# Finance Act 1998, Paragraph 77J


(1) This paragraph applies where, after company A has given notice of consent to an allocation claim, company B has become liable to tax in consequence of receiving—
(a) notice of the withdrawal of consent, or a copy of a new notice of consent, under paragraph 77I(4), or
(b) a copy of a notice containing directions by an officer of Revenue and Customs under paragraph 77I(7).
(2) If any of the tax is unpaid 6 months after company B's time limit for allocation claims, an officer of Revenue and Customs may make an assessment to tax in the name of company B on any other company that has benefited as a result of the consent given by company A.
(3) The assessment may not be made more than two years after that time limit.
(4) The amount of the assessment must not exceed—
(a) the amount of the unpaid tax, or
(b) if less, the amount of tax which the other company saves by virtue of the consent.
(5) A company assessed to an amount of tax under sub-paragraph (2) is entitled to recover from company B—
(a) a sum equal to that amount, and
(b) any interest on that amount which it has paid under section 87A of the Taxes Management Act 1970 (interest on unpaid corporation tax).
(6) For the purposes of this paragraph, company B's time limit for allocation claims is the last of the dates mentioned in paragraph 77H(1) on which company B could make or withdraw an allocation claim for the accounting period for which the claim in question is made.

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Source: https://www.legislation.gov.uk/ukpga/1998/36/schedule/18/paragraph/77J (the official version)
Page: https://openlegislation.uk/finance-act-1998/schedule-18/paragraph-77J
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.