§ Mr. BurnsTo ask the Chancellor of the Exchequer what criteria the Inland Revenue applies when deciding whether to accept a late claim for group relief.
§ Mr. DorrellThe Inland Revenue has applied criteria set out in a reply given by the then Financial Secretary on 10 December 1985 at column592. These criteria covered both claims for group relief and elections for continuation treatment on a change in partnership. This has given rise to some uncertainty in practice. From today, a late claim for group relief will be accepted where it can be shown that:
—the Inland Revenue contributed materially to the failure to submit a timely claim, for example by misleading the claimant and failing to rectify the error before the statutory time limit expired; or—for reasons beyond his or her control, for example due to a debilitating illness, a person vitally concerned in the making of a claim was not available at a crucial time; or—for reasons beyond the claimant company's control or its agent's control, the need for the claim could not have been perceived before the time limit expired.In each case, a claim will only be accepted where it can be shown that, although late, it was made as soon as reasonably possible in all the circumstances. A late claim will not be accepted where the delay is attributable to:
—oversight or negligence on the part of a claimant company or its agent; or—failure, without good reason, to compute the necessary figure; or489W—the desire to avoid commitment pending clarification of the effects of making a claim.A claimant company wishing to have a late claim considered under these guidelines should apply to the inspector of taxes dealing with its affairs as soon as reasonably possible in the circumstances.