CTM80260 - Groups: group relief: non coinciding accounting periods or group relationships 바카라 사이트� time apportionment is not the only permitted method

CTA10/S141(3)

S141(3) says that, for the purposes of calculating the 바카라 사이트渦nused part of the surrenderable amounts바카라 사이트� or the 바카라 사이트渦nrelieved part of the claimant company바카라 사이트檚 available total profits바카라 사이트� (CTM80210 and CTM80215), where a time-apportionment would 바카라 사이트減roduce a result that is unjust or unreasonable바카라 사이트�, 바카라 사이트渢he proportion is to be modified so far as necessary to produce a result that is just and reasonable바카라 사이트�. There is no avoidance motive test, but the alternative 바카라 사이트榡ust and reasonable바카라 사이트� basis only applies where time-apportionment produces a result that is 바카라 사이트榰nreasonable or unjust바카라 사이트�. You should apply the alternative basis of apportionment in any case where:

  • the alternative basis is likely to give significantly different results, and
  • the amount of tax at stake is worthwhile.

The following are examples of when you should consider applying the alternative basis:

  • There has been a significant change in the pattern of the company바카라 사이트檚 results compared with previous periods. This applies particularly where there have been substantial disposals (of either circulating capital assets, or fixed assets attracting a balancing charge or chargeable gains) which leave the company with a lower level of fixed assets or stock or both at the balance sheet date than in previous years.

or

  • A particular event, such as the acquisition of a major asset on which there are first year or other enhanced capital allowances, or a financial transaction in respect of which there is a loan relationship deficit, falls within or without the period to which profits or losses are to be apportioned.

or

  • The company바카라 사이트檚 business is one in which disposals are otherwise large and 바카라 사이트榣umpy바카라 사이트� (such as property developers, for circulating capital assets, and shipping companies for fixed assets attracting capital gains and balancing charges).

or

  • The company바카라 사이트檚 business is both substantial and seasonal.

or

  • There is evidence of manipulation of the timing of relevant events within the accounting period.

See CTM80265 about apportionment based on management accounts and CTM80270 about apportioned amounts not exceeding the total loss or other surrenderable amount.