42(1)This paragraph applies to a UK group if—U.K.
(a)the head of the group has been given a warning notice in relation to the group that has not been withdrawn,
(b)the period of 12 months beginning with the day on which the warning notice was given has elapsed, and
(c)the period of 15 months beginning with that day has not elapsed.
(2)If a designated HMRC officer considers that the group falls within this Part, the officer may give the head of the group a notice under this paragraph (a “special measures notice”).
(3)When considering whether the group falls within this Part, the officer may take into account any relevant behaviour, whether or not it is mentioned in the warning notice.
(4)When deciding whether to give a special measures notice, the designated HMRC officer must consider any representations made by a member of the group before the end of the period of 12 months beginning with the day on which the warning notice was given.
(5)The special measures notice must set out the reasons why the officer considers that the group falls within this Part.
(6)Paragraph 45 deals with other circumstances in which a UK group may be given a special measures notice.
43(1)A special measures notice—U.K.
(a)may be withdrawn by a designated HMRC officer at any time by giving a further notice to the head of the UK group, and
(b)expires, if not previously withdrawn, at the end of the period of 27 months beginning with the relevant day.
(2)“The relevant day” means the later of—
(a)the day on which the special measures notice was given, and
(b)the day on which it was last confirmed under paragraph 44.
44(1)This paragraph applies to a UK group if—U.K.
(a)the head of the group has been given a special measures notice in relation to the group which has not been withdrawn,
(b)the period of 24 months beginning with the relevant day has elapsed, and
(c)the period of 27 months beginning with that day has not elapsed.
(2)If a designated HMRC officer considers that the group falls within this Part, the officer may give the head of the group a notice under this paragraph (a “confirmation notice”) confirming the special measures notice given in relation to the group.
(3)When considering whether the group falls within this Part, the officer may take into account any relevant behaviour, whether or not it is mentioned in the special measures notice which is to be confirmed, in any previous confirmation notice or in the warning notice.
(4)“The relevant day” has the same meaning as in paragraph 43(2).
(5)The confirmation notice must set out the reasons why the officer considers that the group falls within this Part.
(6)When deciding whether to give a confirmation notice, a designated HMRC officer must consider any representations made by a member of the group before the end of the period of 24 months beginning with the relevant day.
(7)A confirmation notice—
(a)may be withdrawn by a designated HMRC officer at any time by giving a further notice to the head of the group, and
(b)expires, if not previously withdrawn, at the end of the period of 27 months beginning with the day on which it is given.
45(1)This paragraph applies in relation to a UK group where—U.K.
(a)the head of the group has been given a warning notice or a special measures notice in relation to the group, and
(b)that notice has expired.
(2)A designated HMRC officer may give the head of a UK group a special measures notice if—
(a)it appears to the officer that—
(i)during the period of 6 months beginning with the day on which the notice mentioned in sub-paragraph (1)(a) expired (“the expiry day”), the group has engaged in unco-operative behaviour (see paragraphs 36 to 38), and
(ii)there is a reasonable likelihood that, if it had engaged in the behaviour before the notice expired, a designated HMRC officer would have considered that the group fell within this Part (so that a special measures notice or confirmation notice could have been given to the head of the group),
(b)during the period of 7 months beginning with the expiry day, a designated HMRC officer has notified the head of the group that the power under this paragraph may be exercised in relation to the group, and
(c)the period of 9 months beginning with that day has not elapsed.
(3)When deciding whether to give a special measures notice under this paragraph, the officer must consider any representations made by a member of the group before the end of the period of 8 months beginning with the expiry day.