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.

C5Pt. 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

C6Pt. 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.U.K.

(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) [F1of this Act or by virtue of [F2section 388, 389 or 391 or Chapter 16 of Part 5 of CTA 2009] (non-trading deficits)]) determined on the assumption that the company makes all relevant claims under section [F3393A(1)] of this Act and [F4section 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 [F5393A(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 [F6section 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; [F7and]

[F8[F9(c)relief in pursuance of a claim under [F10section 389 or 459 of CTA 2009] (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.

Textual Amendments

F1Words 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)

F2Words in s. 407(1)(b) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 123(a) (with Sch. 2 Pts. 1, 2)

F4Words 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)

F6Words 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)

F7Word in s. 407(2) inserted (27.7.1993 ) by 1993 c. 34, s. 170, Sch. 18 para.4

F8S. 407(2)(c) and words inserted (27.7.1993) by 1993 c. 34, s. 170, Sch. 18 para.4

F9S. 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)

F10Words in s. 407(2)(c) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 123(b) (with Sch. 2 Pts. 1, 2)

Marginal Citations

M1Source—1970 s.260(1)

M2Source—1970 s.260(1), (2)

M3Source—1970 s.260(3)(a), (d)

M4Source—1970 s.260(3)(b)

M5Source—1970 s.260(4)