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HMRC internal manual

Company Taxation Manual

Corporation Tax self assessment (CTSA): group relief - general: time limit - late claims - SP5/01 - guidance on

FA98/SCH18/PARA74 (2), SP5/01

Guidance on the time limits for making or withdrawing a group relief claim under CTSA is at CTM97045 and CTM97050.

FA98/SCH18/PARA74 (2) gives a discretionary power to HMRC to extend those time limits. SP5/01 (see CTM97060 for the full text) sets out the HMRC approach to the exercise of the discretionary power. A decision to accept a late claim or withdrawal may be made by a Grade 6 Technical, Compliance or Case Manager, on their own authority, following the approach set out in the Statement. A Grade 6 who considers, on the basis of SP5/01, that refusal is appropriate should refer the matter to CTIS (Technical) for review before formal refusal is made – see ‘Technical Help’ on the left bar of the intranet page.

Paragraph 10 of SP5/01 indicates that, in general, the HMRC approach is to admit late claims and withdrawals of claims that could not be made within the statutory time limits for reasons beyond the company’s control. The Statement gives examples of such reasons. Those examples are intended to illustrate matters that are beyond a company’s control. They are not intended to be an exhaustive list. Paragraph 11 gives some examples of matters that we would not regard as being beyond the company’s control.

Paragraph 12 of SP5/01 may apply even if the company cannot show that the reasons for the late claim were beyond its control. The company should have sent, with its application for the late claim or withdrawal to be admitted, a full explanation of the factors it wishes to be taken into account. If it has not done so, you should ask it to do so as part of consideration of the late claim. A late claim or withdrawal may be accepted if, taking account of all of the factors, it would clearly be unreasonable to refuse it.

Officers should take into account when making a decision on a late claim or withdrawal whether it forms part of a scheme or arrangement, the main purpose or one of the main purposes of which is the avoidance of tax or payment of tax.