Groups: group relief: Non coinciding accounting periods or group relationships - unrelieved part of claimant company’s available total profits
CTA10/S140 defines “unrelieved part of the claimant company’s available total profits” for the purpose of CTA10/S138 (CTM80210).
In particular, the rules cater for the cases where:
- the surrendering company and the claimant company have different accounting periods or are not in a group relationship for the whole periods; or
- the claimant has made multiple claims for group relief.
- CTA10/S140(1) defines the “unrelieved part of the claimant company’s available total profits” as being equal to:
- the company’s available total profits for the overlapping period, less,
- the amount of previously claimed group relief for the overlapping period.
The meaning of “overlapping period” is given by CTA10/S142 (CTM80225).
Calculate the company’s available total profits for the overlapping period:
- establish the company’s available total profits for its accounting period (CTM80400). Where the claimant company is not resident in the UK but is claiming group relief against profits of a permanent establishment in the UK (CTM80310), the total profits for this purpose are those of the permanent establishment within the charge to CT.
- time-apportion those available total profits to the overlapping period, by reference to the proportion of the claim period included in the overlapping period.
Although the usual method of apportionment is time apportionment ,under CTA10/S141(3), (CTM80265) some other just and reasonable apportionment may be used if time apportionment would be unjust or unreasonable, see CTM80260.
Once you have calculated this amount you will need to reduce it by any previously claimed group relief for the overlapping period (CTM80245).