SCHEDULE 18 continued PART VII
54 A claim under any provision of the Corporation Tax Acts for a relief, an allowance or a repayment of tax must be for an amount which is quantified at the time when the claim is made.
55 Subject to any provision prescribing a longer or shorter period, a claim for relief under any provision of the Corporation Tax Acts must be made within six years from the end of the accounting period to which it relates.
56 A company which has made a claim or election under any provision of the Corporation Tax Acts (by including it in a return or otherwise) and subsequently discovers that a mistake has been made in it may make a supplementary claim or election within the time allowed for making the original claim or election.
57 (1) This paragraph applies to a claim or election for tax purposes which affects only one accounting period (“the relevant accounting period”).
(2) If notice has been given under paragraph 3 requiring a company to deliver a company tax return for the relevant accounting period, a claim or election by the company which can be made by being included in the return (as originally made or by amendment) must be so made.
(3) If a company has delivered a company tax return for the relevant accounting period, a claim or election made by the company which could be made by amending the return is treated as an amendment of the return.
The provisions of paragraph 15 (amendment of return by company) apply.
(4) Schedule 1A to the [1970 c. 9.] Taxes Management Act 1970 (claims and elections not included in returns) applies to a claim or election made by a company which cannot be included in a company tax return for the relevant accounting period.
This applies in particular to a claim or election made—
(a) before any notice is given under paragraph 3 requiring a company tax return for the relevant accounting period, or
(b) at a time when its return for the relevant accounting period cannot be amended.
58 (1) This paragraph applies to a claim or election for tax purposes if—
(a) the event or occasion giving rise to it occurs in one accounting period (the period to which it “relates”), and
(b) it affects one or more other accounting periods (whether or not it also affects the period to which it relates).
(2) If a company makes a claim or election which—
(a) relates to an accounting period for which the company has delivered a company tax return and could be made by amendment of the return, or
(b) affects an accounting period for which the company has delivered a company tax return and could be given effect by amendment of the return,
the claim or election is treated as an amendment of the return.
The provisions of paragraph 15 (amendment of return by company) apply.
(3) Schedule 1A to the [1970 c. 9.] Taxes Management Act 1970 (claims and elections not included in returns) applies to a claim or election made by a company if or to the extent that it is not—
(a) made by being included (by amendment or otherwise) in the company tax return for the accounting period to which it relates, and
(b) given effect by being included (by amendment or otherwise) in company tax returns for the accounting periods aff effect subject to any express provision to the contrary.
(2) Nothing in those paragraphs affects the time limit or any other conditions for making a claim or election.
(3) Where Schedule 1A to the [1970 c. 9.] Taxes Management Act 1970 applies by virtue of any of those paragraphs and the claim or election results in an increase in the amount of tax payable, all such adjustments by way of assessment or otherwise shall be made as are necessary to give effect to it.
61 (1) Paragraphs 62 to 64 have effect to allow certain claims, elections, applications and notices to be made or given, or if previously given to be revoked or varied, where—
(a) an amendment of a company tax return is made under paragraph 34(2)(b) (amendments of other returns required in consequence of closure notice) which has the effect of increasing the amount of tax payable by a company,
(b) a discovery assessment is made, or
(c) an assessment is made under paragraph 76 (recovery of excessive group relief).
(2) Paragraphs 62 to 64 do not apply in relation to an assessment made in a case involving fraudulent or negligent conduct on the part of—
(a) the company, or
(b) a person acting on behalf of the company, or
(c) a person who was a partner of the company at the relevant time.
In such a case more limited provision is made by paragraph 65.
(3) In paragraphs 62 to 64 “the relevant accounting period”, in relation to the time limit for making a consequential claim, election, application or notice, means—
(a) in relation to an amendment of a company tax return under paragraph 34(2)(b), the accounting period in which the closure notice was issued;
(b) in relation to an assessment, the accounting period in which the assessment was made.
