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HMRC internal manual

Company Taxation Manual

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HM Revenue & Customs
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Groups: group relief: non coinciding accounting periods or group relationships - multiple claims

CTA10/S138

The following guidance sets out how CTA10/S138 operates with Ss139 and 140 to limit group relief in various circumstances.

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 for calculating the amount of relief.  The basic approach is to take each claim in turn, establish the “overlapping period” and then:

Step 1 –calculate the surrenderable amount

CTA10/S139(1) requires you to calculate the “unused part of the surrenderable amounts” by:

  • working out the surrenderable amount for the overlapping period (CTM80230),
  • reducing this amount by the amount of any prior surrenders attributable to the overlapping period (CTM80240).

Step 2 –calculate the claimable amount

CTA10/S140(1) requires you to calculate the “unrelieved part of the claimant company’s available total profits” by:

  • working out the claimant company’s available total profits for the overlapping period (CTM80235), and,

 

  • reducing this amount by the amount of any previously claimed group relief attributable to the overlapping period (CTM80245).

The amount of the group relief claim must not exceed the smaller of the results of Step 1 and Step 2.the unused part of the surrenderable amounts, and

  • the unrelieved part of the claimant company’s total profits.

There is an example at CTM80255.