{
  "url": "https://openlegislation.uk/finance-act-2007/schedule-24/paragraph-5",
  "json_url": "https://openlegislation.uk/finance-act-2007/schedule-24/paragraph-5.json",
  "legislation": "ukpga/2007/11",
  "legislation_title": "Finance Act 2007",
  "legislation_url": "https://openlegislation.uk/finance-act-2007",
  "path": "schedule/24/paragraph/5",
  "kind": "paragraph",
  "number": "5",
  "heading": null,
  "text": "(1) “The potential lost revenue” in respect of an inaccuracy in a document (including an inaccuracy attributable to a supply of false information or withholding of information) or a failure to notify an under-assessment is the additional amount due or payable in respect of tax as a result of correcting the inaccuracy or assessment.\n(2) The reference in sub-paragraph (1) to the additional amount due or payable includes a reference to—\n(a) an amount payable to HMRC having been erroneously paid by way of repayment of tax, and\n(b) an amount which would have been repayable by HMRC had the inaccuracy or assessment not been corrected.\n(3) In sub-paragraph (1) “tax” includes national insurance contributions.\n(4) The following shall be ignored in calculating potential lost revenue under this paragraph—\n(za) any CIR alteration, other than a permitted reduction, in respect of the tax period to which the document relates,\n(a) group relief, and\n(b) any relief under section 458 of CTA 2010 (relief in respect of repayment etc of loan) which is deferred under subsection (5) of that section;\n(but this sub-paragraph does not prevent a penalty being charged in respect of an inaccurate claim for relief).\n(5) For the purposes of sub-paragraph (4)(za)—\n(a) a “CIR alteration” means an alteration made to an amount disallowed, or reactivated, under Part 10 of the Taxation (International and Other Provisions) Act 2010 as a result of the submission of a revised interest restriction return under paragraph 8(4) of Schedule 7A to that Act;\n(b) a CIR alteration is a “permitted reduction” if it has the effect of—\n(i) reducing the allocated disallowance of a company by no more than the relevant proportion, or\n(ii) increasing the allocated reactivation of a company by no more than the relevant proportion.\n(c) the “relevant proportion” is—\n(i) for the purposes of paragraph (b)(i), the proportion by which the total disallowed amount of the worldwide group for the period is reduced, as a result of the submission of the revised interest restriction return;\n(ii) for the purposes of paragraph (b)(ii) the proportion by which the interest reactivation cap of the worldwide group is increased, as a result of the submission of the revised interest restriction return.\n(6) In sub-paragraph (5), the following terms have the same meaning as in Part 10 of the Taxation (International and Other Provisions) Act 2010—\n“allocated disallowance” (see paragraph 22(2) of Schedule 7A to that Act);\n“allocated reactivation” (see paragraph 25(2) of that Schedule);\n“total disallowed amount of the worldwide group” and “interest reactivation cap of the worldwide group” (see section 373 of that Act).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in Sch. 24 para. 5(1) inserted (1.4.2009) by Finance Act 2008 (c. 9), s. 122(2), Sch. 40 para. 7; S.I. 2009/571, art. 2"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Sch. 24 para. 5(4)(za) inserted (with effect in accordance with Sch. 3 paras. 30-36 of the amending Act) by Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 26(2)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Sch. 24 para. 5(4)(b) substituted (21.7.2009) by Finance Act 2009 (c. 10), Sch. 57 para. 3"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in Sch. 24 para. 5(4)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 575(a) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in Sch. 24 para. 5(4)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 575(b) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Sch. 24 para. 5(5)(6) inserted (with effect in accordance with Sch. 3 paras. 30-36 of the amending Act) by Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 26(3)"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "Sch. 24 para. 5 applied (3.11.2017) by The Sections 106B, 106C and 106D of the Taxes Management Act 1970 (Specified Threshold Amount) Regulations 2017 (S.I. 2017/988), regs. 1, 4(c), 8, 9"
    },
    {
      "type": "I",
      "label": "I1",
      "text": "Sch. 24 para. 5 in force at 1.4.2008 for certain purposes, 1.7.2008 for certain purposes, 1.1.2009 for certain purposes, and 1.4.2009 in so far as not already in force by S.I. 2008/568, art. 2 (with art. 3)"
    }
  ],
  "outstanding_effects": [
    {
      "type": "word substituted",
      "affecting": "ukpga/2015/11",
      "affecting_title": "Finance Act 2015"
    },
    {
      "type": "substituted",
      "affecting": "ukpga/2015/11",
      "affecting_title": "Finance Act 2015"
    },
    {
      "type": "substituted",
      "affecting": "ukpga/2015/11",
      "affecting_title": "Finance Act 2015"
    },
    {
      "type": "inserted",
      "affecting": "ukpga/2015/11",
      "affecting_title": "Finance Act 2015"
    },
    {
      "type": "inserted",
      "affecting": "ukpga/2015/11",
      "affecting_title": "Finance Act 2015"
    },
    {
      "type": "word substituted",
      "affecting": "ukpga/2015/11",
      "affecting_title": "Finance Act 2015"
    },
    {
      "type": "word substituted",
      "affecting": "ukpga/2015/11",
      "affecting_title": "Finance Act 2015"
    },
    {
      "type": "word substituted",
      "affecting": "ukpga/2015/11",
      "affecting_title": "Finance Act 2015"
    },
    {
      "type": "words substituted",
      "affecting": "ukpga/2015/11",
      "affecting_title": "Finance Act 2015"
    },
    {
      "type": "substituted for Sch. 24 para. 4A(1)",
      "affecting": "ukpga/2015/11",
      "affecting_title": "Finance Act 2015"
    },
    {
      "type": "words inserted",
      "affecting": "ukpga/2015/11",
      "affecting_title": "Finance Act 2015"
    },
    {
      "type": "word substituted",
      "affecting": "ukpga/2015/11",
      "affecting_title": "Finance Act 2015"
    },
    {
      "type": "inserted",
      "affecting": "ukpga/2015/11",
      "affecting_title": "Finance Act 2015"
    },
    {
      "type": "omitted",
      "affecting": "ukpga/2024/3",
      "affecting_title": "Finance Act 2024"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2007/11/schedule/24/paragraph/5",
    "retrieved_at": "2026-10-29T09:12:51.142391+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}