CTM80140 - Groups: group relief: meaning of excess management expenses

CTA10/S99(1)(f), CTA10/S103, CTA09/S1219, CTA10/S105

Excess management expenses can be surrendered and claimed as group relief (CTM80105).

This does not apply where the surrendering company carries on the business of life assurance (CTA09/S1223A).

Management expenses means expenses that are deductible for the surrender period under CTA09/S1219 (see CTM08150).

Management expenses are a 바카라 사이트˜relevant amount바카라 사이트™ for the group relief provisions, so can only be surrendered to the extent that the total of the surrendering company바카라 사이트™s relevant amounts exceeds the 바카라 사이트˜profit-related threshold바카라 사이트™ (or 바카라 사이트˜gross profit바카라 사이트™ in surrendering periods ended before 20 March 2013; see CTA10/S105, CTM80142). This is the case regardless of whether the surrendering company uses any of the relevant amounts against its own profits.

The calculation will need to take into account the prescribed order of surrender of relevant amounts (see CTM80143).

Excess management expenses does not include:

  • management expenses brought forward from another accounting period under CTA09/S1223, or
  • brought forward losses of a company with investment business, that ceases to carry on UK property business, that are treated as management expenses of the current period under CTA10/S63.

See the example at CTM80445 on surrender of excess management expenses.