Section 80 | Duty to give notice that adjustment has rendered credit excessive

(1)This section applies if—

(a)any credit for foreign tax has been allowed to a person under the arrangements,

(b)later, the amount of that credit is reduced under section 34, or becomes excessive as a result of an adjustment of the amount of any tax payable under the law of a territory outside the United Kingdom, and

(c)the reduction or adjustment is not a Lloyd's adjustment (see subsection (5)).

(2)The person must give notice that a reduction has been made or that the amount of the credit has become excessive as a result of the making of an adjustment.

(3)Notice under subsection (2) is to be given—

(a)to an officer of Revenue and Customs, and

(b)within one year from when the reduction or adjustment is made.

(4)If the person fails to comply with the requirements imposed by subsections (2) and (3), the person is liable to a penalty not greater than the amount by which the credit has been reduced or has become excessive as a result of the adjustment.

(5)For the purposes of subsection (1)(c), the reduction or adjustment is a “Lloyd's adjustment” if the consequences of the reduction or adjustment in relation to the credit are to be given effect in accordance with regulations under—

(a)section 182(1) of FA 1993 (regulations about individual members of Lloyd's), or

(b)section 229 of FA 1994 (regulations relating to corporate members of Lloyd's).

(6)In this section so far as it relates to capital gains tax “notice” means notice in writing.