CFM91680 - Debt cap: statement of allocation: late submission of initial statement

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

What happens if an initial statement is submitted late?

A statement of allocation of disallowance or exemption that is submitted late will only be accepted in the two circumstances, set out in SI 2009/3173 regulations 12 and 27, these are that:

• if it was submitted without unreasonable delay, and previous statements of allocation of disallowance or exemption (as appropriate) were received by the specified time - in other words, the lateness is a ‘first offence’ by the group. ‘Unreasonable delay’ is not defined, but a delay of a few days will not be unreasonable, while a delay of several weeks almost certainly will be, or
• if it was late for exceptional reasons beyond the control of the reporting body.

There is no definition of exceptional reasons in the debt cap rules and when deciding whether or not the reasons were exceptional the full facts for the delay should be taken into account. Each case will be decided on its own merits. However, the general approach adopted should be in line with the interpretation of ‘reasons beyond the company’s control’ given in Statement of Practice 5/01 (see CTM97060).