Annex 1: Minor changes in the law Change 24: Multiple claims for group relief: section 141
This change clarifies the position if more than one claim is made for a company’s loss etc.
Section 403A of ICTA limits a group relief claim to the smaller of:
	the “unused part of the surrenderable amount”; and
	the “unrelieved part of the claimant company’s total profits”.
Any claim for group relief reduces the surrendering company’s unused part of the surrenderable amount and the unrelieved part of the claimant company’s total profits. In general, earlier claims limit the amounts of later claims. So, in dealing with multiple claims, it is necessary to know in what order to deal with the claims.
Before Self Assessment for companies it was possible to say when a claim became final. Usually, that would be because the inspector had made an assessment giving effect to the relief and the appeal period had expired. So section 403A(6) of ICTA identifies the previously claimed group relief as that which has been the subject of claims that have become final.
Under Self Assessment it is not generally possible to know whether an enquiry will be made (paragraph 24 of Schedule 18 to FA 1998), so extending the time limit for withdrawing claims (paragraph 74(1)(b) of the Schedule). To overcome this practical difficulty there is a practice, set out in paragraph 80220 of the HMRC Company Taxation Manual, of simply dealing with claims in the order in which they are made (whether or not they are final).
This Act enacts the practice.
In most cases the total amount of relief is not affected by this change. But, in principle, the relief may be given to one company instead of another.
This change is in principle adverse to some taxpayers and favourable to others. But it is expected to have no practical effect as it is in line with generally accepted practice.