Finalised regulations for simplified group relief arrangements
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Finalised regulations for simplified group relief arrangements
Finalised regulations for simplified group relief arrangements
Wed 17 Jan 2018
SI 2018/9 amends the simplified group relief arrangements regulations (SI 1999/2975), to cater for loss relief reform introduced by F(No2)A 2017 Sch4. It comes into force on 30 January 2018.
Where there is a desire to include group relief for claims and surrenders of carried forward losses arising in accounting periods beginning on or after 1 April 2017 in the simplified group relief arrangement, a new application will need to be made for simplified group relief arrangements.
Applications for simplified arrangements must now state whether they cover: (i) group relief; (ii) group relief for carried forward losses; or (iii) both group relief and group relief for carried forward losses. There are different specimen statements where group relief for carried forward losses applies.
The simplified arrangements for group relief (SI 1999/2975) enable companies of a group to authorise a single group company to make group relief claims on their behalf. There may or may not be a requirement to include a notice of consent to surrender from the surrendering company, depending on whether the authorised company has given authority which is signed by an appropriate officer of that authorised company.
Action
With the introduction of the new provisions for group relief for carried forward losses, and once these draft regulations have been issued, it will be necessary to review the simplified arrangement documentation and update it as required so that it covers the new carried forward group loss relief rules. Simplified arrangements for group relief will also need to be reviewed when a group makes new acquisitions – so that any newly acquired companies can be added to the arrangement. It is also possible for consortium members to be part of a simplified arrangement for group relief.
To discuss any aspect of group relief for losses, please get in contact with a member of the Mazars corporate tax team.
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