Section 269ZR Deductions allowance for company in a groupF1

United Kingdom

(1)

This section makes provision as to the deductions allowance of a company for an accounting period where, at any time in the period—

(a)

the company is a member of a group, and

(b)

one or more other companies within the charge to corporation tax are members of that group.

(2)

The company's deductions allowance for the accounting period is the sum of—

(a)

any amounts of group deductions allowance allocated to the company for the period in accordance with sections 269ZS to 269ZV, and

(b)

the appropriate amount of non-group deductions allowance of the company for the period,

up to a limit of £5,000,000.

(3)

The “appropriate amount of non-group deductions allowance” of the company, for the accounting period, is—

\frac{DNG}{DAC} \times £ 5,000,000

where—

“DNG” is the number of days in the period on which the company is not a member of a group that has another member that is a company within the charge to corporation tax, and

“DAC” is the total number of days in the period.

(4)

If the accounting period is less than 12 months—

(a)

the appropriate amount of non-group deductions allowance, and

(b)

the limit in subsection (2),

are proportionally reduced.

(F25)

See section 269ZYA for further provision about the deductions allowance for a company without a source of chargeable income which is a member of a group.

Annotations

Textual amendments

F1: Pt. 7ZA inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 16
F2: S. 269ZR(5) inserted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 32, 42 (with Sch. 4 paras. 43-46)

Notes on Part 7ZA

Modifications

C1: Pt. 7ZA modified (retrospective to 29.10.2018) by Finance Act 2020 (c. 14), Sch. 4 para. 46
C2: Pt. 7ZA modified by 1992 c. 12, Sch. 7A para. 6(1C) (as inserted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 18(4), 42 (with Sch. 4 paras. 43-46))
C3: Pt. 7ZA applied (with modifications) (with effect in accordance with Sch. 4 para. 43(1) of the amending Act) by Finance Act 2020 (c. 14), Sch. 4 para. 44(4)
C4: Pt. 7ZA applied (with modifications) (with application in accordance with Sch. 4 para. 45(1)(2) of the amending Act) by Finance Act 2020 (c. 14), Sch. 4 para. 45(4)
C5: Pt. 7ZA disapplied (24.2.2022) by Finance Act 2022 (c. 3), Sch. 2 para. 21