EGL33000 - Groups: nominating a lead member for a group

EGL32000 explains that for a generating undertaking that is a group, it is the lead company in the group that is responsible for reporting and paying the EGL. It also shows how to identify that lead member in the absence of a nomination by the group. The process for nominating a lead member is set out in F(2)A23/S288(4) & (5) as follows –

Only a company that is within the charge to corporation tax may be nominated. This means a UK resident company or a non-UK company that is chargeable to corporation tax by virtue of having a UK permanent establishment. See Step 1 in F(2)A23/S288(2).

  • The nomination must be made by a notice given to HMRC by the company that would be the lead member but for the making of a nomination, this will usually be the parent company of the group.
  • A nomination takes effect from the date specified in the notice provided that is no earlier than the beginning of the qualifying period in which the nomination is made. ECL34000 explains how the qualifying period, based on the CT accounting period of the lead company, is to be identified.
  • A nomination ceases to have effect when a new nomination is received or an existing one is revoked (from the date specified in the new nomination or revocation) or when the nominated company leaves the group.
  • If there is a change in the lead members of a group and the qualifying periods of the companies overlap, then the existing qualifying period for EGL purposes will end and another begin at the time the change takes place. F(2)A23/S288(6).

It is expected that in practice groups will usually ensure that a nomination takes effect from the time that an established qualifying period ends. For example – a group has a standard accounting period that ends on 31 December and AA Ltd is the nominated company. However, AA Ltd is sold out of the group on 1 August 2026. The group can nominate BB Ltd as the new nominated company and specify that the change takes effect from 1 January 2026. This means that the group will continue to have 12 month qualifying periods corresponding to CT accounting periods, rather than having two shorter periods.