CH82282 - Penalties for Inaccuracies: Calculating the penalty: Potential lost revenue Corporation Tax Group Relief or S458 CTA10: Potential lost revenue
This guidance applies to returns and documents with a filing date on or after 1 April 2009 where the return covers a tax period beginning on or after 1 April 2008. See CH81011 for full details.
When calculating potential lost revenue (PLR), ignore the following reliefs.
- Group Relief (but see also CH82340 where the inaccuracy results in overstatement of group losses).
- Relief deferred under Section 458(4) & (5) CTA10 (relief in case of repayment or release of loan).
Note: Additional relief under Section 458 (1) to (3) that can be deducted from the additional S455 charge in the inaccurate return reduces the PLR on which a penalty may be due, but relief that is deferred to another accounting period under Section 458(4) & (5) does not reduce the PLR.
Exceptions to this are
- a penalty may still be charged on an inaccurate claim to relief
- Group Relief claims where the inaccuracy has the effect of creating or increasing an aggregate loss recorded for a group of companies, see CH82340.
For an example of