Claims were too late

The claimant taxpayers were wholly-owned subsidiaries of D Holdings plc.

In March 2006 their accountants submitted tax returns and accounts for D Holdings and the taxpayers for the year ended 31 March 2005. They included consortium claims for group relief in respect of losses made by A Ltd CCC Ltd and CD Ltd – although it was accepted the claim was incorrect.

A disclosure of tax avoidance schemes document was also submitted.

One year later the claimants and D Holdings submitted corporation tax self-assessment returns for the year ended 31 March 2006 claiming group relief for losses made by CCC Ltd and CD Ltd.

Again the group relief claimed by D Holdings plc exceeded its entitlement to absorb the losses.

When the taxpayers realised errors had been made they submitted revised computations for each year of claim. The new figures were generated in...