COM53060 - Claims / reliefs: other reliefs: group relief - dealing with excessive relief
This subject is presented as follows:
Amount available for surrender reduced
A company may not surrender more as group relief than is shown to be surrenderable in its return. However it may happen that, 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 of the amounts previously surrendered. In that case, the total group relief allowed has to be brought within the total of the amount 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 amount surrendered within the new amount available for surrender. It must do this within 30 days after the date on which the amount available for surrender is reduced (Paragraph 75(2)).
The notice or notices must be in writing and copies must be sent to each of the companies affected, and to HMRC (Paragraph 75(3)).
Where the surrendering company fails to take action under Paragraph 75(2), HMRC may direct which claims are to be ineffective or to have effect in a lower figure
- To the extent necessary to bring the total amount surrendered as group relief within the total of the amount available for surrender
- By notice to the surrendering company (Paragraph 75(4))
- Must send a copy of the notice to each claimant company affected (Paragraph 75(4) and (5))
If a claimant company is able to amend its return for the AP for which less or no group relief is now available following receipt of a copy notice under either Paragraph 75(3) or (4), it must do so (Paragraph 75(6)). See subject ‘Group Relief - Making Changes’ (COM53090) in this section.
Recovering excessive relief
Paragraph 76 gives HMRC power to 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. See subject ‘Group Relief - Making Changes’ (COM53090) in this section.
For legislation applying to this subject, see COM53013.
