Section 269ZR — Corporation Tax Act 2010: Deductions allowance for company in a group

Deductions allowance for company in a group 269ZR 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— DNG DAC × £ 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.

5 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.