CTM80240 - Groups: group relief: overlapping period: amount of any prior surrenders attributable thereto

ICTA88/S403A (4)

To calculate the ‘amount of any prior surrenders attributable to the overlapping period’ for the purposes of determining the ‘unused part of the surrenderable amount for the overlapping period’ ( CTM80235) for any claim (the ‘relevant claim’), follow these steps.

Step 1

• Identify each earlier claim ( CTM80220),
• which involves any part of the surrenderable amount for the accounting period of the surrendering company for the relevant claim, and
• which has not been withdrawn.

Step 2

• For each such earlier claim,
• treat the amount of group relief allowed under that claim as being for the overlapping period ( CTM80225) in that claim,
• determine the common period, if any, shared by the overlapping period in that claim and the overlapping period in the relevant claim,
• apportion part of the amount of group relief allowed under that claim to the common period. This apportionment will usually be on a time basis, comparing the length of common period to the length of the overlapping period in that claim. However if that gives an unjust or unreasonable result, some other basis may be used ( CTM80260).

Step 3

• Add up all the apportioned amounts from Step 2. The result is the ‘amount of any prior surrenders attributable to the overlapping period’ for the relevant claim.

There is an example at CTM80255.