While numerous steps have been placed in place by the government to help businesses withstand the impact of the pandemic on their trading outcomes, it is becoming more clear that many companies would have suffered or expected trading losses. Are you looking for an accountant in London to help you with your startup business?
We have prepared a short guide that integrates early relief from trading losses, as outlined in the previous article. This now offers more clarity on situations in which it is even possible to consider requesting and taking advantage of business relief to a business or group of companies.
The relief rules for the in-year group are contained in Part 5 of CTA 2010, while the relief rules for the carry-forward group are contained in Part 5A of CTA 2010. There is a description of an 'overlapping time' in both sets of rules for which losses can be surrendered, as follows:
A group relief claim is probable, subject to various restrictions, limits and order of relief, if the 'surrendering company' agrees to the claim and the claimant company and the surrendering company are in the same (75%) category for a 'overlapping period. 'An overlapping duration is a typical duration of at least one day between the 'claim period' and the 'surrender period.'
The claim period is the applicant company's accounting period during which the community relief is sought. The period of surrender shall be the period of accounting for the surrendering company to which the losses and other sums are carried forward. The company that surrenders means the company that has damages or other numbers.
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