Corporation Tax Act 2010 section 648

Adjustments of liability

Section 648 explains how a co-operative housing association's corporation tax liability can be adjusted when a claim has been made for tax relief on members' rent and interest, or for exemption on property sale gains.

• Where a housing association makes a claim to disregard rent from members or interest payable, or to exempt gains on property sales, any resulting adjustment to its corporation tax liability can be made by assessment, repayment of tax, or other appropriate means.
• If a claim is included in the association's company tax return and HMRC opens an enquiry that leads to an amendment of that return, the association's corporation tax liability can be adjusted accordingly by assessment or otherwise.
• Similarly, if HMRC enquires into a standalone claim (or an amendment to such a claim) made outside the tax return and the claim is amended as a result, the corporation tax liability can be adjusted by assessment or otherwise.
• Any such adjustments arising from an enquiry may be made for all relevant accounting periods, not just the period in which the original claim was made.