CTM80130 - Groups: group relief: excess charges

ICTA88/S403 (1) and (3), ICTA88/S403ZD (1) and (2), ICTA88/S403ZE

Excess charges can be surrendered and claimed as group relief ( CTM81500).

Excess charges means the excess of charges on income ( CTM09000 onwards) paid in the accounting period over all the profits ( CTM80142) of the accounting period.

Excess charges can only be surrendered as group relief when all the profits of the accounting period are covered by charges paid in the accounting period. For this purpose, the profits of the accounting period should not be reduced by any reliefs for losses and other allowances of the same or any other accounting period (except current accounting period management expenses). No account is taken of deductions, losses or other allowances brought forward, for example, under ICTA88/S393 (1)). See the Example at CTM80450.