PART X LOSS RELIEF AND GROUP RELIEF

C1C2C3C4C5C6CHAPTER IV GROUP RELIEF

Annotations:
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).

C3

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.

C5

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

C6

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)

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) F5of 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 F1393A(1) of this Act and F7section 260(3) of the Capital Allowances 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 F2393A(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 F8section 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; F3and

F4F6c

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.

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.