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