Debt cap: appointment of the authorised company: acting on behalf of group companies
This guidance applies to worldwide group periods of account ending before or straddling 1 April 2017.
The power of the authorised company to act for other group companies
Once a company is appointed as an authorised company then the appointment continues to have effect until it is revoked. The authorised company as reporting body is responsible for submitting the statements of allocated disallowances or allocated exemptions as necessary.
The authorised company submits the statements to the tax office that is responsible for its own corporation tax affairs.
The authorised company is also responsible for submitting any revised statements as necessary on behalf of the other group companies.
The application to be appointed as an authorised company must include a statement from each of the other group companies that they agree to be bound by any statement of allocated disallowances or allocated exemptions or any revised statement delivered by the authorised company to HMRC.
The companies included in the statement must also certify that the only way that the financing expense or financing income amount can be amended is through the submission of a revised statement. Submission of an amended tax return to change the financing expense or financing income amount will not be accepted as amending the financing expense or financing income amount (regulations 4(5) and 19(5) of SI 2009/3173).
If a new company joins the group, such a statement is not binding on them, since a new company must either gives its own consent or the appointment is regarded as revoked (see CFM91490).