COM53110 - Claims / reliefs: other reliefs: group relief - time limit for claims

The normal time limit for making or withdrawing a group relief claim is one year after the filing date (Word 42KB) for the return. This will normally be (and will not be earlier than) two years after the end of a claimant company’s AP.

Where we enquire into a company tax return, the time limit is extended until 30 days after the enquiry is resolved. (Paragraph 74 Schedule 18 FA 1998)

In that case

• The company can make and withdraw claims during the 30 day window for amending the return generally
• If we amend the return after the enquiry, the company again has 30 days to make and withdraw claims. If it appeals against our amendment, this is extended to 30 days after the appeal is finally determined

During these extended time limits following an enquiry, the company is not limited to giving effect to group relief claims and withdrawals already notified to the Inspector, as it is in relation to other types of amendment to the return.

The above extensions do not arise if the enquiry relates to a return amendment that is restricted to the making or withdrawal of a claim to group relief.

The CTSA time limits regime is very similar to that under CT Pay and File. There is, however, no overriding six year and three months limit on the making and withdrawing of group relief claims, as there was under Paragraphs 3 and 5, Schedule 17A ICTA 1988.

HMRC can extend the time limit for making and withdrawing group relief claims. (Para 74(2) Schedule 18 FA 1998) This is effectively the same power to admit late claims which we had in relation to CT Pay and File claims under Paragraph 4 Schedule 17A ICTA 1988.

Officers in Charge may extend the time limit on their own authority. However, cases in which the Officer in Charge considers the late claim should be refused should be submitted to Business Tax Division 2 (Group Relief).

The time limits otherwise applicable to the amendment of a company tax return do not apply to an amendment to the extent that it makes or withdraws a claim to group relief within the time limit allowed under Para 74. (Para 74(30 Schedule 18 FA 1998)

Statement of Practice 11/93 explains how HMRC exercises its existing discretion to admit late claims under CT Pay and File. This Statement of Practice will be amended or replaced for CTSA APs. The new statement will be published well before July 2001, which is the earliest date on which a group relief claim for a CTSA AP can be late.

See the Corporation Tax (CT) Manual at CT10745 and following, for the detailed legal background to, and examples of, time limits for group relief claims.

For legislation applying to this subject, see COM53013.