Corporation tax: restriction on relief for carried-forward losses: group allowance allocation statement
CTA10/S269ZT and CTA10/S269ZU
Submission of statement
The nominated company (CTM05180) is responsible for submitting a group allowance allocation statement for each of its accounting periods for which it is the nominated company.
It is not required to do so if it ceases to be the nominated company before the statement has been submitted. In that instance the new nominated company is required to do so. 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.
The group allowance allocation statement 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 it.
The nominated company can submit the group allowance allocation statement in PDF format as an attachment to its return. A template that can be used for this purpose can be found at CTM04836. Other companies in the group do not need to submit copies of the statement, so long as it is submitted by the nominated company. However, each company’s return should specify the amount of that company’s deductions allowance for the period (CTA10/S269ZZ).
Company A has an accounting period ending 31 December 2018. It is the nominated company for Group G throughout that period.
Company A should therefore submit a group allowance allocation statement 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. This gives a deadline of 31 December 2020.
Company A submits a group allowance allocation statement 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 as the nominated company from 1 January 2019. However, the group allowance allocation statement 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
A revised group allowance allocation statement can 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 actual date on which the nomination is made, then any revised statement submitted in the meantime by the previous nominated company, before the date on which the new nomination was actually made, is still valid.
The time limit to submit a revised statement is the later 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 it.
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)).
Statements and revised statements: requirements
CTA10/S269ZV(2) and (3)
A group allowance allocation statement 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 state that that company was the nominated company throughout the period,
- State 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 time being, has the express, implied or apparent authority of the company to act on its behalf for the purposes of CTA10/PART7ZA.