CTM80440 - Groups: group relief: example - surrender of excess capital allowances
Company H is a 100% per cent subsidiary of Company C. Both companies prepare their accounts to 31 December. »Ê¹ÚÌåÓýapp accounts and computations of the companies for the 12 months to 31 December 2011 show the following.
| Company C | Amount |
|---|---|
| Trading profits | £3,000 |
| Income from special leasing | £1,000 |
| Capital allowances in respect of speacila leasing | £1,500 |
| Company H | Amount |
|---|---|
| Trading profit | £1,000 |
Company H claims relief , with the consent of Company C, in respect of the excess capital allowances (CTM80120) of £500 of Company C. Note that Company C can surrender all its excess capital allowances, notwithstanding it has other profits for the accounting period.
»Ê¹ÚÌåÓýapp CT computations for the accounting period to 31 December 2011 are as follows.
| Company C | Amount |
|---|---|
| Trading income | £3,000 |
| Special leasing income (Income £1,000 less CAs £1,0000 | nil |
| CT profits | £3,000 |
| Company H | Amount |
|---|---|
| Trading income | £1,000 |
| Group relief claimed (CTA10/S101) | (£500) |
| CT Profits | £500 |
Company C has no balance of capital allowances available to carry forward as follows.
| Capital Allowance usage | £ | £ |
|---|---|---|
| Capital allowances in respect of special leasing | - | £1,500 |
| Used in computation | (£1,000) | Ìý |
| Surrender as group relief | (£500) | (£1,500) |
| Available to carry forward | nil | Ìý |