A company within a group can, in certain circumstances surrender a tax refund which is due to it to another member of that group. It can be to the advantage of the group as a whole because it can reduce the amount of interest for underpaid tax that the group is required to pay.
For these purposes, a group means a loss relief group as described in Group relief—loss relief group.
Conditions for the surrender of tax refunds
In order to surrender a tax refund, the surrendering company and the recipient company must:
- •
jointly give notice of the surrender to HMRC
- •
be members of the same group for the whole of the period:
- ◦
beginning at the start of the accounting period to which the refund in question relates, and
- ◦
ending on the date on which notice of the surrender is given—this period will very likely be longer than just the period to which the refund relates, as the relationship must persist up to the point of the notice, and
- ◦
- •
both
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