Commentary

D2.240 Claims for group relief—current year and carried forward losses

Corporate tax
Corporate tax | Commentary

D2.240 Claims for group relief—current year and carried forward losses

Corporate tax | Commentary

Group relief—administration

D2.240 Claims for group relief—current year and carried forward losses

When making a claim for group relief/consortium relief for current year or brought forward losses the following documents must be included:

  1.  

    •     a formal claim (in the corporation tax return or on an amended return), and

  2.  

    •     a copy of the notice of consent to the surrender, (unless the claim is for overseas losses of non-resident companies in which case the claimant company submits the original consent)

There are also regulations which simplify the administration of making group relief claims. These apply provided certain conditions are met (see D2.241).

Formal claim—group relief

A claim1 must be included in the corporation tax return of the claimant company for the accounting period for which the claim is made or in an amended return for that period2. Returns may be submitted over the internet3

HMRC state that they will usually demand a higher standard of evidence of the trading losses where group/consortium relief claims are concerned and this could include the submission of audited accounts4. As regards the time limit for making a claim, see D2.242.

A claim cannot be amended, but must be withdrawn and replaced by another claim5.

However, the courts have decided that the submission of a further group relief claim does not of itself amount to withdrawal of an earlier claim and that the two can exist simultaneously pending withdrawal of one or the other claims. In LINPAC Group Holdings Ltd v HMRC6, the First-tier Tax Tribunal (FTT) held that UK

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