Tx notes fa22 Final

 
Example 2
 
 
Z plc is the holding company for a group of companies. The group structure is as follows:
Z plc
|
100%
|
A Ltd
|
80%
|
B Ltd
|
80%
|
C Ltd
For the year ended 31 March 2023 Z plc has a trading loss.
State the companies to which Z plc may surrender its trading loss in y/e 31 March 2023 
4.3. Group loss relief 
(a)
Trading losses may be surrendered to other companies in the group, which may then relieve 
the losses against their own taxable total profits.
(b)
Any member company may surrender its loss to any other member of the group:
‣
a holding company may surrender a loss to its subsidiary company
‣
a subsidiary company may surrender a loss to its holding company
‣
a subsidiary company may surrender a loss to a fellow subsidiary company.
(c)
The surrendering company is the company that surrenders its loss. 
(d)
The claimant company is the company to which the loss is surrendered.

---

162
Only on 
OpenTuition
you can find: Free ACCA notes 
•
Free ACCA lectures 
•
Free ACCA tests 
•
Free ACCA tutor support 
•
The largest ACCA community
June 2023 to March 2024 exams
Watch free ACCA TX lectures
4.4. The surrendering company 
(a)
The surrendering company may surrender as much of its trading loss as it wants to and it is not 
necessary to relieve a trading loss against its own income and gains first.
(b)
The losses which may be surrendered are:
‣
any amount of a current period trade loss
‣
unrelieved qualifying charitable donations of period
‣
unrelieved property business losses of period
‣
unrelieved trading and property business losses brought forward can be surrendered as 
group relief but only to the extent that they cannot be set off against the surrendering 
company’s own total profits.