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HMRC internal manual

Company Taxation Manual

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HM Revenue & Customs
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Corporation Tax self assessment (CTSA): group relief - general: time limit - enquiry cases

When you open an enquiry into a company tax return, the time limit is extended until 30 days after the enquiry is concluded by FA98/SCH18/PARA74 (1)(b) - (d).

A company can make or withdraw a group relief claim up to the last of the following dates:

  • 30 days after the issue of a notice of completion of the enquiry(see example 1),
  • when you amend a return following an enquiry,
    • 30 days after the notice of amendment is issued (see example 2),
  • when there is an appeal against your amendment to the return
    • 30 days after the date the appeal is finally determined (see example 3).

Example 1

  • Company B makes up its accounts to 31 December each year.
  • On 21 January 2001, the company receives a notice to deliver specifying the period 1 January 2000 to 31 December 2000.
  • Company B submits its return for the year ended 31 December 2000 in November 2001 (before the filing date).
  • You open an enquiry into the return.
  • You issue a closure notice under FA98/SCH18/PARA32 on 13 February 2003 completing the enquiry.

Unless the Revenue subsequently amends Company B’s return under FA98/SCH18/PARA34 (2), Company B has until 15 March 2003, 30 days following the completion of the enquiry, to make and withdraw group relief claims.

Example 2

  • You enquire into Company C’s return for the accounting period ended 30 June 2000.
  • You issue a closure notice on 14 October 2002.
  • Company C fails to amend its return in accordance with the conclusions stated in the closure notice.
  • You amend the return under FA98/SCH18/PARA34 (2) on 20 November 2002.

Under FA98/SCH18/PARA74 (1)(c) Company C has until 20 December 2002 to make and withdraw group relief claims, 30 days after notice of the amendment was issued.

Example 3

  • Company D’s return for its accounting period ended 31 December 2002 gives rise to a dispute about a substantial point of law.
  • The House of Lords hear Company D’s appeal against the Revenue amendment of its return (Paragraph 34 (2)).
  • The House of Lords give their decision on 19 April 2009.

Company D has until 19 May 2009 to make and withdraw group relief claims, 30 days after the date on which its appeal was finally determined (Paragraph 74 (1)(d)).

Paragraph 74 (3) relaxes the time limits that otherwise apply to the amendment of a return when a company makes or withdraws a claim for group relief within the time allowed under Paragraph 74 (1).

Some of the dates shown in the examples are later than the normal dates for company amendment of a return under FA98/SCH18/PARA15 and FA98/SCH18/PARA34 (1). This is because Paragraph 74 (1) over-rides those time limits for the purpose only of making or withdrawing group relief claims.

However, Paragraph 74 (4), does not extend the time limit when the enquiry is restricted to a previous amendment of a return making or withdrawing a claim for group relief.

An enquiry is restricted to an amendment if:

  • the scope of the enquiry is limited as mentioned in Paragraph FA98/SCH18/PARA25 (2), because you issue the notice of enquiry after the time that you may open an enquiry into the whole of the return,

and

  • the amendment giving rise to the enquiry consisted of the making or withdrawing of a group relief claim.