Chapter 22 - Groups

Question 1

Companies in a group can give and receive trade losses to one another?

Answer 1

True

Question 2

Before a trade loss can be relieved in a group, it must be offset against their own profits first?

Answer 2

False

Question 3

Is Group Relief an all or nothing claim?

Answer 3

NO - companies can choose how much group relief to surrender (up to the maximum amount).

Question 4

When does a degrouping charge arise?

Answer 4

When a company received an asset on a no gain no loss transfer from a fellow group member, and it then leaves the group within 6 years of receiving the asset.

Question 5

In order for there to be a gains groups, there has to be a holding of how much between each company?

Answer 5

75% (minimum)

Question 6

Companies within a gains group can transfer what to other group members?

Answer 6

Capital losses

Question 7

What is group rollover relief (for chargeable gains purposes)?

Answer 7

A chargeable gain (qualifies for rollover relief) of one group member may be rolled over against the qualifying reinvestment of another group member.