CTM80200 - Groups: group relief: information about arrangements

FA73/S32

Section 32 (1) gives you power to obtain information about arrangements, it applies if:

• a company makes a claim for group relief,

and

• you have reason to believe that any arrangements within ICTA88/S410 ( CTM80175) or ICTA88/SCH18/PARA5 (3) ( CTM81085) exist or may have existed at any time material to the claim.

Section 32 (1) allows you, at any time after the claim is made, to serve a written notice on the claimant company requiring it to give you:

• a declaration in writing stating whether or not any such arrangements exist or existed at any material time and/or,
• such information you may reasonably require to satisfy yourself whether or not any such arrangements exist or existed at any material time.

There is guidance at CTM80195 on the date of arrangements.

You should seek any information regarding possible arrangements in the normal way from the company's agents. You should only resort to the formal procedure where:

• you believe that relevant arrangements may exist or may have existed at a time material to the claim, and
• the company or its agent has not supplied the necessary information.

Where it is appropriate to take formal action, you should serve a formal notice on the claimant company which:

• specifies the information required, and
• requires a declaration under FA73/S32 (1)(i), where necessary, and
• specifies the time (not less than 30 days) within which the company should supply the information and/or declaration.

Send a copy of the formal notice to the company's agent.

You should ensure that the information you seek in the notice is only that you reasonably require to determine whether or not there are any relevant arrangements.

FA73/S32 (3) empowers the inspector to serve notice on the surrendering company instead of, or in addition to, the claimant company. You have to judge on the facts of the particular case whether it is likely such a procedure would be worthwhile. But you should not give a formal notice to the surrendering company until you have exhausted the possibilities of obtaining information on the normal informal basis. Where different offices deal with the surrendering company and the claimant company, any formal or informal approach for information should be made by the office dealing with the surrendering company.

The penalty provisions of TMA70/S98 apply to notices under FA73/S32.

FA73/S32 also applies, amongst other things, to arrangements relating to the transfer of leasing contracts to successor companies within the meaning of ICTA88/S395 (see CTM06200).