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HMRC internal manual

Company Taxation Manual

CTSA: group relief: simplified arrangements: application to set up an arrangement

Regulation 6 SI1999/2975

An application for a simplified arrangement (CTM97650) should be made in writing and be sent to the tax office dealing with the tax affairs of the authorised company. It should be made by the authorised company (CTM97660) on behalf of itself and the authorising companies (CTM97670).

The application should give details, including names and unique taxpayer references, for all the companies that are to be parties to the simplified arrangement.

The application must also explain the group relationships of the companies that are to be parties to the simplified arrangement. That is, it should provide sufficient detail to demonstrate that the authorised company and each of the authorising companies is either:

  • a member of the same group (CTM97680), or
  • a company owned by a consortium of which one of the companies in the group is a member (CTM80555).

It may be helpful to include with the application a diagram showing the group or consortium relationships.

The application should also contain:

  • a statement by the authorised company and the authorising companies that they agree to be covered by the arrangements and to be bound by claims, surrenders and withdrawals made under the arrangements,
  • a specimen copy of the written statement, which the authorised company intends to use in the simplified arrangement, must accompany the application.

The application should be signed on behalf of each company by its proper officer, within the meaning of TMA70/S108. This will usually be the company secretary.

An additional application should be made for groups wishing to enter into simplified arrangements for group relief for carried-forward losses which should also contain a specimen copy of the written statement encompassing group relief for carried-forward losses.

If any consortium company is to be party to the simplified arrangement see CTM97780.

For applications to join an existing simplified arrangement see CTM97700.