CTM80255 - Groups: group relief: non coinciding accounting periods or group relationships - example
CTA10/Ss138-142
This example shows the operation of CTA10/Ss138 to 142 (CTM80210 and CTM80215).
| Company | Accounting period | Profit or Loss |
|---|---|---|
| A | 12 months to 31 December 2011 | Profit £72,000 |
| B | 12 months to 31 December 2011 | Loss (£100,000) |
| C | 6 months to 30 June 2011 | Profit £5,000 |
| D | 12 months to 30 September 2011 | Loss (£120,000) |
| E | 12 months to 31 May 2012 | Profit £160,000 |
A, B, C, and D are in a group relationship throughout. E joined the group on 1 June 2011.
C claims group relief from D.
A claims from D and then from B.
E claims from D and then from B.
C바카라 사이트™s claim from D (no prior surrenders or claims)
The overlapping period (CTM80225) is the six months ended 30 June 2011.
D바카라 사이트™s 바카라 사이트˜unused part of the surrenderable amounts바카라 사이트™ is the same as its 바카라 사이트˜surrenderable amount for the overlapping period바카라 사이트™ (CTM80230). This is because there have been no prior surrenders of D바카라 사이트™s losses. It is:
6/12 x £120,00 = £60,000
C바카라 사이트™s 바카라 사이트˜unrelieved part of the claimant company바카라 사이트™s available total profits is also the same as its 바카라 사이트˜available total profits for the overlapping period바카라 사이트™ (CTM80235). This is because it has made no prior claims. It is:
6/6 x £5,000 = £5,000
The amount that can be surrendered/claimed is the smaller of these (CTM80215). It is £5,000.
A바카라 사이트™s claim from D (prior surrender)
The overlapping period is nine months ended 30 September 2011.
D바카라 사이트™s 바카라 사이트˜surrenderable amount for the overlapping period바카라 사이트™ is:
9/12 x £120,000 = £90,000
D바카라 사이트™s 바카라 사이트˜unused part of the surrenderable amount바카라 사이트™ is this amount less the 바카라 사이트˜amount of prior surrenders for the overlapping period바카라 사이트™.
Following the steps in CTM80240:
Step 1
C바카라 사이트™s prior claim from D involves part of D바카라 사이트™s surrenderable amount for accounting period ended 30 September 2011
Step 2
C바카라 사이트™s prior claim of £5,000 was for the overlapping period of six months ended 30 June 2011.
The common period of the overlapping periods in C바카라 사이트™s claim and A바카라 사이트™s claim is six months ended 30 June 2011.
The whole six month overlapping period for C바카라 사이트™s prior claim is included in the common period, so the whole of the £5,000 is apportioned to that common period.
Step 3
The total, £5,000, is the 바카라 사이트˜amount of any prior surrenders for the overlapping period바카라 사이트™.
So D바카라 사이트™s 바카라 사이트˜unused part of the surrenderable amounts바카라 사이트™ is £90,000 less £5,000 which is £85,000.
A바카라 사이트™s 바카라 사이트˜unrelieved part of the claimant company바카라 사이트™s available total profits바카라 사이트™ is the same as its 바카라 사이트˜available total profits for the overlapping period바카라 사이트™. This is because it has made no prior claims. It is:
9/12 x £72,000 = £54,000
The amount that can be surrendered/claimed is the smaller of £85,000 and £54,000, which is £54,000.
A바카라 사이트™s claim from B (prior claim)
The overlapping period is 12 months ended 31 December 2011.
B바카라 사이트™s 바카라 사이트˜unused part of the surrenderable amounts바카라 사이트™ is the same as its 바카라 사이트˜surrenderable amount for the overlapping period바카라 사이트™. This is because there have been no prior surrenders of B바카라 사이트™s losses. It is:
12/12 x £100,000 = £100,000
A바카라 사이트™s 바카라 사이트˜available total profits for the overlapping period바카라 사이트™ are £72,000. The 바카라 사이트˜unrelieved part of the claimant company바카라 사이트™s available total profits바카라 사이트™ is this amount less 바카라 사이트˜the amount of previously claimed group relief for the overlapping period바카라 사이트™.
Following the steps in CTM80245:
Step 1
A has claimed from D for the accounting period ended 31 December 2011.
Step 2
A바카라 사이트™s prior claim from D of £54,000, was for the overlapping period of nine months ended 30 September 2011.
The common period of the overlapping periods for the claim from D and the claim from B is the nine months ended 30 September 2011.
The whole nine month overlapping period for the prior claim is included in the common period, so the whole of the £54,000 group relief given is apportioned to that common period.
Step 3
The total, £54,000, is the 바카라 사이트˜amount of previously claimed group relief for the overlapping period바카라 사이트™.
So A바카라 사이트™s 바카라 사이트˜unrelieved part of the claimant company바카라 사이트™s available total profits바카라 사이트™ is £72,000 less £54,000 which is £18,000.
