CTM05140 - Corporation tax: restriction on relief for carried-forward losses: deductions allowance for a company in a group for a whole accounting period
CTA10/S269ZR to CTA10/S269ZV
A group of companies has a single deductions allowance known as the group deductions allowance (CTM05190). For these purposes, a group is defined at CTA10/S269ZZB (CTM05160).
»Ê¹ÚÌåÓýapp amount of the group deductions allowance is £5 million per 12 month accounting period, reduced proportionately if the accounting period is less than 12 months (CTA10/S269ZR (2) and (4)(b)).
»Ê¹ÚÌåÓýapp allowance is allocated among group members using the group allowance allocation statement (CTM05200) which is submitted by the group’s nominated company (CTM05180).
»Ê¹ÚÌåÓýapp group may choose how its deductions allowance is divided among group members provided none of its members exceeds the maximum total allowance that may be allocated to a company. This is £5 million for a 12 month accounting period (CTM05210).
Where a company is in one group for the whole of its accounting period, the company’s deductions allowance is the amount allocated to it on the allocation statement. »Ê¹ÚÌåÓýapp company then specifies its deductions allowance on its tax return (CTA10/S269ZZ).
If a company is in one group for the whole of its accounting period and is not allocated any deductions allowance by the group, the company has a deductions allowance of nil.