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HMRC internal manual

International Manual

Transfer Pricing: methodologies: Mutual Agreement Procedure: consequential claims following MAP

Interpretation of S124(4) TIOPA 2010 and Paragraph 49 SP01/11

TIOPA10/S124(4) permits claims to relief to be made within a year following the notification of the solution or mutual agreement. However it does not specify whether the ability to amend claims is restricted to the party to the MAP, or whether it extends more widely to encompass, for example, group companies that wish to revise their group relief claims following a disclaimer by the MAP applicant. A disclaimer of a relief by the party to the MAP may free up reliefs eg group relief, that can be used elsewhere in the group. If S124(4) were interpreted widely it would allow a further claim by another group company provided it was made within a year of the MAP settlement.

HMRC interprets S124(4) widely, and will accept revised claims to relief by group companies as a consequence of a MAP settlement, even if the claims relate to a closed year, provided they are made within twelve months of the notification to the MAP applicant of the MAP settlement.

Paragraph 49 of SP01/11 (which explains the consequences of a MAP settlement on claims to relief; also see INTM423100, first paragraph) should be interpreted in that way.