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HMRC internal manual

COTAX Manual

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HM Revenue & Customs
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Claims / reliefs: other reliefs: group and consortium relief - dealing with excessive relief

This subject is presented as follows

Amount available for surrender reduced
Recovering excessive relief 

Amount available for surrender reduced

A company may not surrender more as group relief than is shown to be surrenderable in its return. However it may happen that, after a surrendering company has given one or more notices of consent, the amount it has available for relief is reduced to less than the total of the amounts previously surrendered. In that case, the total group relief allowed has to be brought within the total of the amount available for surrender.

The surrendering company must withdraw one or more notices of consent and, if appropriate, it may give one or more new notices, to bring the total amount surrendered within the new amount available for surrender. It must do this within 30 days of the date on which the amount available for surrender is reduced.

The notice or notices must be in writing and copies must be sent to each of the companies affected and to HMRC.

Where the surrendering company fails to take action, HMRC may direct which claims are to be ineffective or to have effect in a lower figure to the extent necessary to bring the total amount surrendered as group relief within the total of the amount available for surrender by notice to the surrendering company, and must send a copy of the notice to each claimant company affected.

If a claimant company is able to amend its return for the AP for which less or no group relief is now available following receipt of a copy notice, it must do so. See COM53090 for more information.

Recovering excessive relief

Legislation gives HMRC power to make an assessment to tax to recover group relief which was excessive when it was given or has become excessive as a result of a reduction in the amount of group relief available for surrender. See COM53090 for more information.

See COM53013 for legislation applying to this subject.