62 (1) A claim, election, application or notice to which this paragraph applies—
(a) may be made or given at any time within one year from the end of the relevant accounting period, or
(b) if previously made or given may at any such time be revoked or varied—
(i) in the same manner as it was made or given, and
(ii) by or with the consent of the same person or persons who made, gave or consented to it (or, if a person has died, by or with the consent of his personal representatives),
unless, by virtue of any enactment, it is irrevocable.
(2) This paragraph applies to a claim, election, application or notice—
(a) relating to the accounting period in respect of which the amendment or assessment is made, or
(b) made or given by reference to an event occurring in that period,
whose making, giving, revocation or variation has or could have the effect of reducing a relevant liability of the company.
(3) The following are relevant liabilities of the company for this purpose—
(a) the increased liability to tax resulting from the amendment or assessment;
(b) any other liability to tax of the company—
(i) for the accounting period to which the amendment or assessment relates, or
(ii) for any subsequent accounting period ending not later than one year after the end of the relevant accounting period.
(4) Where a claim, election, application or notice is made, given, revoked or varied by virtue of this paragraph, all such adjustments shall be made, whether by way of discharge or repayment of tax or the making of amendments, assessments or otherwise, as are required to take account of the effect of the taking of that action on any person’s liability to tax for any chargeable period.
(5) The provisions of the [1970 c. 9.] Taxes Management Act 1970 relating to appeals against decisions on claims apply with any necessary modifications to a decision on the revocation or variation of a claim by virtue of this paragraph.
(6) This paragraph has effect subject to—
paragraph 63 (consequential claims etc. affecting tax liability of another person), and
paragraph 64 (consequential claims etc. not to give rise to reduction in liability).
63 (1) If the effect of the exercise by any person of a power conferred by paragraph 62 would be to alter the liability to tax of another person, the power may not be exercised except with the consent in writing of that other person or, if he has died, of his personal representatives.
(2) Where such a power is exercised so as to increase the liability to tax of another person, neither paragraph 61 above nor section 43A of the [1970 c. 9.] Taxes Management Act 1970 (which makes corresponding provision in relation to income tax or capital gains tax) applies in relation to any amendment or assessment made because of that increased liability.
(3) In this paragraph “tax” includes income tax or capital gains tax.
64 (1) If in any case—
(a) one or more claims, elections, applications or notices are made, given, revoked or varied under paragraph 62 in consequence of an amendment or assessment, and
(b) the total of the reductions in liability to tax resulting from that action would exceed the additional liability to tax resulting from the amendment or assessment,
the excess is not available to reduce any liability to tax.
(2) Where sub-paragraph (1) has the effect of limiting either—
(a) the reduction in a person’s liability to tax for more than one period, or
(b) the reduction in the liability to tax of more than one person,
the limited amount shall be apportioned between the periods or persons concerned.
(3) The apportionment shall be made in such manner as the Inland Revenue may specify by notice in writing to the person or persons concerned, unless notice is given under the following provision.
(4) If the person concerned gives (or the persons concerned jointly give) notice in writing to the Inland Revenue within the period of 30 days beginning with—
(a) the day on which notice under sub-paragraph (3) is given to the person concerned, or
(b) where more than one person is concerned, the latest date on which such notice is given to any of them,
the apportionment shall be made in such manner as may be specified in the notice given by the person or persons concerned.
(5) In this paragraph “tax” includes income tax or capital gains tax.
65 (1) This paragraph applies where an assessment is made on a company in a case involving fraudulent or negligent conduct on the part of—
(a) the company, or
(b) a person acting on behalf of the company, or
(c) a person who was a partner of the company at the relevant time.
(2) If the company so requires, effect shall be given in determining the amount of the tax charged by the assessment to any relief or allowance to which the company would have been entitled for that accounting period on a claim or application made within the time allowed by the Taxes Acts.
66 This Part of this Schedule applies to claims for relief under Chapter IV of Part X of the Taxes Act 1988 (group relief).
67 (1) A claim for group relief must be made by being included in the claimant company’s company tax return for the accounting period for which the claim is made.
(2) It may be included in the return originally made or by amendment.
68 (1) A claim for group relief must specify—
(a) the amount of relief claimed, and
(b) the name of the surrendering company.
