COM53090 - Claims / reliefs: other reliefs: group relief - making changes
This subject is presented as follows:
Notice of consent requiring amendment of return
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. For more information see subject ‘Group Relief - Notices Of Consent’ (COM53100) in this section.
The amendment to the return does not involve updating the surrendering company’s computer record since details of the notice of consent are not captured onto COTAX.
If a group relief surrender relates to a trading loss and the surrendering company has already received relief for that loss under Section 393(1) ICTA 1988 (carry forward of trading losses) for a later AP(s)
- It must amend its return for that later AP(s), at the same time as it gives the notice of consent, withdrawing the loss relief under Section 393(1) ICTA 1988 so as to reflect the new notice of consent
Note: For this purpose, relief under Section 393(1) is treated as given for losses incurred in earlier APs before losses incurred in later APs.
The Inspector dealing with the surrendering company will
- Use Function RAMA option 3, ‘Record a Taxpayer Amendment’, to notify the computer of the withdrawal of the loss relief for that later AP(s)
For more information see subject ‘Amendments to CTSA Returns’ (COM23010) in the ‘Assessing’ business area
Withdrawal of consent
If a surrendering company wants to change the amount of group relief it has surrendered, it must withdraw the earlier notice of consent and replace it with a new one. For more information see subject ‘Group Relief - Notices Of Consent’ (COM53100) in this section.
The withdrawal and replacement of any notice of consent does not involve updating the surrendering company’s computer record since details of the notice of consent are not captured onto COTAX.
The claimant company must amend its return, as far as it may do so, to reflect the withdrawal of consent. The Inspector dealing with the claimant company will
- Use Function RAMA option 3, ‘Record a Taxpayer Amendment’, to notify the computer of the consequential effect on the group relief claim
For more information see subject ‘Amendments to CTSA Returns’ (COM23010) in the ‘Assessing’ business area
If the claimant company cannot, or does not, amend its return to reflect the withdrawal of consent, the Inspector dealing with the claimant company may
- Make a Para 76 assessment to tax in the amount which ought to be charged to recover the excessive group relief. See below.
Amount available for surrender reduced
If the amount available as group relief is reduced to less than the total already surrendered, the surrendering company must withdraw one or more notices of consent (and, if appropriate, give one or more new notices) to bring the total amount surrendered within the new amount available for surrender. For more information see subject ‘Group Relief - Dealing With Excessive Relief’ (COM53060) in this section.
The withdrawal and replacement of any notice of consent does not involve updating the surrendering company’s computer record since details of the notice of consent are not captured onto COTAX.
If a claimant company can amend its return for the AP for which less or no group relief is now available, it must do so to reflect any withdrawn (and new) notice of consent. The Inspector dealing with the claimant company will
- Use Function RAMA option 3, ‘Record a Taxpayer Amendment’, to notify the computer of the consequential effect on the group relief claim
For more information see subject ‘Amendments to CTSA Returns’ (COM23010) in the ‘Assessing’ business area
Recovering excessive relief
If you discover that any group relief which has been given is or has become excessive (for example, where a claimant company cannot, or does not, amend its return for the AP for which less or no group relief is now available), you
- Can make a Para 76 assessment to tax in the amount which ought to be charged to recover the excessive group relief
- Cannot make this assessment in COTAX
- Should use a CT10(Z) set to make the assessment manually
The particulars to enter on the assessment are ‘Paragraph 76 Finance Act 1998 assessment to recover excessive group relief’. Show the tax as payable NOW. For guidance on making the assessment see the Instructions on ADP for companies (AC) Manual at AC4510 onwards.
For a list of forms relevant to this subject, see COM53011.
For a list of functions to use in particular situations, see COM53012.
For legislation applying to this subject, see COM53013.
