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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. Cases where a late claim or withdrawal is pressed and the Grade 6 Technical, Compliance or Case Manager considers it should be refused, should be submitted to CT&VAT (Technical) before formal refusal is made.

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.

You should not accept a late claim or withdrawal in any case where it is part of a scheme or arrangements to avoid tax or the payment of tax. Submit any such cases to CT&VAT (Technical). Take particular care where the effect of a late claim or withdrawal is to move a tax liability from a company with funds to meet it to a company which does not have funds to meet the liability in full.

All referrals for the consideration of HMRC discretion should be made to CT&VAT (Technical) using the template found by clicking the Technical Help button in the left bar of this manual.