Corporation Tax Act 2010 section 269ZSA

Group allowance nomination: former groups

Section 269ZSA allows companies that were members of a group to make a retrospective group allowance nomination after the group has ceased to exist for corporation tax purposes, provided no such nomination was already in place.

• Where a group ceases to qualify as a group and no group allowance nomination was in effect, the former members who were within the charge to corporation tax may jointly nominate one of their number as the nominated company for group deductions allowance purposes.
• The nomination takes effect from a stated date, which must be earlier than the date the group ceased to exist, and ends immediately before the group ceased to be a group — it does not matter whether the companies are still within the charge to corporation tax when the nomination is actually made.
• The nomination is treated as a standard group allowance nomination under section 269ZS, but with modifications: the effective date must pre-date the group's cessation, the nominated company need only have been a group member immediately before cessation, and the usual rules on revocation and termination of nominations do not apply.
• Only one such retrospective group allowance nomination may be made in respect of any given former group.