Group relief surrender with trade losses and Mgt exps

Group relief surrender with trade losses and...

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I'm dealing with a company that has losses available to surrender as group relief, including both trade losses and excess management expenses.

As far as I know, the surrender needs to be apportioned between the two, is this correct?  If so, can anybody give me the statutory reference that says so?  I have searched and can't find anything.  

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By Steve Kesby
15th Nov 2013 10:35

You choose

Before any group relief can be claimed, the surrendering company needs to decide what exactly it's willing to surrender. It can choose whether to and what to surrender.

The amount that can be surrendered is limited to the available profits that the recipient company has and everything that it claims is just set-off against those profits without regard to what it was in the surrendering company, because it doesn't matter.

The only person that cares what gets surrendered is the surrendering company:

charitable donations can only be used in the current year.non-trade deficits/losses on loan relationships and intangibles can only be set against non-trade profits when carried forward.trading losses can only be set against future profits of the same trade when carried forward.losses from a property business and excess management expenses can be set against total profits in future years.

So surrender the trading losses in favour of the management expenses.

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