CTM80440 - Groups: group relief: example - surrender of excess capital allowances
Company H is a 100% per cent subsidiary of Company C. Both companies prepare their accounts to 31 December. The accounts and computations of the companies for the 12 months to 31 December 2001 show the following.
| Company C | |
| Trading profits | £3,000 |
| Income from special leasing | £1,000 |
| Capital allowances in respect of special leasing | £1,500 |
| Company H | |
| Trading profits | £1,000 |
Company H claims relief , with the consent of Company C, in respect of the excess capital allowances (CTM80120) of £500 of Company C. Note that Company C can surrender all its excess capital allowances, notwithstanding it has other profits for the accounting period.
The CT computations for the accounting period to 31 December 2001 are as follows.
| Company C | |
| Sch D, Case I | £3,000 |
| Sch D, Case VI (Income £1,000 less CAs £1,000) | Nil |
| CT profits | £3,000 |
| Company H | |
| Sch D, Case I | £1,000 |
| Group relief claimed (ICTA88/S403ZB) | £500 |
| CT Profits | £500 |
Company C has no balance of capital allowances available to carry forward as follows.
| Capital allowances in respect of special leasing | £1,500 | |
| Used in computation | £1,000 | |
| Surrendered as group relief | £500 | £1,500 |
| Available to carry forward | Nil |
