PART X LOSS RELIEF AND GROUP RELIEF

CHAPTER IV GROUP RELIEF

407 Relationship between group relief and other relief.

(1)

M1Group relief for an accounting period shall be allowed as a deduction against the claimant company’s total profits for the period—

(a)

before reduction by any relief derived from a subsequent accounting period, but

(b)

M2as reduced by any other relief from tax (including relief in respect of charges on income under section 338(1)) determined on the assumption that the company makes all relevant claims under section F1393A(1)of this Act and F2section 145(3) of the 1990 Act (set-off of capital allowances against total profits).

(2)

For the purposes of this section “relief derived from a subsequent accounting period” means—

(a)

M3relief under section F33 93A(1)(b)in respect of a loss incurred in an accounting period after the accounting period the profits of which are being computed; and

(b)

M4relief under F2section 145(3) of the 1990 Act in respect of capital allowances falling to be made for an accounting period after the accounting period the profits of which are being computed.

(3)

M5The reductions to be made in total profits of an accounting period against which any relief derived from a subsequent accounting period is to be set off shall include any group relief for that first-mentioned accounting period.