Taxes Consolidation Act 1997 section 421

Relation of group relief to other relief

Section 421 sets out the ordering rules that govern how group relief interacts with other reliefs when computing the taxable profits of a claimant company.

• Group relief under section 420 is deducted against the claimant company's total profits for the period before any relief derived from a subsequent accounting period is applied.
• Before group relief is deducted, profits must first be reduced by all other available reliefs, including charges on income under section 243(2) and losses or allowances brought forward from earlier periods.
• For this purpose, it is assumed that the claimant company has made all relevant claims under section 308(4) (excess capital allowances) and section 396(2) (trading losses).
• Group relief for a given accounting period must be given before any relief carried back from a later accounting period is set against the profits of that period.

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