Corporation Tax Act 2010 section 713

Recovery of unpaid corporation tax for accounting period ending on or after change

Section 713 allows HMRC to recover unpaid corporation tax from a person linked to a company that has undergone a change of ownership, where the tax relates to an accounting period ending on or after that change.

• Where a company has changed ownership and corporation tax assessed on it (or an associated company) for a period ending on or after the change remains unpaid more than six months after assessment, HMRC can pursue recovery from a linked person
• The linked person can be assessed and charged up to the amount of corporation tax that remains unpaid, but HMRC has discretion over whether to make such an assessment
• The assessment is made in the name of the company that owes the unpaid tax, and must be raised within three years of the final determination of that company's corporation tax liability for the relevant accounting period
• The expectation condition in section 714 must also be satisfied before HMRC can use this recovery power