HMRC released a notice to announce changes in group relief regulation, under which simplified arrangements are provided for groups to carry forward losses. The new measure will have effect for losses incurred on or after April 1, 2017.
After noting the result of public consultation on this simplification opened on October 16, 2017, it is decided that for losses incurred on or after 1 April 2017, groups will be able to claim group relief for carried-forward losses by nominating a company to submit joint amended returns on behalf of other group members. In other words, simplified arrangements for group relief for in-year losses exist to allow an authorised company to act on behalf of authorising companies within a group to make group relief claims and surrenders. The authorised company submits a written statement consolidating the group relief claims and surrenders information required to amend the relevant company tax returns. These rules are known as ‘simplified arrangements’.
This measure aims at lightening the administrative burden on companies by eliminating the requirement to file separate returns for each company and mirroring the existing process for claiming group relief for in-year losses. It will have no effect on the amount of losses that can be claimed. This will be of particular benefit for groups that consist of a large number of companies and which have multiple group relief allocations that may be subject to numerous changes before being finalised.
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):