COM53100 - Claims / reliefs: other reliefs: group relief - notices of consent
This subject is presented as follows:
General
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)).
The consent to surrender must meet a number of formal conditions for the group relief claim to be valid. Consents to surrender group relief must be given
- By notice in writing
- To the HMRC office to which the surrendering company makes its returns
- At or before the time the claim is made (Paragraph 70(3))
CT600C Supplementary Pages
A group relief claim must be accompanied by a copy of the notice of consent given by the surrendering company. (Paragraph 70(4)) A claimant company makes a separate claim to group relief from each surrendering company for each AP.
Paragraph 71 sets out the details that must be contained in a notice of consent by the surrendering company.
Companies that are claiming, or surrendering, any amounts under the group relief provisions need to complete the CT600C supplementary pages to the return. For more information see subject ‘Group Relief - CT600C Supplementary Pages’ (COM53050) in this section.
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 (Paragraph 72(1)).
If a group relief surrender relates to a trading loss, the surrendering company may already have received relief for that loss for a later AP(s) under Section 393(1) ICTA 1988. In that case, the surrendering company must also amend its return for that later AP(s) at the same time as it gives the notice of consent (Paragraph 72(2)). For this purpose, relief under Section 393(1) is treated as given for losses incurred in earlier APs before losses incurred in later APs. For more information see subject ‘Group Relief - Making Changes’ (COM53090) in this section.
Where we enquire into a company tax return, Para 74 Sch 18 FA 98 extends the normal time limit for a claimant company to make or withdraw group relief claims. For more information see subject ‘Group Relief - Time Limit For Claims’ (COM53110) in this section.
The power to make and withdraw claims would be meaningless if the surrendering company could not consent to the corresponding surrenders. Para 72(3) therefore relaxes the time limits that would otherwise apply to amending company tax returns so as to enable the surrendering company to grant consent and make any consequential changes described in Para 72(1) and (2).
Withdrawal of consent
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)).
Paragraph 71(3) requires the withdrawal of a notice of consent to be made by notice to the same HMRC office as that to which the notice was given. In practice, where responsibility for the tax affairs of the company has been transferred from one HMRC office to another, you can accept a notice that is given to the new office.
A notice of withdrawal must be accompanied by a notice from the claimant company signifying its consent to the withdrawal, otherwise it is ineffective. (Paragraph 71(4))
Note: The only exception to this is where the consent is withdrawn under Paragraph 75 because of a reduction in the amount available for surrender. For more information see subject ‘Group Relief - Dealing With Excessive Relief’ (COM53060) in this section.
The claimant company must amend its return to reflect the withdrawal of consent. (Paragraph 71(5)) For more information see subject ‘Group Relief - Making Changes’ (COM53090) in this section.
For a list of forms relevant to this subject, see COM53011.
For legislation applying to this subject, see COM53013.
