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. FY Ltd is in a large corporate group such that it will be liable to the main rate of corporation tax regardless of the amount of group relief claimed.

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 March each year.

On 1 November 2023 PH Ltd purchased the whole of the ordinary share capital of RD Ltd. RD Ltd changed its year end from 30 September to 31 March and prepared accounts for the six months ended 31 March 2024.

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 March 2024 will be determined.