Finance Act 2021

2 After section 269ZS (group deductions allowance and the nominated company) insert—

“269ZSA Group allowance nomination: former groups

(1) This section applies where—

(a) a group ceases to be a group for the purposes of this Part (because the companies that were members of the group no longer together meet the condition in section 269ZZB(2)), and

(b) immediately before the group ceased to be a group for the purposes of this Part—

(i) two or more members of the group were companies within the charge to corporation tax, and

(ii) no group allowance nomination under section 269ZS had effect in relation to the group.

(2) All the companies that were, immediately before the group ceased to be a group for the purposes of this Part, members of the group and within the charge to corporation tax may together nominate (“the group allowance nomination”) one of their number (“the nominated company”) for the purposes of this Part.

(3) It is irrelevant for the purposes of subsection (2) whether or not the companies (including the nominated company) are within the charge to corporation tax when the nomination is made.

(4) A group allowance nomination under this section has effect during the period—

(a) beginning with the date on which it is stated to take effect (see section 269ZS(5), as it has effect by virtue of subsection (5)(a) of this section), and

(b) ending immediately before the group ceased to be a group for the purposes of this Part.

(5) For the purposes of this Part, treat a group allowance nomination under this section as a group allowance nomination under section 269ZS, but that section is to apply to a group allowance nomination under this section subject to the following modifications—

(a) section 269ZS(5) has effect as if, for the words in brackets, there were substituted “(which must be earlier than the date on which the group ceased to be a group for the purposes of this Part)”;

(b) section 269ZS(6) has effect as if, for the words “is, when the nomination is made”, there were substituted “was, immediately before the group ceased to be a group for the purposes of this Part”;

(c) section 269ZS(7) does not apply (but see subsection (4) of this section);

(d) in section 269ZS(8), ignore references to the revocation of a group allowance nomination (however expressed).

(6) Only one group allowance nomination under this section may be made in respect of a group.”