Chapter 20 - Groups of Companies

Question 1

What are the two situations which special tax rules apply to?

Answer 1

1) A group relief
2) A gains group

Question 2

What are the three advantages to being in a group relief group?

Answer 2

1) Trade losses can relieved efficiently
2) Use capital losses efficiently around the group
3) Maximise the advantages to rollover relief

Question 3

What are the three advantages of being in a gains group?

Answer 3

1) Transfer capital assets efficiently around the group
2) Use capital losses efficiently around the group
3) Maximise the advantages of rollover relief

Question 4

What are the three things a loss making company can surrender?

Answer 4

1) Trading losses (current period, brought forward losses to the extent that they cannot be used against the surrendering companys own total profits
2) Excess QCDs
3) Excess property business losses (current period and brought forward losses

Question 5

What is the formula to calculate loss available to surrender for overlapping accounting periods?

Answer 5

Loss of surrendering company * (Length of overlap period/length of surrendering co accounting period)

Question 6

What is the formula to calculate profit against which relief can be claimed?

Answer 6

Profit of claimant * (length of overlap period/length of claimant co accounting period)

Question 7

The maximum group relief claim is the lower of?

Answer 7

The formulas used to calculate loss available to surrender and profit of claimant