Taxation of Chargeable Gains Act 1992 section 190

Tax recoverable from another group company or controlling director

Section 190 allows HMRC to recover unpaid corporation tax on chargeable gains from other group companies or controlling directors when the company that made the gain fails to pay.

• Where a company has an unpaid corporation tax liability on a chargeable gain that remains outstanding more than six months after the due date, HMRC can pursue payment from other parties connected to the company.
• If the company was part of a group, HMRC can serve a notice on the principal company of that group, or on any other group member that owned the asset (or part of it) at any point in the twelve months before the gain arose.
• If the company was not UK-resident, HMRC can serve a notice on any controlling director of the company, or any controlling director of a company that controlled it, provided they held that role at any time in the twelve months before the gain arose.
• Any person who pays tax under such a notice has a right to recover that amount from the original taxpayer company, but the payment itself cannot be deducted in computing income, profits or losses for any tax purpose.