CTM80143 - Groups: group relief: order of relief for amounts which can be surrendered

ICTA88/S403 (3)

Excess charges, Schedule A losses, management expenses and non-trading losses on intangible fixed assets can be surrendered as group relief only to the extent that they exceed the surrendering companies other profits of the accounting period (CTM80142) (or in the case of a subsidiary resident in another European Economic Area territory meet the conditions at CTM80500 onwards).

Where a surrendering company has more than one of these types of amount available for surrender, ICTA88/S403 (3) directs that the order of surrender is:

• first, charges, then
• Schedule A losses, then
• management expenses, and finally
• non-trading losses on intangible fixed assets.

The legislation does not specify the order of surrender of trade losses, excess capital allowances or non-trading loan relationship deficits. The surrendering company is free to choose which of these it surrenders in what order.