Corporation tax – Group relief for ATX-UK - part 4: self-test

Test your understanding

(1). FY Ltd has gross overseas profits of £72,000 in respect of which it has paid overseas tax of £9,000. It also has UK profits of £190,000.

What is the maximum amount of group relief that FY Ltd can claim, such that all of the double tax relief is utilised?

(2). PH Ltd prepares accounts to 31 December each year.

On 1 August 2020 PH Ltd purchased the whole of the ordinary share capital of RD Ltd. RD Ltd changed its year end from 30 June to 31 December and prepared accounts for the six months ended 31 December 2020.

On the assumption that RD Ltd has trading losses for the period, state how the maximum amount of group relief that may be surrendered by RD Ltd to PH Ltd for the year ended 31 December 2020 will be determined.