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HMRC internal manual

Compliance Handbook

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HM Revenue & Customs
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Information & Inspection Powers: Information Notices: Third Party Notice: Groups: Groups of undertakings

You will normally gather the documents and information you need to check the tax position of a member of a group using either a taxpayer notice, see CH23520, or a third party notice, see CH23620. There are no changes or relaxations to the rules where you ask for documents or information relating to a particular group member.

Sometimes the document or information you obtain, either voluntarily or as a result of an information notice, will be useful to check the tax position of another group member. CRCA05/S17 allows you to use that document or information in your check of the other member.

There are special rules where you issue a third party notice to

  • any person for the purpose of checking the tax position of the parent undertaking and any of its subsidiary undertakings, see CH23760, or
  • the parent undertaking for the purpose of checking the tax position of more than one of its subsidiary undertakings, see CH23780.

There are no special rules for a third party notice issued to a parent undertaking for the purpose of checking the tax position of one of its subsidiary undertakings. You must follow the guidance in CH23620.

There are no special rules for a third party notice issued to a subsidiary undertaking for the purpose of checking the tax position of the parent undertaking or any fellow subsidiaries. You must follow the guidance in CH23620.

An undertaking is a body corporate, a partnership or an unincorporated association carrying on a trade or business, with or without a view to profit.

A parent undertaking or a parent undertaking’s subsidiary, see CH23800, is determined using the rules in Section 1162 of the Companies Act 2006.

CH23800 explains in more detail the meaning of ‘parent undertaking’ and ‘subsidiary undertaking’.

FA08/SCH36/PARA35

Companies Act 2006/S1161