- This topic has 1 reply, 2 voices, and was last updated 6 years ago by
.
- Posts
The answer
the Group relief to B Ltd will be restricted to 6/12 months of Z Ltd’s trading loss for year ended 31 march 2017.Does it mean any 6 months of trading loss arise during the accounting period from 1 april 2016 – 31 march 2017? ( assume that Z LTd’s accounting period starts from1 april and ended 31 march)
Thank you in advance for your explanation.
Group relief is only available for a loss to be set off against the profits of a corresponding accounting period. Thus if B Ltd started to trade on 1 October 2016 then its 6 month period corresponds with only 6 months of Z Ltd.’s 12 month period of loss (from 1 October 2016 to 31 March 2017). When time apportioning either a period of loss or profit it is deemed to accrue evenly over that period
- You must be logged in to reply to this topic.