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HMRC internal manual

Enquiry Manual

From
HM Revenue & Customs
Updated
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Companies: Rights and Obligations: Claims and Elections

TMA70/S42

FA98/SCH18/PARA 57(2)

FA98/SCH18/PARA 58(2)

FA98/SCH18/PARA 89 (old)

FA07/SCH24 

CTSA Years

Once a notice to deliver a Company Tax Return has been given, most claims that a company can make have to be included in a return. If such claims are made outside a return they should be sent back with an explanation that claims can only be made as part of the return.

A claim involving more than one accounting period is treated as amendments to all relevant returns that are capable of being amended.

If, or to the extent that, a claim

  • cannot be made in a return, or
  • by amendment of a return

the rules in TMA70/Sch 1A apply.

Group relief claims, capital allowances claims and claims for R&D tax credit etc. must be made in a return or amended return. Certain other claims (for example, repayments of income tax under CTA09/S3 - previously ICTA88/S6(2) ) cannot be made before a company delivers its return.

Periods with a filing date on or before 31 March 2009

A company can be liable to a penalty for an incorrect claim under FA98/Sch18/Para 20 where the claim is made in the return or under FA98/Sch18/Para 89 for making an incorrect statement or declaration in connection with a claim. The latter only applies to claims made under TMA70/Sch 1A.

Where a claim fails because the statutory conditions for the claim were not met, liability to a penalty still arises in respect of claims made in a return if the return was made fraudulently or negligently.

However, for claims under TMA70/Sch1A incorrect information would have to be supplied for a penalty to arise. Simply not meeting the statutory conditions for the claim would not make a company liable.

Periods beginning on or after 1 April 2008 with a filing date on or after 1 April 2009

A company can be liable to a penalty under FA07/SCH24 if it gives HMRC a return or other document that contains a deliberate or careless inaccuracy, seeCH80000+. A claim made under TMA70/SCH1A would be an ‘other document’.

Where a claim fails because the statutory conditions for the claim were not met, liability to a penalty still arises if the inaccurate claim was made deliberately or carelessly.

CTPF years and earlier

Claims are made to an officer in such form as HMRC may determine and may require a return of profits in support. For CTPF periods, group relief claims and a claim for payment of a tax credit must be made in the return (or amendment to a return).

A company is liable to a penalty if it fraudulently or negligently makes any incorrect return, statement or declaration (including the declaration on the return form) in connection with a claim. A claim that fails because the statutory conditions are not met does not necessarily mean that the incorrect return, statement or declaration has been made fraudulently or negligently. You will need to establish that the incorrect return, declaration or statement was made fraudulently or negligently before you can charge a penalty.