Corporation Tax self assessment (CTSA): group relief - general: consent to surrender
Except where a company is a member of a simplified arrangement (see CTM97600 onwards), every claim to group relief requires the consent of the surrendering company (FA98/SCH18/PARA70 (1)).
From 29 December 2000 a company in a simplified arrangement can claim group relief in its original return without submitting a copy notice of consent, provided the authorised company (CTM97660) gives its authorisation by counter-signing the claimant’s tax return (see CTM97005).
The consent to surrender must meet a number of formal conditions that are set out below. Unless all of the conditions are met, the group relief claim is not valid.
Surrendering companies must give notice in writing, to the Tax Office to which they make returns, of consents to surrender group relief. They must do this at or before the time the claim is made (FA98/SCH18/PARA70 (3)).
A copy of the notice of consent to surrender must accompany any claim for group relief (FA98/SCH18/PARA70 (4)). From 29 December 2000 a company in a simplified arrangement can claim group relief in its original return without submitting a copy notice of consent (see CTM97005).
A consortium claim to group relief requires the consent of each member of the consortium, in addition to the consent of the surrendering company (FA98/SCH18/PARA70 (2)).
Similarly, a copy of the notice of consent to surrender given by each member of the consortium must accompany a consortium claim (FA98/SCH18/PARA70 (5)).
Contents of notice of consent to surrender
FA98/SCH18/PARA71 sets out the details that the surrendering company must include in a notice of consent.
- the name of the surrendering company,
- the name of the company to which relief is being surrendered,
- the amount of relief being surrendered,
- the accounting period of the surrendering company to which the surrender relates,
- the Tax Office references for the claimant and surrendering companies.
A surrendering company that has made a company tax return for the period to which the surrender relates must amend its return to reflect the notice of consent when it gives the notice, (FA98/SCH18/PARA72 (1))