Finance (No. 2) Act 1997 (c. 58)

SCHEDULES

SCHEDULE 7 U.K. Restrictions on group relief

Modifications etc. (not altering text)

C1 Sch. 7 amended ( retrospective to 31.7.1997) by 1998 c. 36, s. 81(5)

Consequential amendmentsF1 F1 U.K.

Textual Amendments

F1 Sch. 7 para. 3 repealed (31.7.1998 with effect as mentioned in Sch. 27 Pt. III(4) Note of the amending Act) by 1998 c. 36, ss. 38(2)(3), 165, Sch. 27 Pt. III(4) Note

3 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 U.K. In section 405(4) (claims relating to losses of members of both groups and consortia), for the words from “a fraction” to “403(9)(b))” there shall be substituted “ which an amount may by virtue of that claim be set off by way of group relief ”.

5 (1) In section 406 (consortium claims by or in relation to group members and consortium companies), in each of subsections (2) and (6) (which refer to the fraction in section 403(9))— U.K.

(a) for “appropriate under section 403(9)” there shall be substituted “ the relevant fraction for the purposes of section 403C ”; and

(b) for “that which would be appropriate” there shall be substituted “ it would be ”.

(2) For subsection (3) of that section there shall be substituted the following subsection—

“(3) Sections 403A to 403C shall have effect in relation to a consortium claim made by a group member by virtue of subsection (2) above as if any time when the claimant company was not a member of the group—

(a) were not comprised in the period which is the overlapping period in the case of that claim; and

(b) were to be treated instead as if it constituted a part of the claim period which did not coincide with any part of the accounting period of the surrendering company to which the claim relates.”

(3) For subsection (7) of that section there shall be substituted the following subsection—

“(7) Sections 403A to 403C shall have effect in relation to a consortium claim made by a consortium company by virtue of subsection (5) above as if any time when the surrendering company was not a member of the group—

(a) were not comprised in the period which is the overlapping period in the case of that claim; and

(b) were to be treated instead as if it constituted a part of the claim period that did not coincide with any part of the accounting period of the surrendering company to which the claim relates.”

(4) In subsection (8) of that section, for the words from “that fraction” to “409(3)(b)” there shall be substituted “ the maximum amount of relief available to the claimant company ”.

6 U.K. Sections 408, 409 and 411(2) to (9) (which limit group relief where the accounting periods of the claimant company and the surrendering company do not coincide and where companies join and leave groups and make other provision for excluding double relief) shall cease to have effect.

7 U.K. In section 413 (interpretation), after subsection (2) there shall be inserted the following subsection—

“(2A) For the purposes of group relief an accounting period of the claimant company which falls wholly or partly within an accounting period of the surrendering company shall be taken to correspond to that accounting period of the surrendering company.”

8 U.K. In section 179(4) of the M1 Taxation of Chargeable Gains Act 1992 (which specifies when a gain or loss on de-grouping is deemed to accrue), for the words after paragraph (b) there shall be substituted—

“and sections 403A and 403B of the Taxes Act (limits on group relief) shall have effect accordingly as if the actual circumstances were as they are treated as having been.”

Marginal Citations

M1 1992 c. 12.