The amount that can be surrendered/claimed is the smaller of £100,000 and £18,000, which is £18,000.
E바카라 사이트™s claim from D (prior surrenders)
The overlapping period is four months ended 30 September 2011.
D바카라 사이트™s 바카라 사이트˜surrenderable amount for the overlapping period바카라 사이트™ is:
4/12 x £120,000 = £40,000
D바카라 사이트™s 바카라 사이트˜unused part of the surrenderable amounts바카라 사이트™ is this amount less the 바카라 사이트˜amount of prior surrenders for the overlapping period바카라 사이트™.
Following the steps in CTM80240:
Step 1
C바카라 사이트™s claim from D involves part of D바카라 사이트™s surrenderable amount for accounting period ended 30 September 2011.
A바카라 사이트™s claim from D involves part of D바카라 사이트™s surrenderable amount for accounting period ended 30 September 2011.
Step 2
C바카라 사이트™s prior claim of £5,000, was for the overlapping period of six months ended 30 June 2011.
The common period of the overlapping periods in C바카라 사이트™s claim and E바카라 사이트™s claim is the one month ended 30 June 2011.
The £5,000 is apportioned to that common period:
1/6 x £5,000 = £833
A바카라 사이트™s prior claim of £54,000, was for the overlapping period of nine months ended 30 September 2011.
The common period of the overlapping periods in A바카라 사이트™s claim and E바카라 사이트™s claim is four months ended 30 September 2011.
The £54,000 is apportioned to that common period:
4/9 x £54,000 = £24,000
Step 3
The total £24,833 (£833 plus £24,000) is the 바카라 사이트˜amount of prior surrenders for the overlapping period바카라 사이트™.
So D바카라 사이트™s 바카라 사이트˜unused part of the surrenderable amounts바카라 사이트™ is £40,000 less £24,833 which is £15,167.
E바카라 사이트™s 바카라 사이트˜unrelieved part of the claimant company바카라 사이트™s available total profits바카라 사이트™ is the same as its 바카라 사이트˜available total profits for the overlapping period바카라 사이트™. This is because it has made no prior claims. It is:
4/12 x £160,000 = £53,333
The amount that can be surrendered/claimed is the smaller of these: £15,167.
E바카라 사이트™s claim from B (prior surrender and claim)
The overlapping period is seven months ended 31 December 2011.
B바카라 사이트™s 바카라 사이트˜surrenderable amount for the overlapping period바카라 사이트™ is
7/12 x £100,000 = £58,333
B바카라 사이트™s 바카라 사이트˜unused part of the surrenderable amounts바카라 사이트™ is this amount less the 바카라 사이트˜amount of prior surrenders for the overlapping period바카라 사이트™.
Following the steps in CTM80240:
Step 1
A바카라 사이트™s claim from B involves part of B바카라 사이트™s surrenderable amount for accounting period ended 31 December 2011.
Step 2
A바카라 사이트™s prior claim from B of £18,000, was for the overlapping period of 12 months ended 31 December 2011.
The common period of the overlapping periods in A바카라 사이트™s claim and E바카라 사이트™s claim is seven months ended 31 December 2011.
The £18,000 is apportioned to that common period:
7/12 x £18,000 = £10,500
Step 3
£10,500 is the 바카라 사이트˜amount of prior surrenders for the overlapping period바카라 사이트™.
So B바카라 사이트™s 바카라 사이트˜unused part of the surrenderable amounts바카라 사이트™ is £58,333 less £10,500 which is £47,833.
E바카라 사이트™s available total profits for the 12 month accounting period to 31 March 2012 are £160,000. Its available total profits for the overlapping period are:
7/12 x £160,000 = £93,333
The 바카라 사이트˜unrelieved part of the claimant company바카라 사이트™s available total profits바카라 사이트™ is this amount less 바카라 사이트˜the amount of previously claimed group relief for the overlapping period바카라 사이트™.
Following the steps in CTM80245:
Step 1
E has claimed from D for the accounting period ended 31 March 2012.
Step 2
E바카라 사이트™s prior claim from D of £15,167, was for the overlapping period of four months ended 30 September 2011.
The common period of the overlapping periods in the claim from D and the claim from B is also four months ended 30 September 2011.
The whole four month overlapping period for the prior claim is included in the common period, so the whole of the £15,167 is apportioned to that common period.
Step 3
The total, £15,167, is the 바카라 사이트˜amount of previously claimed group relief for the overlapping period바카라 사이트™.
So E바카라 사이트™s 바카라 사이트˜unrelieved part of the claimant company바카라 사이트™s available total profits바카라 사이트™ is £93,333 less £15,167 which is £78,166.
The amount that can be surrendered/claimed is the smaller of £47,833 and £78,166, which is £47,833.