Finance Act 2022

GroupsU.K.

6(1)Section 71 (groups of companies) is amended in accordance with sub-paragraphs (2) to (4).

(2)In subsection (1), in the words after paragraph (b), after “is” insert “treated as”.

(3)In subsection (2)—

(a)after “Part” insert “, and save as otherwise provided by or under this Part,”;

(b)after “if” insert “—

(a)”;

(c)after “P” insert “,

(b)it had assumed all other obligations in relation to plastic packaging tax that, apart from this subsection, would have been obligations of P, and

(c)it had assumed all entitlements in relation to plastic packaging tax that—

(i)apart from this subsection, would have been entitlements of P, and

(ii)arose after P and the representative member began to be treated as members of the same group.”

(4)after subsection (3) insert—

“(3A)The Commissioners may by regulations make such further provision as they consider appropriate about—

(a)a body corporate that is treated as a member of a group being treated as if it had or had not assumed an entitlement given by or under this Part (ignoring the regulations) to another body corporate that is treated as a member of the group;

(b)the performance or discharge by a body corporate that is treated as a member of a group of an obligation or liability imposed by or under this Part (ignoring the regulations) on another body corporate that is treated as a member of the group.”

(5)In Schedule 13 (groups of companies)—

(a)in paragraph 3 (application for group treatment)—

(i)in sub-paragraph (1), omit the words from “from” to the end;

(ii)for sub-paragraph (3) substitute—

“(3)Where the Commissioners receive an application under sub-paragraph (1), they must, by notice to the applicants or the body that is to be the representative member—

(a)confirm whether they accept or refuse the application, and

(b)if they accept the application, specify a date from which the applicants are to be treated as members of the same group.

(4)The Commissioners must give the notice within the period of 90 days beginning with the day on which the application is received.

(5)The date mentioned in sub-paragraph (3)(b) must be within that period.”;

(b)in paragraph 5 (applications to modify group treatment)—

(i)in sub-paragraph (1), omit the words after paragraph (d);

(ii)for sub-paragraph (2) substitute—

“(2)Where the Commissioners receive an application under sub-paragraph (1), they must, by notice to the applicant and, in a case within sub-paragraph (1)(b), the proposed new representative member—

(a)confirm whether they accept or refuse the application, and

(b)if they accept the application, specify a date from which the application is to be treated as having been accepted.

(3)The Commissioners must give the notice within the period of 90 days beginning with the day on which the application is received.

(4)The date mentioned in sub-paragraph (2)(b) must be within that period.”