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This article provides a comprehensive guide to using the group relief functionality in Silverfin for both claiming and surrendering group relief. Group relief allows companies within a group to transfer losses to offset taxable profits of another group member, reducing the overall tax liability. Follow the detailed steps below to ensure accurate configuration and compliance with the group relief process in Silverfin.

Table of contents 

• Prerequisites for Group Relief
• Process for Claiming Group Relief
• Process for Surrendering Group Relief
• Final Output: CT600 Supplementary Form
• Troubleshooting Common Issues
• Best Practices
• Additional Support

Prerequisites for Group Relief

Before using the group relief functionality, you must configure the company as a member of a group or consortium for group relief purposes. This is a critical step, as it impacts both disclosures and the visibility of necessary input fields.

Step 1: Navigate to the Return Information Schedule

• Open the Return Information schedule in Silverfin for the relevant company.
  
• Locate the Groups section.

Step 2: Enable Group Membership

• Check the box labeled 'Is the company a member of a group or consortium for group relief purposes?'.
• Important: If this option is not selected, the row in the Losses Memorandum for entering group relief surrender amounts will not be visible.

Step 3: Save Changes

• Ensure the setting is saved before proceeding to other schedules.

Process for Claiming Group Relief

To claim group relief, you need to enter the claim amount in the Taxable Income Schedule, reconcile it in the Group Relief Schedule, and provide authorization details in the Return Information Schedule. Follow these steps carefully.

Step 1: Enter the Group Relief Claim in the Taxable Income Schedule

1. Navigate to the Taxable Income Schedule.
2. Enter the Group Relief claim amount.
   • Validation Rule: The group relief claim cannot reduce the total taxable profits below zero. Ensure the claim amount complies with this rule to avoid validation errors.
3. Save Changes.

Step 2: Reconcile the Claim in the Group Relief Schedule

1. Navigate to the Group Relief Schedule.
   • You will notice an unreconciled indicator next to the claimed amount in either Part 1 (standard group relief claim) or Part 3 (carried forward losses claim). This indicates that the amount entered in the Taxable Income Schedule must be matched here.
2. Enter Claim Details.
   • For a standard group relief claim (Part 1):
     • Enter the name of the surrendering company.
     • If the accounting period of the surrendering company differs from the claiming company, provide the start and end dates of the surrendering company’s accounting period.
     • Enter the tax reference number of the surrendering company.
     • Input the amount claimed, ensuring it matches the amount entered in the Taxable Income Schedule.
   • For a carried forward losses claim (Part 3):
     • Follow the same process as above, but enter the details in Part 3 of the Group Relief Schedule.
     • Ensure the amount matches the Taxable Income Schedule.
3. Save Changes.

Step 3: Provide Authorization Details in the Return Information Schedule

1. Return to the Return Information Schedule.
2. Populate Group Relief Claim Authorization Details.
   • Enter the name of the authorised company.
   • Check the box to confirm that the claim has been authorised.
   • Provide the full name of the person authorising the claim and their status (e.g., director, company secretary).
   • Note: If a group relief claim is entered but authorization details are missing, the Return Information Schedule will show an unreconciled status.
3. Save Changes.

Process for Surrendering Group Relief

To surrender losses for group relief, you need to enter the surrender amount in the Losses Memorandum, reconcile it in the Group Relief Schedule, and provide authorisation details in the Return Information Schedule. Follow these steps carefully.

Step 1: Enter the Surrender Amount in the Losses Memorandum

1. Open the Losses Memorandum for the company surrendering losses.
2. Enter the Surrender Amount.
   • Locate the field for group relief surrender.
   • Enter the amount of losses being surrendered, specifying whether they are:
     • Losses in the current period.
     • Carried forward losses.
   • Note: The row for entering group relief surrender amounts will only be visible if the company is marked as a group member in the Return Information Schedule (see Prerequisites).
3. Save Changes.

Step 2: Reconcile the Surrender in the Group Relief Schedule

1. Navigate to the Group Relief Schedule.
   • Locate Part 2 (standard group relief surrender) or Part 4 (carried forward losses surrender).
2. Enter Surrender Details.
   • Enter the amount surrendered, ensuring it matches the amount entered in the Losses Memorandum.
   • Provide the name of the claiming company.
   • If the accounting period of the claiming company differs from the surrendering company, provide the start and end dates of the claiming company’s accounting period.
   • Enter the tax reference number of the claiming company.
3. Save Changes.

Step 3: Provide Authorization Details in the Return Information Schedule

1. Return to the Return Information Schedule.
2. Populate Group Relief Surrender Authorization Details:
   • Locate the Group relief - details of company surrendering relief section.
   • Most fields (e.g., company name, tax reference) are pre-populated based on the current company.
   • Enter the full name of the person authorising the surrender and their status (e.g., director, company secretary).
3. Save Changes.

Final Output: CT600 Supplementary Form

Once all steps are completed for either claiming or surrendering group relief, Silverfin will automatically generate the CT600C supplementary form as part of the CT600 template. This form will include all relevant group relief details, such as:

• Claimed or surrendered amounts.
• Details of the surrendering or claiming company.
• Authorization information.
  
  

To verify:

1. Open the CT600 template in Silverfin.
2. Check that the CT600C form is included at the end of the template.
3. Review the populated fields to ensure accuracy.

Troubleshooting Common Issues

Unreconciled Indicators

• If you see an unreconciled indicator in the Group Relief Schedule, ensure the amounts entered in the Taxable Income Schedule (for claims) or Losses Memorandum (for surrenders) match those in the Group Relief Schedule.
• Check that authorization details are fully populated in the Return Information Schedule.

Missing Group Relief Fields

• If fields for group relief are not visible in the Losses Memorandum or Group Relief Schedule, confirm that the company is marked as a group member in the Return Information Schedule.

CT600C Form Not Generated

• Ensure all required fields in the Taxable Income Schedule, Losses Memorandum, Group Relief Schedule, and Return Information Schedule are completed.
• Verify that the group relief claim or surrender amounts are non-zero.

Validation Errors in Taxable Income Schedule

• If you receive an error stating that the group relief claim reduces taxable profits below zero, adjust the claim amount to comply with the validation rule.

Best Practices

• Complete the Return Information Schedule First: Always configure the group membership setting before entering any group relief data to avoid missing fields or disclosures.
• Double-Check Amounts: Ensure that amounts entered in the Taxable Income Schedule or Losses Memorandum match those in the Group Relief Schedule to prevent reconciliation issues.
• Save Frequently: Save changes after completing each schedule to avoid data loss and ensure validations are applied.
• Review the CT600C Form: Before final submission, review the CT600C supplementary form to confirm that all group relief details are accurate and complete.

Additional Support

If you encounter issues or have questions about the group relief functionality in Silverfin, contact our support team via:

• Email: support@silverfin.com
• Help Center: Visit the Silverfin Help Center for additional guides and FAQs.
• Chat Use the in-app chat feature to connect with a support representative.