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CTA10/S99(1)(f), CTA10/S103, CTA09/S1219, CTA10/S105

Excess management expenses can be surrendered and claimed as group relief (CTM80105).

This does not apply where the surrendering company carries on the business of life assurance (CTA09/S1223A).

Management expenses means expenses that are deductible for the surrender period under CTA09/S1219 (see CTM08150).

Management expenses are a ‘relevant amount� for the group relief provisions, so can only be surrendered to the extent that the total of the surrendering company’s relevant amounts exceeds the ‘profit-related threshold� (or ‘gross profit� in surrendering periods ended before 20 March 2013; see CTA10/S105, CTM80142). This is the case regardless of whether the surrendering company uses any of the relevant amounts against its own profits.

»Ê¹ÚÌåÓýapp calculation will need to take into account the prescribed order of surrender of relevant amounts (see CTM80143).

Excess management expenses does not include:

• management expenses brought forward from another accounting period under CTA09/S1223, or
• brought forward losses of a company with investment business, that ceases to carry on UK property business, that are treated as management expenses of the current period under CTA10/S63.

See the example at CTM80445 on surrender of excess management expenses.