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HMRC internal manual

International Manual

From
HM Revenue & Customs
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Controlled Foreign Companies: Management and collection of a CFC charge and reliefs available against a CFC charge: Recovery of sum charged from other UK resident companies

Recovery of sum charged from other UK resident companies

TIOPA10/S371UF applies if a sum charged on a company (the defaulting company) under step 5 of TIOPA10/S371BC(1) is not fully paid at the due and payable date under the Taxes Acts. It allows an officer of HMRC to give notice of liability to another UK company, which holds, or has held (directly or indirectly) the whole or any part of the same interest (the corresponding part) in the CFC concerned as is or was held by the defaulting company.

On issue of a notice to this company (the responsible company) the following are payable by the responsible company:

  • the whole or corresponding part of the sum charged that remains unpaid at the time the notice is given,
  • the whole or corresponding part of any unpaid interest due on the sum charged at the time the notice is given, and
  • any interest accruing on the sum charged after the notice is given, as far as it is referable to the sum payable by the responsible company under the issue of the notice.

If any sum payable by the responsible company under TIOPA10/S371UF(3) is not fully paid by the end of three months, starting with the date on which the notice is given, the outstanding amount may be recovered from the defaulting company. This does not however affect the right of recovery from the responsible company.