CTM05150 - Corporation tax: restriction on relief for carried-forward losses: deductions allowance for a company in a group for part of an accounting period
CTA10/S269ZR
If a company is a member of a group (CTM05160) for part of an accounting period, it is entitled to:
- an appropriate part of the non-group deductions allowance (CTM05130) for the period when it was not a member of the group, and
- any group deductions allowance (CTM05140) allocated to it for the remainder of the accounting period.
However, the company바카라 사이트™s total deductions allowance cannot be greater than £5 million per 12 month accounting period (CTA10/S269ZR (2)). This amount is reduced proportionately if the accounting period is less than 12 months (CTA10/S269ZR (4)(b)).
The company should specify the amount of its deductions allowance in its tax return (CTA10/S269ZZ).
Appropriate part of the non-group deductions allowance
An appropriate part of the non-group deductions allowance for the period is calculated using the formula DNG/DAC x £5,000,000, where
- DNG is the number of days in the period on which the company is not a member of a group, and
- DAC is the total number of days in the period.
The appropriate part of the non-group deductions allowance is reduced proportionately if the accounting period is less than 12 months (CTA10/S269ZR (4)(a)).
Part of the group deductions allowance allocated
Where a company has been in a group for part of its accounting period, it may be allocated part of that group바카라 사이트™s deductions allowance on the group allowance allocation statement (CTM05190, CTM05200).
However, there is a limit on the amount of deductions allowance the company can be allocated if it was not in the group for the whole of the nominated company바카라 사이트™s accounting period. This is discussed at CTM05210.
If the company is not allocated any of the group바카라 사이트™s deductions allowance, then the company바카라 사이트™s deductions allowance will be limited to the appropriate part of its non-group deductions allowance only.