Commentary on Sections Overview Overview Section 134: Correcting assessments where relief is available
282.This section allows correcting assessments to be made in DTR cases. It is based on sections 788(7) and 790(11) of ICTA, section 277(1) of TCGA and section 195(2) of FA 1993.
283.In relation to income tax and corporation tax, sections 788(7)(a) and 790(11) of ICTA refer to “any income or chargeable gain”. At first sight, in relation to capital gains tax, the substitution rule in section 277(1) of TCGA would seem to require references to “capital” gains in subsections (1)(a) and (2)(a), since it is possible that a DTA might provide for relief in the non-UK territory to be given in respect of tax in respect of a capital gain that is not a chargeable gain.
284.But the references to capital gains tax in conditions A and B in this section are necessarily references to UK capital gains tax. The gain therefore has to be a “chargeable” gain. Subsections (1)(a) and (2)(a) therefore refer to “any chargeable gain” in relation both to corporation tax and to capital gains tax.
285.The tail words of section 790(11) of ICTA refer to a “chargeable gain” being “entrusted to … [a person] … for payment”. It is not clear how a chargeable gain can be entrusted to a person for payment, and subsection (6) omits these words.
286.Subsection (7) reflects administrative reality by giving the function of making PRT amendments to officers of Revenue and Customs. This is a minor change in the law. See Change 2 in Annex 1.