in the foreign tax payable, the person must notify HMRC.
• The notice must be given to an officer of Revenue and Customs within one year of the reduction or adjustment being made; for capital gains tax purposes, the notice must be in writing.
• Failure to give the required notice within the deadline can result in a penalty of up to the amount by which the credit was reduced or became excessive.
• The notification requirement does not apply where the reduction or adjustment is a "Lloyd's adjustment" — that is, one whose consequences are dealt with under regulations governing individual or corporate members of Lloyd's.