CTM05200 - Corporation tax: restriction on relief for carried-forward losses: group allowance allocation statement

CTA10/S269ZT to CTA10/S269ZVA

Submission of statement

CTA10/S269ZT

The nominated company (CTM05180) is responsible for submitting a group allowance allocation statement (GAAS) for each of its accounting periods for which it is the nominated company.  Failure to submit the GAAS means that no company  in the group would have any deductions allowance for that period (CTA10/S269ZR (2)(a)).

It is not required to do so if it ceases to be the nominated company before the statement has been submitted.  In that instance a new nominated company is needed.  However, if the statement was submitted before the date of a nomination that was retrospective and came into effect before the submission, the statement is still valid. 

A GAAS is not required for any period where no members of the group are utilising any losses carried-forward from earlier accounting periods (CTA10/S269ZT (3A)). 

The GAAS must be received by HMRC before the first anniversary of the filing date for the nominated company's tax return for the accounting period to which the statement relates, or a later period if HMRC allows - see below.

For accounting periods beginning on or after 1 April 2021, the time limit to submit an original statement is the latest of:

  • the first anniversary of the filing date for the company tax return for the nominee's accounting period,
  • 30 days after any enquiry into a relevant return under FA98/SCH18 is completed,
  • 30 days after any notice of an amendment is issued by HMRC under FA98/PARA34 (2) following an enquiry into a relevant return, and
  • 30 days after any appeal into such an amendment is finally determined.

The time limit can be further extended if HMRC allows.

The nominated company may submit the GAAS in PDF format as an attachment to its return, and a template for this purpose may be found at CTM04836.  Other companies in the group need not submit copies of the statement provided it is submitted by the nominated company.  However, each company’s return must specify the amount of that company’s deductions allowance for the period (CTA10/S269ZZ).

The time limits for submitting a GAAS should generally be adequate and an officer of Revenue and Customs will not make routine use of the power to accept a statement outside these.  But there may be exceptional reasons why a GAAS is not submitted timeously.  Applications to allow further time will be considered by an officer of Revenue and Customs with the assistance of the criteria outlined at paragraphs 10, 11 and 12 of SP5/01, adapted to the fact that a group allowance allocation statement is not a claim.

An application to submit a GAAS outside the statutory time limits should be sent to the office dealing with the nominated company and should otherwise be in accordance with paragraph 13 of SP5/01.  The guidance at CTM97065 would, therefore, apply to consideration of  whether or not late statements should be accepted.

Example

Company A has an accounting period ending 31 December 2018.  It is the nominated company for group G throughout that period.

Company A should submit a GAAS for group G for its accounting period ending 31 December 2018.  It should do so by the first anniversary of the filing date for its tax return for that period, with a deadline of 31 December 2020.

Company A submits a GAAS on 1 March 2019.  On 5 August 2019, the group nominates a different group company, company B, as its nominated company, and specifies that the nomination should have effect from 1 January 2019.

As a result of this retrospective nomination, company B, not company A, is now considered to be the nominated company from 1 January 2019.  However, the GAAS that company A submitted after this date is still valid, as it was submitted before 5 August 2019, the date when the retrospective nomination was made.

Submission of revised statement

CTA10/S269ZU

A revised GAAS may be submitted for an accounting period of a company that is or was a nominated company. This accounting period is known as the nominee's accounting period (CTA10/S269ZU (1)).

If the nominated company for the group has since changed, the revised statement for the nominee's accounting period must be submitted by the new nominee.  If a new nomination is retrospective, and takes effect before the date on which the nomination is made, any revised statement submitted in the meantime by the previous nominated company, before the date on which the new nomination was made, remains valid.

The time limit to submit a revised statement is the laterst of:

  • the first anniversary of the filing date for the company tax return for the nominee's accounting period,
  • 30 days after any enquiry into a relevant return under FA98/SCH18 is completed,
  • 30 days after any notice of an amendment is issued by HMRC under FA98/PARA34 (2) following an enquiry into a relevant return, and
  • 30 days after any appeal into such an amendment is finally determined.

The time limit can be further extended if HMRC allows - see below.

A relevant return is one submitted for an accounting period for which an amount of the deductions allowance was or could have been allocated in a previous statement in respect of the nominee's accounting period (CTA10/S269ZU (6)).

An enquiry does not include one resulting from an amendment where the scope of the enquiry is limited under FA98/SCH18/PARA25 (2) and relates only to the allocation of the deductions allowance for the nominee's accounting period  (CTA/S269ZU (7)).

The time limits for submitting a revised GAAS should generally be adequate and an officer of Revenue and Customs will not make routine use of the power to accept a revised statement outside these limits.  But there may be exceptional reasons why a revised GAAS is not submitted within the time specified.  Applications to allow further time will be considered by an officer of Revenue and Customs with the assistance of the criteria outlined at paragraphs 10, 11 and 12 of SP5/01, adapted for the fact that a revised group allowance allocation statement is not a claim. 

An application to submit a revised GAAS outside the statutory time limits should be sent to the office of Revenue and Customs dealing with the nominated company and should otherwise be in accordance with paragraph 13 of SP5/01.

Statements and revised statements: requirements

CTA10/S269ZV (2) and (3)

A GAAS or revised statement must:

  • be signed by the appropriate person of the company giving the statement,
  • identify the group it relates to, for example by naming the ultimate parent and the top UK entity or entities (if different),
  • specify the accounting period of the company that is or was the nominated company (CTM05180) for the period to which the statement relates (the nominee's accounting period),
  • specify the days in the nomineeʼs accounting period on which that company was the nominated company in relation to the group, or confirm that that company was the nominated company throughout the period,
  • indicate the amount of the group deductions allowance (CTM05190) the group has for the nominee's accounting period, 
  • list one or more of the companies that were members of the group and within the charge to Corporation Tax in the nominee’s accounting period, 
  • allocate amounts of the group deductions allowance to the listed companies, and 
  • for each amount of group deductions allowance allocated to a listed company, specify the accounting period of the listed company for which it is allocated.

(CTA10/S269ZV (2) and (3))

The appropriate person, in relation to a company, means:

  • the proper officer of the company, or
  • another person who, at the relevant time, has the express, implied or apparent authority of the company to act on its behalf for the purposes of CTA10/PART7ZA.  (CTA10/S269ZS (9))

Submission of a statement for a former group

CTA10/S269ZVA

Where a group ceases to exist for the purposes of S269ZZB (2), for example where the ultimate parent changes following an acquisition or demerger, a company that, immediately before the group ceased to exist, was nominated under either S269ZS or S269ZSA (CTM05180) may submit a statement for a period prior to the date the group ceased to exist.  The company nominated may also submit a revised GAAS under S269ZU (2) for the period the nomination has effect.