Corporation Tax

Notification of uncertain tax treatment ― overview

Produced by Tolley
  • 05 May 2022 06:51

The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Notification of uncertain tax treatment ― overview
  • Introduction
  • The requirement to notify
  • What businesses are subject to the requirement to notify?
  • What is a ‘large company’ for these purposes?
  • Group companies
  • Which taxes are subject to the uncertain tax treatment notification?
  • What is an uncertain tax position?
  • First trigger ― provision in the accounts
  • Second trigger ― HMRC’s known position
  • More...

Notification of uncertain tax treatment ― overview

Introduction

For returns due on or after 1 April 2022, certain large companies and partnerships are required to notify HMRC where they adopt an uncertain tax treatment for corporation tax, VAT or income tax (both self assessment and amounts collected via PAYE).

The stated aim of the notification regime is to ensure that HMRC is aware of all cases where a large business has adopted a treatment that is contrary to HMRC’s known position and to bring forward the point at which discussions occur in relation to the tax treatment, thereby reducing what the Government refers to as the ‘legal interpretation tax gap’.

The notification requirement is one part of a series of measures aimed at improving the transparency in the approach large businesses take towards taxation, such as the sanctions for uncooperative behaviours and the requirement to publish tax strategies. For commentary on these, see the Sanctions for persistently uncooperative large businesses and Publication of tax strategies by large businesses guidance notes.

The regime applies to large (as defined) companies, partnerships and LLPs including both UK resident entities and non-UK resident entities that have a UK presence (for example, an overseas company with a UK permanent establishment).

Broadly, a large business is one with turnover above £200m and / or a gross balance sheet total above £2 billion in the previous financial year. For non-resident companies, the turnover and balance sheet amounts relate only to the UK presence of the business and there are specific

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

There's no margin for error. Think Tax.
Think Tolley.

TolleyGuidance gives you direct access to critical, comprehensive and up-to-date tax information and expertise you can rely on.

TAKE A FREE TRIAL

Popular Articles

Income tax during administration

Liability of the personal representativesAfter a person’s death, the property of the deceased is vested in the personal representatives (PRs) to enable them to manage and distribute the estate in accordance with the Will or the terms of intestacy. See the Personal representatives guidance note.The

23 Mar 2022 10:52 | Produced by Tolley Read more Read more

Trading losses carried forward

The reform of corporate losses within Finance (No 2) Act 2017 included a mixture of relaxations to the use of losses within the previous regime which applied before 1 April 2017 and also a major restriction (50% for most companies) on the amount of profits after 1 April 2017 that can be covered by

19 May 2022 08:21 | Produced by Tolley Read more Read more

Loan notes and qualifying corporate bonds (QCBs) and non-QCBs

On the disposal of the shares in a company, a seller may receive loan stock in the acquiring company as consideration or part consideration for the sale. For tax purposes, loan notes are either qualifying corporate bonds (QCBs) or non-QCBs (NQCBs). The expression ‘corporate bond’ is a general

23 Mar 2022 11:05 | Produced by Tolley Read more Read more