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Relation of group relief to other relief.
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117.—(1) Group relief for an accounting period shall be allowed as a deduction against the claimant company's total profits for the period before reduction by any relief derived from a subsequent accounting period, but as reduced by any other relief from tax (including relief in respect of charges on income under section 10 (1)).
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(2) The said other relief shall be determined on the assumption that the company makes all relevant claims under section 16 (2) or 14 (6).
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(3) For the purposes of this section “relief derived from a subsequent accounting period” means—
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(a) relief under section 16 (2) in respect of a loss incurred in an accounting period after the accounting period the profits of which are being computed, and
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(b) relief under section 14 (6) in respect of capital allowances falling to be made for an accounting period after the accounting period the profits of which are being computed, and
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(c) relief under section 176 (transitional relief on cessation of trade, etc.) where the company ceases to possess the source of income in question at a time after the end of the accounting period the profits of which are being computed, and
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(d) relief under section 18 (terminal loss in trade) in respect of a loss incurred in an accounting period after the end of the accounting period the profits of which are being computed.
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(4) The reductions to be made in total profits of an accounting period against which any relief derived from a subsequent accounting period is to be set off shall include any group relief for that first-mentioned accounting period, and this subsection shall have effect notwithstanding that under section 176 (3) relief under that section is to be given in priority to any other relief.
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