Taxes Consolidation Act 1997 section 456

Restriction of group relief

Section 456 restricts how losses relating to a company's 10%-taxed activity and the related excess charges on income may be surrendered as group relief, confining that relief to the claimant company's own income from the sale of goods.

• The key terms - trade, income from the sale of goods, charges on income paid for the sale of goods, and a loss from the sale of goods - carry the meanings already established in sections 454 and 455.
• A surrendering company's loss from the 10%-taxed activity, or its excess of charges on income paid for the sale of goods, cannot be set against the claimant company's total profits or its relevant trading income.
• Such a loss or excess may be set only against the claimant's income from the sale of goods for the corresponding accounting period, and only after that income has been reduced by deductions under section 454 and amounts set off under section 455.
• Group relief under this section is applied after section 396 relief for prior-year losses but before section 397 relief for succeeding-year losses; consortium claims are limited to the member's share; and Shannon certified operations are carved out to the extent of their section 323(2) capital allowances.

---