Debt cap: failure to make statements of allocation: circumstances when a group company can make an amended return
This guidance applies to worldwide group periods of account ending before or straddling 1 April 2017.
Reductions and amending the company return
A company required to make a default reduction of either its financing expenses or financing income may amend its tax return to reflect the reduction. The time limit for the amendment is 36 months from the end of the relevant period of account.
But where one of the four circumstances below applies then the company may amend its tax return before the date specified for each circumstance.
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), then the specified date is the last 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is a determination (under FA98/SCH18/PARA36) made in respect of a relevant group company or UK group company which is superseded by a self-assessment (per FA98/SCH18/PARA40) then the specified date is 30 days from the delivery of the company return.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 the specified date is the last 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Circumstance 4 - determination by HMRC is superseded
- Where a determination of disallowed amounts has been made by HMRC (CFM91910), but that determination is superseded by the ultimate UK parent company providing the necessary information, any company that is affected may amend its CTSA return within 30 days of the information being provided.