CTM80245 | Groups: group relief: non coinciding accounting periods or group relationships - amount of any previous claims attributable thereto

CTA10/S140

• S140(1) defines the “unrelieved part of the claimant company’s available total profits” as being equal to:

• the company’s available total profits for the overlapping period (CTM80235), less,

• the amount of previously claimed group relief for the overlapping period.

The meaning of “overlapping period” is given by CTA10/S142 (CTM80225).

To calculate the ‘amount of previously claimed group relief for the overlapping period’ for any claim (the ‘current claim’), follow the three steps outlined at CTA10/S140(3)-(6).

Step 1

• Identify each earlier claim (CTM80220) made by the company making the current claim for the same accounting period as the current claim

• that has not been withdrawn.

Step 2

For each such earlier claim determine the previously claimed amount of group relief in relation to the prior claim:

• identify the amount of group relief given for the prior claim and the overlapping period (CTM80225) for that claim,

• determine the common period, if any, shared by the overlapping period for the prior claim and the overlapping period for the current claim,

• if there is no common period, there is no previously claimed amount in relation to the prior claim;

• if there is a common period time-apportion the amount of group relief given under the prior claim, by reference to the proportion of the overlapping period for the prior claim that is included in the common period. If time-apportionment gives an unjust or unreasonable result, some other basis may be used (CTM80260).

Step 3

• Add up all the apportioned amounts from Step 2. The result is the ‘amount of previously claimed group relief for the overlapping period’ for the current claim.

There is an example at CTM80255.