COM53040 - Claims / reliefs: other reliefs: group relief - claims
Claims to group relief for a CTSA AP must be included in a company’s CT600 tax return. If a company has already submitted its return for an AP, it may make group relief claims by amending its return (Paragraph 67 Schedule 18 FA 1998).
Under both the CTSA and CT Pay and File regimes, claims to group relief cannot be amended, but must be withdrawn and replaced by a new claim. Claims can only be withdrawn by the company amending its return (Paragraph 73).
Note: Schedule 1A TMA 1970 (claims or elections that cannot be dealt with by inclusion in a return either as first made or by amendment) does not apply to group relief claims.
For more information see subject ‘Group Relief - Giving Effect To Claims’ (COM53070) in this section.
Every group relief claim must specify the amount of relief claimed which must be ‘quantified’ at the time the claim is made. (Paragraph 68). ‘Quantified’ means that the claim must be expressed in figures as opposed to a formula.
A group relief claim may be made for less than the amount available for surrender by the surrendering company, but cannot be for more than the total amount available for surrender (Paragraph 69). For more information see subject ‘Group Relief - How Much Can Be Claimed’ (COM53080) in this section.
A group relief claim must specify the name of the surrendering company. A claimant company makes a separate claim to group relief from each surrendering company for each AP. Companies that are claiming, or surrendering, any amounts under the group relief provisions need to complete the CT600C group and consortium supplementary pages to the return. For more information see subject ‘Group Relief - CT600C Supplementary Pages’ (COM53050) in this section.
The general principle is that group relief claims may be made or withdrawn up to the first anniversary of the filing date (Word 42KB) for the return. That will not be earlier than two years after the end of the claimant company’s AP. However, where HMRC enquires into a company tax return, the time limit is extended so that claims may be made or withdrawn for up to 30 days after the enquiry is completed (Paragraph 74). For more information see subject ‘Group Relief - Time Limit For Claims’ (COM53110) in this section.
Except where a company is a member of a simplified arrangement (Word 34KB), every claim to group relief requires the consent of the surrendering company (Paragraph 70(1)).
If the surrendering company has already made its company tax return for the period to which the surrender relates, it must amend the return to reflect the notice of consent at the same time as it gives the notice (Paragraph 72(1)). If the surrendering company has already obtained relief for the surrenderable amount for a later AP, it must amend its return for that later AP at the same time as it gives the notice of consent (Paragraph 72(2)).
Where a surrendering company wishes to change the amount of group relief it has surrendered, it cannot amend any notice of consent it has previously given. Instead, it must withdraw the earlier notices and replace them with new ones (Paragraph 71(2)).
For more information see subject ‘Group Relief - Notices Of Consent’ (COM53100) in this section.
Companies may not surrender more amounts as group relief than is shown by their returns. However if, after a surrendering company has given one or more notices of consent, the amount it has available for relief is reduced to less than the total already surrendered, the total group relief allowed has to be brought within the total available for surrender (Paragraph 75).
The surrendering company must withdraw one or more notices of consent (and if appropriate, it may give one or more new notices) so as to bring the total surrendered within the new amount available for surrender.
If a claimant company is able to amend its return for the AP for which less or no group relief is now available, it must do so (Paragraph 75(6)).
HMRC can make an assessment to tax to recover group relief which was excessive when it was given or has become excessive as a result of a reduction in the amount of group relief available for surrender (Paragraph 76).
For more information see subject ‘Group Relief - Dealing With Excessive Relief’ (COM53060) in this section.
See the Corporation Tax (CT) Manual at CT10700 onwards for the detailed legal background to group relief claims.
For a list of forms relevant to this subject, see COM53011.
For legislation applying to this subject, see COM53013.
