2 group companies
Parent has 14 month period to December 2014 (14 month profts £100k including dividend income of £15k received 31 December 2014)
Sub has 12 month period to December 2014 (loss available to group relieve is £40000)
My question is, when calculating the max profits against which group relief can be claimed in the parent, is it correct to use the different tax adjusted proftits for the 12 months to 31 October 2014 and then 2 months to Dec 2014 or do I use 12/14 x profits for whole period and 2/12 x profit for whole period?
Replies (7)
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Overlapping period
The loss for the 12-month period to 31 December 2014 is surrendered against profits for the same 12-month period. So you need to work out the available profits for that 12-month period. Depending on the source(s) of those profits it may be a straight 12/14 apportionment, or it may be something else.
You're right, Portia
In my haste, I over-simplified.
If nothing more than time-apportionment is required then you have 10/14ths plus 2/14ths = 12/14ths.Youreeka.
Or it could be something else.