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Paragraph 31 C1C2

United Kingdom

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

This paragraph applies if a company amends its company tax return at a time when an enquiry F1into the return is in progress in relation to any matter to which the amendment relates or which is affected by the amendment.

(2)

The amendment does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry.

C3C4C5(3)

So far as the amendment affects—

(a)

the amount stated in the company’s self-assessment as the amount of tax payable, or

(b)

any amount that affects or may affect—

(i)

the tax payable by the company for another accounting period, or

(ii)

the tax liability of another company for any accounting period,

it does not take effect F2while the enquiry is in progress in relation to any matter to which the amendment relates or which is affected by the amendment.

This does not affect any claim by the company under section 59DA of the M1Taxes Management Act 1970 (claim for repayment in advance of liability being established).

(4)

An amendment whose effect is deferred under sub-paragraph (3) takes effect as follows—

(a)

if the conclusions in F3a partial or final closure notice state either—

(i)

that the amendment was not taken into account in the enquiry, or

(ii)

that no amendment of the return is required arising from the enquiry,

the amendment takes effect F4when a partial closure notice is issued in relation to the matters to which the amendment relates or which are affected by the amendment or, if no such notice is issued, a final closure notice is issued;

F5(b)

in any other case, the amendment takes effect as part of the amendments made by the closure notice.

(5)

For the purposes of this paragraph the period during which an enquiry is in progress F6in relation to any matter is the whole of the period—

(a)

beginning with the day on which F7an officer of Revenue and Customs F8gives notice of enquiry into the return, and

(b)

ending with the day on which F9a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued.

Annotations

Textual amendments

F1

Words in Sch. 18 para. 31(1) substituted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 25(2)

F2

Words in Sch. 18 para. 31(3) substituted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 25(3)

F3

Words in Sch. 18 para. 31(4)(a) substituted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 25(4)(a)

F4

Words in Sch. 18 para. 31(4)(a) substituted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 25(4)(b)

F5

Sch. 18 para. 31(4)(b) substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 119(5)(13); S.I. 2009/405, art. 2

F6

Words in Sch. 18 para. 31(5) inserted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 25(5)(a)

F7

Words in Sch. 18 substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 68(a); S.I. 2005/1126, art. 2(2)(h)

F8

Words in Sch. 18 substituted (18.4.2005) by virtue of Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 68(c); S.I. 2005/1126, art. 2(2)(h)

F9

Words in Sch. 18 para. 31(5) substituted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 25(5)(b)

Marginal citations

M1

1970 c. 9.

Modifications

C1

Sch. 18 paras. 31-34 applied (with modifications) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Lloyds Underwriters (Tax) Regulations 2005 (S.I. 2005/3338), regs. 1(1), 5

C2

Sch. 18 para. 31 applied (8.4.2010) by Finance Act 2010 (c. 13), Sch. 1 para. 23(5)(c)

C3

Sch. 18 para. 31(3) excluded (with effect in accordance with s. 28(5) of the amending Act) by 2015 c. 11, s. 101B(3) (as inserted by Finance Act 2022 (c. 3), s. 28(3)(b))

C4

Sch. 18 para. 31(3) excluded (with effect in accordance with s. 28(5) of the amending Act) by 2015 c. 11, s. 101A(3) (as inserted by Finance Act 2022 (c. 3), s. 28(2)(b))

C5

Sch. 18 para. 31(3) excluded (for accounting periods beginning on or after 1.1.2026) by 2010 c. 8, s. 217I(6), Sch. A1 para. 14(4) (as inserted by Finance Act 2026 (c. 11), s. 46(2), Sch. 5 para. 1(1)(2))

Notes on Schedule 18

Modifications

C1

Sch. 18 restricted (31.7.1998) by 1988 c. 1, s. 754B(10) (as inserted (31.7.1998 with effect as mentioned in Sch. 17 para. 37 of 1998 c. 36) by 1998 c. 36, s. 113, Sch. 17 para. 11)

C2

Sch. 18 modified (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 68(c); S.I. 2005/1126, art. 2(2)(h)

C3

Sch. 18 applied (20.7.2005) by Finance (No. 2) Act 2005 (c. 22), s. 61

C4

Sch. 18 applied (with modifications) (6.4.2006) by The Registered Pension Schemes (Accounting and Assessment) Regulations 2005 (S.I. 2005/3454), regs. 1, 13

C5

Sch. 18 excluded (17.7.2013) by Finance Act 2013 (c. 29), s. 210(6)(b)

C6

Sch. 18: power to amend conferred (12.2.2019) by Finance Act 2019 (c. 1), s. 87(5)(a)(6)

C7

Sch. 18 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 11(4) (with Sch. 16 para. 11(5))

C8

Sch. 18 applied (with modifications) (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 303(7)(8) (with s. 303(6))