CTM80125 - Groups: group relief: non-trading loan relationships deficits

ICTA88/S403 (1) and (2), ICTA88/S403ZC

Deficits on non-trading loan relationships can be surrendered and claimed as group relief ( CTM81500).

The surrendering company does not have to use the deficit against its other income in priority to surrendering some or all of it 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.

Accounting periods ending before 1 October 2002

For accounting periods ending before 1 October 2002 a deficit eligible for surrender as group relief must be claimed under FA96/S83 (2)(b) by the surrendering company. This is in addition to it consenting to surrender it as group relief.

There is guidance about FA96/S83 (2)(b) claims and time limits at CTM50835.

Accounting periods ending on or after 1 October 2002

For accounting periods ending on or after 1 October 2002 no FA96/S83 (2)(b) claim is required.