D2.727 Process for imposing the charge
The DPT charge is imposed by HMRC issuing a charging notice to the company1. Before issuing a charging notice, HMRC must issue a preliminary notice setting out the details of the proposed charge2.
Where HMRC have reason to believe that the company is liable to the DPT they must issue a preliminary notice for the relevant period3. A preliminary notice can only be issued4:
(a) no more than six months after the last day on which an amendment to the company tax return for the relevant accounting period can be made (ignoring any exceptions to the standard period set out in FA 1998, Sch 18, para 15(4)5) for a DPT charge under FA 2015, s 80 (UK company: involvement of entities or transactions lacking economic substance) or FA 2015, s 81 (Non-UK company: involvement of entities or transactions lacking economic substance), or
(b) within 24 months of the end of the relevant accounting period for a DPT charge under FA 2015, s 86 (Non-UK company avoiding a UK taxable presence)
although in each case this is extended to four years where notification has not been given to HMRC by the company, and HMRC have reason to believe that DPT should have been charged for that period6.
Before amendment by FA 2019, the preliminary notice could only be issued within 24 months of the end of the relevant accounting period (with the possible four year extension) in all cases. The amendments have effect where the
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