Test your understanding
(1). Axe Ltd owns 90% of the ordinary share capital of Bat Ltd. Bat Ltd in turn owns 70% of the ordinary share capital of Club Ltd. Club owns 100% of the ordinary share capital of Dense Ltd and 80% of the ordinary share capital of Edgy Ltd.
Along with Bat Ltd, which companies form a chargeable gains group with Axe Ltd?
A Club Ltd only
B Club Ltd and Dense Ltd only
C Club Ltd, Dense Ltd and Edgy Ltd
D No other companies
(2). Green Ltd owns 100% of the ordinary share capital of Blue ltd. For the year ended 31 March 2024, Green Ltd had taxable total profits of £132,000. For the nine-month period ended 31 December 2023, Blue Ltd had a trading loss of £84,000.
How much of Blue Ltd’s trading loss can Green Ltd claim against its taxable total profits for the year ended 31 March 2024?
A £99,000
B £84,000
C £132,000
D £63,000
(3). Which of the following cannot be surrendered as part of a current year group relief claim?
A Unrelieved qualifying charitable donations
B Trading losses
C Unrelieved property business losses
D Capital losses
(4). Soup Ltd owns 100% of the ordinary share capital of several loss-making companies. The results of Soup Ltd for the year ended 31 March 2024 are: