CTM05220 - Corporation tax: restriction on relief for carried-forward losses: excessive group deductions allowance allocated

CTA10/S269ZV(7) to CTA10/S269ZV(11)

The sum of the amounts allocated to each listed company by the group allowance allocation statement cannot exceed the group deductions allowance for the nominee’s accounting period.

If the statement:

• includes an amount that exceeds the maximum deductions allowance that can be allocated to a listed company (CTM05210), or
• allocates an amount that in total exceeds the group deductions allowance due for the nominee’s accounting period (CTM05190),

then the nominated company must submit a revised group allocation statement that is fully compliant within 30 days of the submission of the non-compliant statement, or any further period that HMRC allows (CTA10/S269ZV(7)).

Similarly, if a statement was compliant at the time it was submitted but subsequently ceases to be so, a revised statement must be submitted within 30 days of the statement ceasing to comply, or any further period that HMRC allows (CTA10/S269ZV(8)).

Further guidance on submission of revised statements can be found at CTM05200.

If a company fails to submit a revised statement when required in the above circumstances, an officer of HMRC may by written notice amend the statement as he or she sees fit, in order to make it compliant. At the same time as the notice is issued, HMRC must also send a copy of the notice to each of companies listed on the statement (CTA10/S269ZV(9) and (10)).

CTA10/S269ZV(11) disapplies the general time limits for amending a company tax return to the extent that the amendment relates to the submission of a group allowance allocation statement or revised statement.