(2) The amount specified must be an amount which is quantified at the time the claim is made.
69 (1) A claim for group relief may be made for less than the amount available for surrender at the time the claim is made.
(2) A claim is ineffective if the amount claimed exceeds the amount available for surrender at the time the claim is made.
(3) For these purposes the amount available for surrender at any time is calculated as follows.
Determine the total amount available for surrender under section 403 of the Taxes Act 1988—
(a) on the basis of the information in the company’s company tax return, and
(b) disregarding any amendments whose effect is deferred under paragraph 31(3).
Then deduct the total of all amounts for which notices of consent have been given by the company and not withdrawn.
(4) Where one or more claims are withdrawn on the same day as one or more claims are made, the withdrawals are given effect first.
(5) Where more than one claim is made on the same day, and the claims together take the amount claimed over the limit of what is available for surrender, the Inland Revenue may determine which of the claims is to be ineffective.
(6) The power under sub-paragraph (5) shall not be exercised to any greater extent than is necessary to bring the total amount claimed within the amount available for surrender.
70 (1) A claim for group relief requires the consent of the surrendering company.
(2) A consortium claim also requires the consent of each member of the consortium.
(3) The necessary consent or consents must be given—
(a) by notice in writing,
(b) to the officer of the Board to whom the surrendering company makes its company tax returns,
(c) at or before the time the claim is made.
Otherwise the claim is ineffective.
(4) A claim for group relief is ineffective unless it is accompanied by a copy of the notice of consent to surrender given by the surrendering company.
(5) A consortium claim is ineffective unless it is also accompanied by a copy of the notice of consent to surrender given by each member of the consortium.
71 (1) Notice of consent by the surrendering company must contain all the following details—
(a) the name of the surrendering company;
(b) the name of the company to which relief is being surrendered;
(c) the amount of relief being surrendered;
(d) the accounting period of the surrendering company to which the surrender relates;
(e) the tax district references of the surrendering company and the company to which relief is being surrendered.
Otherwise the notice is ineffective.
(2) Notice of consent may not be amended, but it may be withdrawn and replaced by another notice of consent.
(3) Notice of consent may be withdrawn by notice to the officer of the Board to whom the notice of consent was given.
(4) Except where the consent is withdrawn under paragraph 75 (withdrawal in consequence of reduction of amount available for surrender), the notice of withdrawal must be accompanied by a notice signifying the consent of the claimant company to the withdrawal.
Otherwise the notice is ineffective.
(5) The claimant company must, so far as it may do so, amend its company tax return for the accounting period for which the claim was made so as to reflect the withdrawal of consent.
72 (1) Where notice of consent by the surrendering company is given after the company has made a company tax return for the period to which the surrender relates, the surrendering company must at the same time amend its return so as to reflect the notice of consent.
(2) Where notice of consent by the surrendering company relates to a loss in respect of which relief has been given under section 393(1) of the Taxes Act 1988 (carry forward of trading losses), the surrendering company must at the same time amend its company tax return for the period or, if more than one, each of the periods in which relief for that loss has been given under section 393(1) so as to reflect the new notice of consent.
For this purpose relief under section 393(1) is treated as given for losses incurred in earlier accounting periods before losses incurred in later accounting periods.
(3) The time limits otherwise applicable to amendment of a company tax return do not prevent an amendment being made under sub-paragraph (1) or (2).
(4) If the surrendering company fails to comply with sub-paragraph (1) or (2), the notice of consent is ineffective.
73 (1) A claim for group relief may be withdrawn by the claimant company only by amending its company tax return.
(2) A claim for group relief may not be amended, but must be withdrawn and replaced by another claim.
74 (1) A claim for group relief may be made or withdrawn at any time up to whichever is the last of the following dates—
(a) the first anniversary of the filing date for the company tax return of the claimant company for the accounting period for which the claim is made;
(b) if notice of enquiry is given into that return, 30 days after the enquiry is completed;
(c) if after such an enquiry the Inland Revenue amend the return under paragraph 34(2), 30 days after notice of the amendment is issued;
(d) if an appeal is brought against such an amendment, 30 days after the date on which the appeal is finally determined.
