Introduction Equity holders Overview Section 137: Deduction from total profits
512.This section explains how group relief is given to the claimant company. It is based on sections 403, 407 and 411 of ICTA.
513.Subsection (1) is the link to section 4.
514.Subsection (2) makes clear that the claimant company may claim all or part of the surrendering company’s surrenderable amounts.
515.Subsection (3) subjects subsection (2) to the restrictions later in the Chapter. Paragraph (e) refers to one of the restrictions mentioned in section 403(4) of ICTA. The other restrictions in that subsection are referred to in sections 99(5) and 105(5) or are rewritten in section 109.
516.Subsection (4) is the rule that group relief is the final deduction to be given in arriving at a company’s taxable profits, subject only to the exceptions set out in subsection (5).
517.Subsection (5) sets out the reliefs that are to be given after group relief. So, for instance, group relief may reduce a company’s profits for an accounting period to an extent that there is a restriction to relief for losses carried back to that accounting period.
518.Subsection (6) makes clear that each relief in subsection (4) that depends on the making of a claim is to be taken account of on the assumption that the relevant claim is made. But there is an exception in the case of relief for non-trading loan relationship deficits: that relief is taken account of only if the relevant claim is actually made.
519.Subsection (7) ensures that an amount of relief is not given twice.