PART XU.K. LOSS RELIEF AND GROUP RELIEF

CHAPTER IVU.K. GROUP RELIEF

Modifications etc. (not altering text)

C1 See—1988 s.434A—limitations on group relief for life assurance company.1989 s.102—surrender of company tax refund etc. within group (from a day to be appointed not earlier than 31March 1992).

C3Pt. 10 Ch. 4: The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), reg. 35 to be construed as one with this Chapter (6.4.2006) by virtue of regs. 1, 35(2) of that affecting S.I.

[F1403ZA Amounts eligible for group relief: trading losses.U.K.

(1)For the purposes of section 403 a trading loss means a loss incurred by the surrendering company in the surrender period in carrying on a trade, computed as for the purposes of section 393A(1).

(2)That section does not apply to a trading loss which would be excluded from section 393A(1) by—

(a)section 393A(3) (foreign trades and certain trades not carried on with a view to gain), or

(b)section 397 (farming and market gardening: restriction on loss relief).

(3)Where a company owned by a consortium—

(a)has in any relevant accounting period incurred a trading loss, and

(b)has profits (of whatever description) of that accounting period against which that loss could be set off under section 393A(1),

the amount of the loss available to a member of the consortium on a consortium claim shall be determined on the assumption that the company has made a claim under section 393A(1) requiring the loss to be so set off.

(4)Where the company mentioned in subsection (3) is a group/consortium company, the amount of the loss available under that subsection shall be determined before any reduction is made under section 405(1) to (3).]

Textual Amendments

F1Ss. 403-403ZE substituted for s. 403 (with effect in accordance with s. 38(2)(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 5 para. 29 (with Sch. 5 para. 73)