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B schedule - Group relief matrix |
See Also
Corresponding Period Group Relief Allocation | Non Abacus company | O schedule - Group members
Select from the following headings:
Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors
This schedule provides the mechanism for losses to be surrendered between companies. You should enter the appropriate claims and surrenders according to the circumstances of the group. Where there is a mix of companies within/outside the group simplified arrangements, the companies outside the regime will be displayed in italics as stated in the footnote.
There is also an automatic loss allocation feature - see below for more information.
Loss-making companies
Loss-making companies are shown across the top of the schedule, and profitable companies down the left hand side. Losses are allocated by entering positive figures or formulae at the intersection of the appropriate row and column.
Choosing the relevant loss claimed
To the right a number of figures are shown which may be relevant for choosing the relevant loss claimed, including taper relief limits and any double tax relief lost.
Non corresponding period
Where a company has a non corresponding period, the period end will be shown in addition to the company name on the summary and loss tables. Figures for corresponding losses and profits will also be shown against the row or column. Note that these corresponding profit and loss limits are intended as a guide only. They show the corresponding figure by reference to the group period, which may not be relevant where both the surrendering and claimant companies have periods which differ from the group period. In addition, the user should consider the more stringent rules introduced by F(No2)A 1997 with regard to group relief surrenders, for reference to overlapping periods as appropriate.
This schedule is automatically developed in every group file.
Each column heading is described below:
Profit after relief
This shows profit after group relief surrenders which have been entered.
Total relief
This shows the total of losses to be surrendered to a particular company.
Total profits
This shows profits before any loss offset.
Lower taper limit
This shows the lower tapering relief limit, based on the number of associated companies shown in the underlying computation.
Upper taper limit
This shows the upper tapering relief limit, based on the number of associated companies shown in the underlying computation.
Corresponding profits
This shows, for non corresponding periods, the portion of the profit corresponding to the common period between the group period and the individual company's period.
Corresponding days - claimant company
If the period non-corresponding, the number of days corresponding to the common period for the profitable company is shown.
Further relief limit for DTR credit
This shows the additional losses that could be surrendered to the company, without restricting double tax relief credits. If there is no DTR in the relevant computation, the entry shows No DTR.
This shows the maximum amount of group relief which each company may claim. It comprises profits as reduced for assumed offsets of trading losses, non-trading deficits etc.
This shows the total losses surrendered by a particular company.
This shows any losses already carried back per the computation.
This shows losses remaining for surrender. Note that these may not be available for surrender to particular companies, due to non-coterminous periods.
Losses not available for surrender as group relief (see the O schedule (Group members) on type of group member).
This shows total losses available for group relief surrender after current year offsets claimed in the individual companies computations, subject to any exclusions due to non-coterminous periods, companies joining the group during the period, etc.
Losses before S459 and S37 optional offsets for other periods
This line shows the total losses available for surrender as group relief.
Surplus expenses of management, charges on income, UK property losses and capital allowances given by discharge or repayment are available to the extent that they exceed current period profits. Trading losses and non-trading deficits are stated before current year offsets. The company may make a claim for the whole or any part of the deficit to be set off against any profits of the company (of whatever description) for the deficit period.
Adjustments to current period offsets should be made in the individual company computations.
This shows, for non-corresponding periods, the portion of the loss corresponding to the common period between the group period and the individual company's period.
Corresponding days - surrendering company
If the period is non-corresponding, the number of days corresponding to the common period for the loss-making company is shown beneath the corresponding loss.
Current period loss composition before offsets
The foot of the schedule shows the composition of the current period loss to enable the user to decide which losses should be relieved and which should be carried forward (subject to the statutory rule specifying the order of offset in some cases - see below).
Current period loss composition after offsets
This section shows the loss composition after taking in to account offsets happening within the company.
Override allocation of reliefs
This section allows you to override the way in which the software utilises the different types of losses surrendered. If you use this section the software will check that the total entered matches the total relief entered in the matrix and give an error if they differ. Please note that this section gives you complete control over the loss offset and you should make sure that you are happy the surrenders comply with relevant legislation.
Current period losses carried forward are displayed.
Losses to be carried forward- data entry cells (before FY2005)
This allows the user to specify the amounts of losses of a particular category to be carried forward where the system's default offset is changed. When the underlying computation files are updated, any such change will be reflected in the relevant computations.
The default assumptions are that trading losses will be carried forward in priority to non trade deficits. Expenses of management will be carried forward in priority to capital allowances given by discharge or repayment.
For FY1998 onwards, UK property losses, charges on income and management expenses are shown as available for surrender only to the extent that, in aggregate, they exceed the surrendering company's gross profits for the surrender period. Any excess surrendered is first taken to be charges on income, then UK property losses and lastly management expenses.
Restrict gross profits by bf capital losses?
This flag, at the foot of the schedule, may be set to either Yes or No, as appropriate.
The flag is set to No by default (i.e. the adjustment is not made), but may be changed as required.
Non Abacus CompaniesDetails for companies where the computations have not been prepared using the software should be entered on the appropriate Non Abacus company schedule. This schedule may be developed from any of the principal schedules.
Automatic loss allocation
The Allocate reliefs button may be used to allocate losses automatically within the group. This function is available from FY 2005 onwards.
You should always carefully review the allocations made by the software.
When you press the button, the software allocates losses on the Group relief matrix (B schedule). Starting at the top left hand corner and working down the first column and then across each column in turn, the software takes note of excluded companies and does not allocate losses out of or to such companies. To mark a company as excluded, you should use the selectors at the top of the relevant column(s) or at the right-hand end of the row(s). Ring fenced profits are ignored. Reducing profits so as to restrict foreign tax credit (Displace DTR) must be explicitly selected.
Clicking the Allocate reliefs button will initiate a dialog which can be changed, as required:
If you have developed the daily apportionment sheets you will also be able to select the ?Use daily apportionment? option. The automatic allocation will then allocate losses against profits on a daily basis in substantially the order in which they appear on the daily apportionment sheet. This prevents the use of excess losses on a particular day. It assumes that all claims and surrenders are made at the same time, and does not address what happens if the order in which claims are made requires to be considered.
For FY 2005, the following options are also available:
Unless a flag is set to ignore a company, the previous allocations will be reset before any subsequent allocations are performed.
The automatic allocation enters a query on each cell into which it puts a number. You should review and clear these queries appropriately.
Error | How to
solve it |
| Loss claims exceed profits by £ | This error occurs when a company tries to claim losses from another company which exceed the profit of the claiming company. The company claiming group relief can only use the losses to reduce their profit to zero, not to create a loss. |
| Losses c/f cannot be negative | This error is caused by the user offsetting losses in excess of the actual amount of losses available to be offset, resulting in a negative losses figure. Check that the losses offset are not in excess of the actual losses figure. |
| Analyse | This error appears if information entered into this schedule is not completed on the N schedule. This error can be solved by ensuring that all the relevant information is entered into the N schedule. |
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