UK tax help

Group relief - Group

You can use 3 sheets in the group module to make group relief claims and surrenders within your group:
  • Losses matrix
    : This sheet lets you either manually enter or automatically calculate group relief between group companies.
  • Carried forward losses matrix
    : This sheet lets you either manually enter or automatically calculate group relief for carried forward losses between group companies.
  • Group relief profit and loss information
    : This sheet summarises the maximum claims and surrenders possible for all group companies.

Complete the losses matrix sheet

The sheet automatically inserts companies with profits as rows and companies with current period losses as columns. If a company has both current period profits and losses, the matrix shows profits net of losses (after offset), and losses before offset (ignoring any offset against profits). After the matrix, you’ll see the amount of losses currently offset against the company’s own profits. You can preserve this offset using the
Group relief profit and loss information
 sheet.
You can adjust the order of companies in the matrix by moving rows on the
Group member
 sheet, or by overriding the default
Sort Order
 and selecting
Sort
.
You may complete the matrix manually or automatically:
  • To complete it automatically, select the lightning symbol, then
    Current year losses – Automatic Allocation
    . The system allocates losses to profit-makers based on the current row and column order, starting from the beginning of the matrix and moving to the end. The function doesn’t override existing manual entries, but factors them in when calculating remaining profits and losses.
  • To clear the matrix, select
    Current year losses – Clear all values
    . This clears both manual and automatic entries.
important
The
Automatic Allocation
 function doesn’t optimise group relief claims or use losses in the most tax-efficient way. You'll need to review all allocations yourself.

Complete the carried forward losses matrix sheet

The sheet automatically inserts companies with qualifying profits as rows and companies with carried forward losses as columns.
You can adjust the order of companies by moving rows on the
Group member
 sheet or overriding the default
Sort Order
 and selecting
Sort
.
You may complete this matrix manually or automatically:
  • To complete it automatically, select the lightning symbol, then
    Current year losses – Automatic Allocation
    . The function allocates losses to profit-makers based on the current order, starting from the beginning of the matrix and moving to the end. It doesn’t override any manual entries already present, but includes them in calculations.
  • To clear the matrix, select
    Current year losses – Clear all values
    . This clears both manual and automatic entries.
important
  • The
    Automatic Allocation
     function doesn’t optimise group relief claims or use losses in the most tax-efficient way. You are responsible for reviewing all allocations.
  • If you need to complete both the
    Losses matrix
     and the
    Carried forward losses matrix
    , always complete the
    Losses matrix
     first. Update and save all company calculations, then update the group module before completing the
    Carried forward losses matrix
    . This order is important because any group relief claimed is treated as a step 2 deduction in the
    Carried forward losses
     sheet, which may affect a company’s surplus capacity.

Complete the group relief profit and loss information sheet

The sheet automatically pulls the following from each entity’s calculations:
  • For group relief:
    • Total profit before group relief
    • Total losses
  • For group relief using carried forward losses:
    • Surplus capacity
    • Total carried forward losses
Usually, these amounts match the profits available for group relief and the losses available to surrender. However, you may want to exclude some or all of a company’s profits or losses from group relief—for example, to ensure a company uses its current period losses against its own profits before surrendering them. In these cases, use the data entry row to make manual adjustments.
If your group includes consortium companies, indicate this by entering the consortium percentage on the
Group member
 sheet. The
Group relief profit and loss information
 sheet will automatically reduce those companies’ profits and losses to the amounts available for the group.

This article applies to:

  • PRODUCT: ONESOURCE Corporate Tax

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