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HMRC internal manual

Corporate Finance Manual

Debt cap: statement of allocation: late submission of the revised statement: conditions A and B

When a later revised statement can be accepted

A revised statement made outside the statutory time period will only be accepted if conditions A and B are both met. These conditions are at regulation 13 of The Corporation Tax (Financing Costs and Income) Regulations 2009, SI 2009/3173, for disallowances, and regulation 28 for exemptions. Condition A considers the reason for the revision and condition B the amount of the difference between financing expense or income included in the previous statement and the amount in the revised statement.

Condition A

Condition A has four circumstances which are considered in detail in CFM91710.

Condition B

This condition allows HMRC to accept the revised statement if the amount of the difference between the financing expense amounts specified in the previous statement and the amounts specified in the revised statement is less than the change made to the chargeable profit as a result of the enquiry, determination or assessment in condition A.

The purpose of these provisions is a narrow one. Where a company’s self-assessment changes in line with the four circumstances in condition A, and the change affects the disallowance that can be allocated to a particular company, or the financing income that can be disregarded, the statement may be revised accordingly. But the provisions do not allow groups, on conclusion of an enquiry into one company, to make wholesale changes to the way in which disallowances or disregards are allocated. There are examples at CFM91720.