CTM80120 - Groups: group relief: excess capital allowances

ICTA88/S403 (1) and (2), ICTA88/S403ZB

Excess capital allowances can be surrendered and claimed as group relief ( CTM81500). They are excess special leasing allowances which fall to be given under CAA01/S260 (CA20040 and CA29450). These are the excess of special leasing allowances over the income of qualifying special leasing activities.

That income is the income before deduction of:

• any losses of any other period, or
• any capital allowances.

Any capital allowances carried forward from an earlier period are not included in the calculation of excess capital allowances.

The surrendering company does not have to use the excess capital allowances against its other income in priority to surrendering them as group relief to a fellow group member. Nor is the amount that can be surrendered restricted to the excess over other profits for the accounting period of surrender.

See the example at CTM80440.