Corporation Tax Act 2009 section 798

Recovery under section 795: time limit

Section 798 sets a strict three-year time limit within which HMRC must serve a notice to recover unpaid corporation tax from another group company or a controlling director under the group intangible fixed assets rules.

• A recovery notice under section 795 must be served within three years of the date on which the original company's corporation tax liability for the relevant accounting period is finally determined.
• The start date of the three-year window depends on how the unpaid tax arose — whether through an HMRC determination (where no return was delivered or the return was incomplete), a self-assessment, or a discovery assessment.
• Where the tax arises from a self-assessment, the three-year period starts from the latest of several possible dates, including the deadline for opening an enquiry, 30 days after an enquiry is completed, 30 days after any HMRC amendment, or 30 days after an appeal against such an amendment is finally determined.
• Where the tax arises from a discovery assessment, the three-year period starts either when the tax becomes due and payable (if there is no appeal) or when the appeal is finally determined.