Group relief

The following can be group relieved:

1. UK trading losses
2. excess capital allowances
3. non-trading loan relationship deficits
4. charitable donations relief (formerly, charges on income)
5. losses from a UK property business
6. management expenses and
7. non-trading losses on intangible fixed asset

8. UK trading losses carried forward

9. non-trading loan relationship deficits carried forward

10. losses carried forward from a UK property business

11. management expenses carried forward

12. non-trading losses on intangible fixed asset carried forward.

How much can be claimed/ surrendered?

The amount that can be claimed/ surrendered between a pair of companies is the lower of the:

• surrenderable loss* for the accounting period, and
• profit* for the accounting period.

* as reduced by any amounts already surrendered to or claimed by other group companies.

Note: Where the accounting periods of the pair of group companies concerned are not the same, the surrenderable losses and the profits are restricted to the amount which corresponds to the overlapping period of those accounting periods.

Order of set off

A claimant company must set off amounts available for relief in the following order:

1. own reliefs for the accounting period
2. group relief; and
3. losses brought back from any subsequent accounting periods.

Procedures

Claims

A claim must be made in the company return and specify:

• Amount of relief
• Details of the surrendering company

Consent

Claims cannot be amended but can be withdrawn and replaced by another claim.

A claims for group relief requires the consent of the company surrendering the relief.

• Consent must be in writing at or before the corresponding claim is made

A claims for group relief must be accompanied by a copy of the consent.

Consent must include:

• the name of the surrendering company and its tax district reference (if within the charge to UK tax)
• the name of the claimant company and its tax district reference;
• the amount of relief being surrendered
• the accounting period of the surrendering company to which the surrender relates, if different from the accounting period of the claimant company.

You may make a group relief claim if:

• the company has made a profit for the period
• another group member has made a loss which is available to be surrendered

From Group relief, at Select surrender or claim, select Claim. This will open Surrendering companies. There is a grid for Surrendering companies (losses this period) and a separate grid for Surrendering companies (losses c/f).

Select Add to create a row for each surrendering company in the appropriate grid.

Enter for each surrendering company its name, unique tax reference and amount of loss to be surrendered.

If the accounting period of the surrendering and claimant companies are different, then enter the accounting period start and end dates for the surrendering company in the fields provided. If the accounting periods of the two companies are identical, then leave these boxes blank.

To delete a row, select the white cross next to it.

Surrender of loss from a non-resident company

Select if relevant:

• losses of trade carried on in the UK through a permanent establishment of a non-resident company; or
• losses of a non-resident company other than one listed above,

This will populate boxes C15 and C20 respectively on page 2 of the CT600C Version 3 or boxes C1B and C1C respectively on page 1 of the CT600C Version 2.

Consent to claim

Indicate whether copy notices of the consent of the surrendering company are attached, or whether these are unnecessary because simplified arrangements are in place. See Online filing for details of attaching documents to the Company Tax Return submission.

From Group Relief, at Select surrender or claim, select Surrender. This will open Claimant companies. There is a grid for Claimant companies (losses this period) and a separate grid for Claimant companies (losses c/f).

Select Add to create a row for each claimant company in the appropriate grid.

Enter for each company its name, unique tax reference and amount of loss to be allocated to that company.

If the accounting period of the surrendering and claimant companies are different, then enter the accounting period start and end dates for the claimant company in the fields provided. If the accounting periods of the two companies are identical, then leave these boxes blank.

To delete a row, select the white cross next to it.

Consent to surrender

Select whether consent notices are attached, to be completed or are not required as simplified arrangements are in place. See Online filing for details of attaching documents to the Company Tax Return submission.

Total losses surrendered this period

The Total of Claimant companies (losses this period) must equal Total losses surrendered this period by loss type.

The Total of Claimant companies (losses c/f) must equal Total losses c/f surrendered.

Total losses surrendered this period by loss type is the total amount of losses in each of the Losses this period tabs of the company’s various loss-making activities which have been identified as Group relief surrendered. This figure cannot be amended from Group relief. The figure can be amended by altering Group relief surrendered on the Losses this period tab of the relevant activity.

Total losses c/f surrendered is the total amount of losses in each of the Losses b/f tabs of the company’s various loss-making activities which have been identified as Group relief surrendered. This figure cannot be amended from Group relief. The figure can be amended by altering Group relief surrendered on the Losses b/f tab of the relevant activity

Click on the Total losses surrendered by loss type Help icon or figure, to open Maximum amount for surrender. This provides details of the activities from which the group relief losses have been allocated and the amounts.

The Excess relevant amounts over profit-related threshold calculation section shows if and how the losses this period that are not UK trading losses may group relief surrendered.