CIR – HMRC change their approach to appointing reporting companies

Groups without a reporting company should consider if there would be a net benefit to appointing one, factoring in not just the current group position but how this might change in the future (as the ability to carry forward unused allowances could provide cash tax savings depending on the group’s tax profile).

For groups that have a reporting company appointed, the position should be reviewed to confirm the reporting company appointment still has effect. There are a number of requirements for the appointment to be valid. In addition, changes in the group structure can result in a group ceasing to have a reporting company (due to the worldwide group changing for CIR purposes). Where a group does not have a validly appointed reporting company this may invalidate any CIR returns filed by the group.