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Greetings sir,
In 22.3 Example 4, you gave a company Z Ltd that made a profit of £50,000 and started trading that year only 1 Jan 21 – 31 Mar 21, owned by Beyonce Ltd. And you asked to calculate the maximum group relief.But earlier in your notes you had also said:
“A company is a related 51% group company if the parent company owns directly or indirectly more than 50% of the share capital of the subsidiary company at the end of the previous accounting period:”
However Z Ltd started only trading this very year. So how can it be treated as a group member to take part in these facilities ?
So is this a mistake that needs updating, or something I did not understand?
These are 2 separate points – the related 51% company rules determine the profit limit applicable to each company in the group in any accounting period and do not impact on companies that are able to use group relief.
Companies are able to group relieve from the date they join the 75% group to the date they leave the 75% group as shown in that example.
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