CTM80215 - Groups: group relief: non-coinciding accounting periods or group relationships - multiple claims
ICTA88/S403A
A broad overview of Section 403A is at CTM80210. Where there are a number of claims or surrenders made by companies in a group, and:
- some accounting periods do not coincide, or
- not all of the claimant or surrendering companies are members of the group throughout,
there are detailed rules in Section403A for calculating the amount of relief. Taking each claim in turn (CTM80220) establish the ‘overlapping period’ (CTM80225) and then:
Step 1
- work out the surrenderable amount for the overlapping period (CTM80230),
- reduce this amount by the amount of any prior surrenders attributable to the overlapping period (CTM80240).
The result of Step 1 is the ‘unused part of the surrenderable amount for the overlapping period’.
Step 2
- work out the claimant company’s total profits for the overlapping period (CTM80230),
- reduce this amount by the amount of any previously claimed group relief attributable to the overlapping period (CTM80245).
The result of Step 2 is the ‘unrelieved part of the claimant company’s total profits for the overlapping period’.
The amount of the group relief claim must not exceed the smaller of the results of Step 1 and Step 2. There is an example at CTM80255.
For guidance about the transitional provisions where the overlapping period falls wholly or partly before 2 July 1997 see CTM80250.
