PART X LOSS RELIEF AND GROUP RELIEF

CHAPTER IV GROUP RELIEF

407 Relationship between group relief and other relief.
(1) Group 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) as reduced by any other relief from tax (including relief in respect of charges on income under section 338(1) of this Act or by virtue of section 83 of, or paragraph 4 of Schedule 11 to, the Finance Act 1996 (non-trading deficits)) determined on the assumption that the company makes all relevant claims under section 393A(1) of this Act and section 260(3) of the Capital Allowances Act(set-off of capital allowances against total profits).
Source—1970 s.260(1), (2)
Words in s. 407(1)(b) inserted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 22(1) (with Sch. 15)
Words in s. 407(1)(b) substituted by Finance Act 1991 (c. 31, SIF 63:1), s. 73(3)-(5), Sch. 15 para. 14(1)
Words in s. 407(1)(b) substituted (with effect in accordance with s. 579(1) of the amending Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 37(1) (with Sch. 3)
Source—1970 s.260(1)
(2) For the purposes of this section “relief derived from a subsequent accounting period” means—
(a) relief under section 393A(1)(b) in respect of a loss incurred in an accounting period after the accounting period the profits of which are being computed; and
Source—1970 s.260(3)(a), (d)
Words in s. 407(2)(a) substituted by Finance Act 1991 (c. 31, SIF 63:1), s. 73(3)-(5), Sch. 15 para. 14(2)
(b) relief under section 260(3) of the Capital Allowances 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; and
Source—1970 s.260(3)(b)
Words in s. 407(2)(b) substituted (with effect in accordance with s. 579(1) of the amending Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 37(2) (with Sch. 3)
Word in s. 407(2) inserted (27.7.1993 ) by 1993 c. 34, s. 170, Sch. 18 para.4
(c) relief in pursuance of a claim under section 83(2) of, or paragraph 4 of Schedule 11 to, the Finance Act 1996 (non-trading deficits) in respect of any deficit for a deficit period after the accounting period the profits of which are being computed.
S. 407(2)(c) and words inserted (27.7.1993) by 1993 c. 34, s. 170, Sch. 18 para.4
S. 407(2)(c) substituted for para. (c) and words following it (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 22(2) (with Sch. 15)
(3) The 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.
Source—1970 s.260(4)
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).
Pt. 10 Ch. 4 modified (27.7.1999) by Commonwealth Development Corporation Act 1999 (c. 20), Sch. 3 paras. 1, 5(1)
Pt. 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.
Pt. 10 Ch. 4 modified (19.7.2006) by Finance Act 2006 (c. 25), s. 136(1)(2)(c)
Pt. 10 Ch. 4 modified (12.12.2006 with effect in accordance with reg. 1(2) of the modifying S.I.) by The Taxation of Securitisation Companies Regulations 2006 (S.I. 2006/3296), regs. 1(1), 17
Pt. 10 Ch. 4 modified (1.4.2009 with effect in accordance with s. 1329(1) of the modifying Act) by Corporation Tax Act 2009 (c. 4), s. 39(3) (with Sch. 2 Pts. 1, 2)