Taxation of Chargeable Gains Act 1992 section 184I

Notices under sections 184G and 184H

Section 184I sets out the procedural rules governing when and how HMRC may issue notices under sections 184G and 184H (which counter avoidance schemes involving losses that convert income to capital or secure deductions), and the consequences for a company's tax return once such a notice is received.

• HMRC may issue a notice before or after a company tax return has been filed; if issued before the return, the company may initially file ignoring the notice but must amend within 90 days to comply
• Where the return has already been filed, a notice can only be issued if an enquiry has been opened into that return, and after enquiries are completed, stricter conditions (Requirements A and B) must be met
• Once a notice is received, the company has a 90-day window to amend its return to reflect the effect of the anti-avoidance provisions, and during that period HMRC cannot issue a closure notice or make a discovery assessment in respect of the relevant gain
• If the company fails to amend its return within the 90-day period when it should have done so, the return is treated as incorrect, with potential penalty consequences