CFM91330 - Debt cap: introduction to allocating the disallowance and exemption: who makes the statements?

This guidance applies to worldwide group periods of account ending before or straddling 1 April 2017.

The reporting body

It is the reporting body that is responsible for submitting to HMRC statements of allocated disallowances. The reporting body is defined for both statements of disallowances and exemptions as:

• the company appointed by the group as an authorised company to act as the reporting body; or
• the companies to which the statement applies acting jointly.

To avoid confusion most groups will appoint an authorised company to act as the reporting body.

Statements of Allocated Disallowances

For a statement of allocated disallowances the authorised company is appointed as the reporting body by the relevant group companies. Relevant group company is explained in CFM90240. Each company that is a relevant group company for the accounting period has to sign the appointment notification. The company that is chosen as the authorised group company must be ‘one of their number’ (TIOPA10/S276 (1)) in other words it must be a relevant group company. There is, however, no other restriction - it is entirely up to the group which relevant group company is chosen.

Statements of allocated exemptions

For a statement of allocated exemptions the authorised company is appointed as the reporting body by the UK group companies. UK group company is explained in CFM90250. Each company that is a UK group company for the accounting period has to sign the appointment notification. As with statements of allocated disallowances, there is no restriction on the company that is chosen as the authorised company, except that it must be a UK group company.

Many groups are likely to appoint the same company to make both types of statement: see CFM91450.