(2) A claim for group relief may be made or withdrawn at a later time if the Inland Revenue allow it.
(3) The time limits otherwise applicable to amendment of a company tax return do not apply to an amendment to the extent that it makes or withdraws a claim for group relief within the time allowed by or under this paragraph.
(4) The references in sub-paragraph (1) to an enquiry into a company tax return do not include an enquiry restricted to a previous amendment making or withdrawing a claim for group relief.
An enquiry is so restricted if—
(a) the scope of the enquiry is limited as mentioned in paragraph 25(2), and
(b) the amendment giving rise to the enquiry consisted of the making or withdrawing of a claim for group relief.
75 (1) This paragraph applies if, after the surrendering company has given one or more notices of consent to surrender, the amount available for relief is reduced to less than the amount stated in the notice, or the total of the amounts stated in the notices, as being surrendered.
(2) The company must within 30 days withdraw the notice of consent, or as many of the notices as is necessary to bring the total amount surrendered within the new amount available for surrender, and may give one or more new notices of consent.
(3) The company must give notice in writing of the withdrawal of consent, and send a copy of any new notice of consent—
(a) to each of the companies affected, and
(b) to the Inland Revenue.
(4) If the surrendering company fails to act in accordance with sub-paragraph (2), the Inland Revenue may by notice to the surrendering company give such directions as they think fit as to which notice or notices are to be ineffective or are to have effect in a lesser amount.
This power shall not be exercised to any greater extent than is necessary to secure that the total amount stated in the notice or notices is consistent with the amount available for surrender.
(5) The Inland Revenue must at the same time send a copy of the notice to the claimant company, or each claimant company, affected by their action.
(6) A claimant company which receives—
(a) notice of the withdrawal of consent, or a copy of a new notice of consent, under sub-paragraph (3), or
(b) a copy of a notice containing directions by the Inland Revenue under sub-paragraph (4),
must, so far as it may do so, amend its company tax return for the accounting period for which the claim is made so that it is consistent with the new position with regard to consent to surrender.
(7) An appeal may be brought by the surrendering company against any directions given by the Inland Revenue under sub-paragraph (4).
(8) Notice of appeal must be given—
(a) in writing,
(b) within 30 days after the notice containing the directions was issued,
(c) to the officer of the Board by whom the notice was given.
76 (1) If the Inland Revenue discover that any group relief which has been given is or has become excessive, they may make an assessment to tax in the amount which in their opinion ought to be charged.
(2) This power is without prejudice to—
(a) the power to make a discovery assessment under paragraph 41(1);
(b) the making of all such adjustments by way of discharge or repayment of tax or otherwise as may be required where a claimant company has obtained too much relief, or a surrendering company has forgone relief in respect of a corresponding amount.
77 (1) The Treasury may by regulations make provision for arrangements under which—
(a) a claim for group relief may be made without being accompanied by a copy of the notice of consent to surrender given by the surrendering company, and
(b) one company may be authorised to act on behalf of two or more companies in the same group in amending their company tax returns for the purpose of claiming or surrendering group relief or revising the amounts of group relief claimed or surrendered by them.
(2) Regulations under this paragraph may add to, exclude or modify the operation of any provisions of this Part of this Schedule to such extent as the Treasury think necessary or expedient for the purpose of, or in connection with, such arrangements.
(3) Provision may in particular be made—
(a) altering the conditions for making and withdrawing claims for group relief, and
(b) giving the Inland Revenue power to recover from the authorised company or another company in the group any amount which might be recovered from the claimant company by an assessment under paragraph 76.
78 This Part of this Schedule applies to claims for capital allowances, that is, allowances under the [1990 c. 1.] Capital Allowances Act 1990 or provisions to which the Tax Acts apply as if they were contained in that Act.
79 (1) A claim for capital allowances must be made by being included in the claimant company’s company tax return for the accounting period for which the claim is made.
(2) It may be included in the return originally made or by amendment.
