Section 269ZR | Deductions allowance for company in a group ^F1

From legislation.gov.uk

(1)This section makes provision as to the deductions allowance of a company for an accounting period where, at any time in the period—^F1

(a)the company is a member of a group, and^F1

(b)one or more other companies within the charge to corporation tax are members of that group.^F1

(2)The company's deductions allowance for the accounting period is the sum of—^F1

(a)any amounts of group deductions allowance allocated to the company for the period in accordance with sections 269ZS to 269ZV, and^F1

(b)the appropriate amount of non-group deductions allowance of the company for the period,^F1

up to a limit of £5,000,000.

(3)The “appropriate amount of non-group deductions allowance” of the company, for the accounting period, is—^F1

Formula

\frac{DNG}{DAC} \times £ 5,000,000

where—

“DNG” is the number of days in the period on which the company is not a member of a group that has another member that is a company within the charge to corporation tax, and

“DAC” is the total number of days in the period.

(4)If the accounting period is less than 12 months—^F1

(a)the appropriate amount of non-group deductions allowance, and^F1

(b)the limit in subsection (2),^F1

are proportionally reduced.

(5)See section 269ZYA for further provision about the deductions allowance for a company without a source of chargeable income which is a member of a group.^F1F2