½Û×ÓÊÓƵ

Maximum claim for group relief

The maximum group relief for current year losses is for the lower of:

1. Ìý

   •ÌýÌýÌýÌý the available loss of the surrendering company, and

2. Ìý

   •ÌýÌýÌýÌý the total profits of the claimant company (or companies)

This is subject to the restriction that applies where the claimant company and the surrendering company accounting periods do not coincide (D2.216).

The claimant company must use the losses in its current accounting period — any losses claimed under group relief cannot be carried back, carried forward or given to another group member.

Example 1

A Ltd and B Ltd are group companies with the following results for the year to 31 December.

It is possible to surrender the loss of £60,000 from B Ltd to A Ltd reducing A Ltd's taxable profit and its corporation tax liability.

Example 2

A Ltd and B Ltd are group companies with the following results for the year to 31 December.

The