80 A claim for capital allowances must specify the amount claimed, which must be an amount which is quantified at the time the claim is made.
81 A claim for capital allowances may be amended or withdrawn by the claimant company only by amending its company tax return.
82 (1) A claim for capital allowances may be made, amended or withdrawn at any time up to whichever is the last of the following dates—
(a) the first anniversary of the filing date for the company tax return of the claimant company for the accounting period for which the claim is made;
(b) if notice of enquiry is given into that return, 30 days after the enquiry is completed;
(c) if after such an enquiry the Inland Revenue amend the return under paragraph 34(2), 30 days after notice of the amendment is issued;
(d) if an appeal is brought against such an amendment, 30 days after the date on which the appeal is finally determined.
(2) A claim for capital allowances may be made, amended or withdrawn at a later time if the Inland Revenue allow it.
(3) The time limits otherwise applicable to amendment of a company tax return do not apply to an amendment to the extent that it makes, amends or withdraws a claim for capital allowances within the time allowed by or under this paragraph.
(4) The references in sub-paragraph (1) to an enquiry into a company tax return do not include an enquiry restricted to a previous amendment making, amending or withdrawing a claim for capital allowances.
An enquiry is so restricted if—
(a) the scope of the enquiry is limited as mentioned in paragraph 25(2), and
(b) the amendment giving rise to the enquiry consisted of the making, amending or withdrawing of a claim for capital allowances.
83 (1) This paragraph applies if the effect of a claim for capital allowances is to reduce the amount available by way of capital allowances for another accounting period of the company for which a company tax return has been delivered.
(2) The company has 30 days within which to make any necessary amendments of the company tax return for that other period.
(3) If it does not do so, the Inland Revenue may by notice in writing to the company amend the return to make it consistent with the amount available by way of capital allowances.
(4) The time limits otherwise applicable to amendment of a company tax return do not prevent an amendment being made under sub-paragraph (2) or (3).
(5) An appeal may be brought by the company against any such amendment.
(6) Notice of appeal must be given—
(a) in writing,
(b) within 30 days after notice of the amendment was issued,
(c) to the officer of the Board by whom the notice of amendment was issued.
84 (1) This paragraph applies in the following cases.
(2) The first case is where amounts may be brought into charge to tax either—
(a) in computing profits chargeable to tax under Case I of Schedule D, or
(b) as amounts within Case III or V of that Schedule.
(3) The second case is where amounts may be brought into charge to tax either—
(a) in computing profits charged to tax under Case I of Schedule D, or
(b) for the purpose of applying the basis commonly called the I minus E basis under which a company carrying on life assurance business is charged to tax on that business otherwise than under Case I of Schedule D.
In paragraph (b) “life assurance business” includes annuity business within the meaning of Chapter I of Part XII of the Taxes Act 1988.
(4) Where this paragraph applies, the Inland Revenue may by notice require a company—
(a) to produce to them such documents in the company’s power or possession, and
(b) to provide them with such information, in such form,
as they may reasonably require for the purpose of determining which basis of charge is to be used for an accounting period.
The provisions of paragraphs 27 to 29 (notice to produce documents, etc. for purposes of enquiry: supplementary provisions and penalty) apply in relation to such a notice.
(5) A determination by the Inland Revenue under this paragraph is final and conclusive as to the basis of charge to be used for the accounting period concerned.
85 (1) This paragraph applies where a company carrying on insurance business delivers a company tax return based wholly or partly on accounts drawn up using the method described in paragraph 52 of Schedule 9A to the [1985 c. 6.] Companies Act 1985.
That paragraph provides for a technical provision to be made in the accounts which is later replaced by a provision for estimated claims outstanding.
(2) Where this paragraph applies—
(a) the company may make any amendments of its return arising from the replacement of the technical provision at any time within twelve months from the date on which the provision was replaced, and
(b) the Inland Revenue may give notice of enquiry into the return at any time up to two years from that date.
(3) Nothing in this paragraph prevents notice of enquiry being given at any later time in accordance with the general rule in paragraph 24(3).