Corporation Tax Act 2010

139Unused part of the surrenderable amountsU.K.
This section has no associated Explanatory Notes

(1)The unused part of the surrenderable amounts is the amount equal to—

(a)the surrenderable amount for the overlapping period (see subsection (2)), less

(b)the amount of prior surrenders for that period (see subsections (3) to (5)).

(2)To determine the surrenderable amount for the overlapping period—

(a)take the proportion of the surrender period included in the overlapping period, and

(b)apply that proportion to the surrenderable amounts for the surrender period.

The surrenderable amount for the overlapping period is the amount given as a result of paragraph (b).

(3)To determine the amount of prior surrenders for the overlapping period—

(a)identify any prior claims for the purposes of this section (see subsection (4)), and

(b)take the steps set out in subsection (5) in relation to each such claim.

The amount of prior surrenders for the overlapping period is the total of the previously used amounts given at Step 3 in subsection (5) for all the prior claims.

(4)A claim is a prior claim for the purposes of this section if—

(a)it is a claim by any company for group relief in respect of the whole or a part of the amounts that, in relation to the current claim, are the surrendering company's surrenderable amounts for the surrender period,

(b)it is made before the current claim, and

(c)it has not been withdrawn.

(5)These are the steps referred to in subsection (3)(b) to be taken in relation to each prior claim.

  • Step 1

    Identify the overlapping period for the prior claim.

  • Step 2

    Identify any period that is common to the overlapping period for the current claim and the overlapping period for the prior claim. If there is a common period, go to Step 3. If there is no common period, there is no previously used amount in relation to the prior claim (and ignore Step 3).

  • Step 3

    Determine the previously used amount of group relief in relation to the prior claim (see subsection (6)).

(6)To determine the previously used amount of group relief in relation to a prior claim—

(a)take the proportion of the overlapping period for the prior claim that is included in the common period identified at Step 2 in relation to that claim, and

(b)apply that proportion to the amount of group relief given on the prior claim.

The previously used amount of group relief in relation to the prior claim is the amount given as a result of paragraph (b).

(7)For the meaning of “the overlapping period” see section 142.