C1C3C4C5C6Part 5Loan Relationships
Pt. 5 applied (with modifications) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 990(5), 1184(1) (with Sch. 2)
Pt. 5 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 5; S.I. 2012/628, art. 3(b)
Pt. 5 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 2; S.I. 2011/2576, art. 5
C2C3Chapter 7Group relief claims involving impaired or released consortium debts
Pt. 5 Chs. 6-8 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
367Reduction of credits exceeding impairment losses
1
This section applies if, apart from this section, for any group accounting period—
a
the total of the impairment losses and release debits brought into account for that period in respect of relevant consortium creditor relationships by—
i
the member company, and
ii
every group member,
is less than
b
the total credits so brought into account by them in connection with debts owed by the companies which are the debtor consortium companies in respect of those relationships.
2
Those credits are reduced (but not below nil) in accordance with subsection (3).
3
The amount of reduction in the case of each credit is calculated as follows.
Step 1
Find the total amount by which the debits in respect of the relationships for previous group accounting periods have been reduced under section 365(4).
Step 2
Deduct the total amount by which credits have previously been reduced under this section from the amount found at Step 1.
Step 3
Apportion the amount found at Step 2 between the credits in proportion to their respective amounts.
Pt. 5 applied (with effect in accordance with Sch. 24 paras. 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 para. 15(2)(3)