CTM97020 - Corporation Tax self assessment (CTSA): group relief - general: consent to surrender

Except where a company is a member of a simplified arrangement (see CTM97600 onwards), every claim to group relief requires the consent of the surrendering company (FA98/SCH18/PARA70 (1)).

From 29 December 2000 a company in a simplified arrangement can claim group relief in its original return without submitting a copy notice of consent, provided the authorised company (CTM97660) gives its authorisation by counter-signing the claimant’s tax return (see CTM97005).

Group relief

The consent to surrender must meet a number of formal conditions that are set out below. Unless all of the conditions are met, the group relief claim is not valid.

Surrendering companies must give notice in writing, to the officer of the Board to which they make returns, of consents to surrender group relief. They must do this at or before the time the claim is made (FA98/SCH18/PARA70 (3)).

A copy of the notice of consent to surrender must accompany any claim for group relief (FA98/SCH18/PARA70 (4)). From 29 December 2000 a company in a simplified arrangement can claim group relief in its original return without submitting a copy notice of consent (see CTM97005).

Consortium claim

A consortium claim to group relief requires the consent of each member of the consortium, in addition to the consent of the surrendering company (FA98/SCH18/PARA70 (2)).

Similarly, a copy of the notice of consent to surrender given by each member of the consortium must accompany a consortium claim (FA98/SCH18/PARA70 (5)).

Contents of notice of consent to surrender

FA98/SCH18/PARA71 sets out the details that the surrendering company must include in a notice of consent.

These are:

  1. the name of the surrendering company,
  2. the name of the company to which relief is being surrendered,
  3. the amount of relief being surrendered,
  4. the accounting period of the surrendering company to which the surrender relates,
  5. the Tax Office references for the claimant and surrendering companies.

For claims to group relief for carried-forward losses from 1 April 2017, the notice of consent must additionally identify the particular loss and/or other amount that is being surrendered, and specify the relevant provision under which the amount was carried forward to the surrender period (FA98/SCH18/PARA71A).

For accounting periods ending on or after 1 April 2017, a surrendering company that has itself had relief for an amount it is now consenting to surrender must amend its company tax return for the accounting period to reflect the notice of consent. It must make that amendment at the same time as giving the notice of consent. If it does not the notice of consent is ineffective (FA98/SCH18/PARA72).