LAM15030 - LAM15030 - Excess expenses, losses and deficits: Set-off of non-BLAGAB management expenses: CTA09/s1219

Exceptionally the general management expenses rules could apply to expenses from the management of grandfathered assets in Long Term Business Fixed Capital (LTBFC) (see LAM11000). See CTM08580 and CTM08620 for more detail on these rules.

In summary:

• expenses of the accounting period are set against the shareholders’ share of total profits in priority to other deductions;
• excess expenses can be surrendered as group relief for the period;
• excess expenses not used in the period are carried forward and are treated as management expenses of the next accounting period. They cannot be carried back;
• carried forward expenses can be set against the shareholders share of total profits of a subsequent period (no priority to other deductions);
• carried forward expenses incurred on or after 1 April 2017 can be surrendered as group relief in subsequent periods;
• carried forward excess expenses are subject to the loss restriction rules (LAM15200)