Group relief

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  • Avatar of polldoll
    polldoll
    Participant
    • Topics: 10
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    If A controls B and C, can losses of B be relieved against profits of C or do they have to be relieved against profits of A?
    I am looking at BPP’s answer to Q. 46 part (b) of the revision kit where, in 2010/11, A pays CT at main rate and C at marginal rate. I thought B’s loss should be relieved against C to bring down to lower threshold, then remainder relieved against A.
    Thanks for your help.


    Avatar of Tax Tutor
    Tax Tutor
    Keymaster
    • Topics: 1
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    In year ended 31/3/10 there are only 3 associated companies so the lower limit is £100,000 and C ltd is paying at 21% not 29.75%. In year ended 31/3/11 when Delicious Ltd is acquired there are then 4 associated companies so the lower limit is then £75,000
    Hope this helps


    Avatar of polldoll
    polldoll
    Participant
    • Topics: 10
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    Thanks, makes much more sense now!

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