Debt cap: statement of allocation: late submission of revised statement: condition A
This guidance applies to worldwide group periods of account ending before or straddling 1 April 2017.
The four circumstances of condition A
A late revised statement can only be accepted if there has been an enquiry, assessment or determination within one of the four circumstances below.
Circumstance 1 - enquiry
There is an enquiry into the tax return of a relevant group company (for statements of allocated disallowances) or a UK group company (for statements of allocated exemptions) which is not resolved within the statutory time limit for revised statements. The deadline is 36 months after the relevant period of account. In which case a revised statement will be accepted as long as it is received by HMRC by the latest of:
- 30 days after the enquiry is completed;
- if after the enquiry the return is amended, then 30 days after the amendment is issued; or
- if an appeal is brought against the amendment, 30 days after the appeal is finally determined.
Circumstance 2 - determination and subsequent self assessment
If there is a determination (under FA98/SCH18/PARA36) made in respect of a relevant group company or UK group company which is superseded by a self-assessment (per FA98/SCH18/PARA40) then a revised statement will be accepted as long as it is received by HMRC within 30 days of delivery of the company return.
Circumstance 3 - discovery
If a discovery assessment or a discovery determination (under FA98/SCH18/PARA41) is made on a relevant group company or UK group company then a revised statement will be accepted as long as it is received by HMRC by the latest of:
- 30 days after the discovery assessment or discovery determination is made;
- if an appeal is brought against the discovery assessment or discovery determination then 30 days after the appeal is finally determined.
Circumstance 4 - amendment of other returns made by the company
FA98/SCH18/PARA34(2A) (inserted by FA08/S119(6), and having effect from 1 April 2010), allows HMRC, on concluding an enquiry into one return made by a company, to give notice of amendment of other returns made by the company where these are necessary to give effect to the conclusions in the closure notice - for example, if an expense is disallowed in one period, but is allowable in the subsequent period.
Where such an amendment is made, a revised statement of allocation is acceptable provided it is received within 30 days of the notice of amendment being given or, if the company appeals, within 30 days of final determination of the appeal.