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Group Relief - different accounting periods

Calculation of losses

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Hi, was hoping someone confirm my calcs are correct using the below. For simplicity, I have rounded the amounts to nearest £10k. Subsidiary is on left, with holding company (who became holding co from 01.11.18) on right. I am trying to calculate the amount of group relief available in both periods for the holdco (YE 31.10.19 & 6m ending 30.04.20)

01/05/2018 - 30/04/2019    01/05/2019 - 30/04/2020                                                   01/11/2018 - 31/10/2019          01/11/2019 - 30/04/2020

Loss £10,000                          Loss £110,000                                                                   Profit £70,000                              Profit £30,000

YE 31.10.19

Is it Loss £10k x 6/12 = £5k + 

Profit £70k x 6/12  = £35k, so £40k in total?

6m Ending 30.04.20

£30k as this is lower than £110k x 6/12

 

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By Matrix
28th May 2020 12:55

It is hard to see which are which but, assuming both of the losses are in the sub, then it looks right. It took me a while to get there since the £35k is used since this is the lower of £110,000 x 6/12 and £70,000 x 6/12. Obviously this assumes all other conditions are met and you have looked at the anti-avoidance rules.

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Psycho
By Wilson Philips
28th May 2020 14:52

Agreed

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