Section 171 | Tax returns where transfer pricing notice given

(1)If a transfer pricing notice is given to a person (“T”), T may amend T's tax return for the purpose of complying with the notice at any time before the end of the period of 90 days beginning with—

(a)the day on which the notice is given, or

(b)if T appeals under section 170 against the decision to give the notice, the day on which the appeal is finally determined or abandoned.

(2)If a transfer pricing notice is given in the case of any tax return, no closure notice may be given in relation to that tax return until—

(a)the end of the period of 90 days specified in subsection (1), or

(b)the earlier amendment of the tax return for the purpose of complying with the notice.

(2A)Subsection (2) does not apply to a partial closure notice which does not relate to any matter to which the transfer pricing notice relates.

(3)So far as relating to any provision made or imposed by or in relation to a person—

(a)who is a small or medium-sized enterprise for a chargeable period,

(b)who does not make an election under section 167(2) for that period, and

(c)who is not excepted from section 166(1) in relation to that provision for that period because of section 167(3),

the tax return required to be made for that period is a return that disregards section 147(3) and (5).

(4)Subsection (3) does not prevent a tax return for a period becoming incorrect if in the case of any provision made or imposed—

(a)a transfer pricing notice is given which has effect in relation to that provision for that period,

(b)the return is not amended in accordance with subsection (1) for the purpose of complying with the notice, and

(c)the return ought to have been so amended.

(5)In this section—

“closure notice” means a notice under—

(a)section 28A or 28B of TMA 1970, or

(b)paragraph 32 of Schedule 18 to FA 1998,

“company tax return” means the return required to be delivered pursuant to a notice under paragraph 3 of Schedule 18 to FA 1998, as read with paragraph 4 of that Schedule, and

“tax return” means—

(a)a return under section 8, 8A or 12AA of TMA 1970, or

(b)a company tax return.