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HMRC internal manual

Company Taxation Manual

CTSA: group relief: simplified arrangements: partial acceptance of an application

Regulation 9 SI1999/2975

Sometimes, rather than refusing an application to enter into a simplified arrangement (CTM97740), it will be more appropriate to accept it but only in part. Regulation 9 allows you to exclude a particular company from an arrangement where:

  • it is not part of the group (CTM97680),
  • it has failed to comply with its obligations under the Corporation Tax Acts, or
  • it is a company in relation to which a person is acting as an insolvency practitioner.

For this purpose an insolvency practitioner means a liquidator, provisional liquidator, administrator, administrative receiver or a supervisor of a voluntary arrangement under Part I of the Insolvency Act 1986. This reflects our view that the appointment of an insolvency practitioner causes the previous owners of a company to lose control of it, breaking the group relationship.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

For excluding a company from a simplified arrangement following a change of circumstances see CTM97760.