Cash pool and Claimant company: Difference between pages

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A cash pool is a structure involving several related bank accounts whose balances have been aggregated for the purposes of optimising interest paid or received and improving liquidity management.
In the context of UK group tax relief, the company which obtains the benefit of the relief from another group company (the surrendering company) under group relief provisions.
 
A cash pool can be physical or notional.
 
 
A physical cash pool is a concentration account used for the purposes of managing liquidity. Surplus funds are physically concentrated into the account in order to maximise interest. Deficit accounts are covered by transfers from the cash pool in order to minimise overdraft interest.
 
 
A notional cash pool is a structure involving several related accounts whose balances have been aggregated for the purposes of optimising interest paid or received.  In other words a bank looks only at the total balance of the accounts in the notional pool when calculating interest, but there is no physical movement of funds.
 


== See also ==
== See also ==
* [[Aggregation]]
* [[Group relief]]
* [[CertICM]]
* [[Concentration account]]
* [[Consolidation]]
* [[Liquidity]]
* [[Master account]]
* [[Notional pooling]]
* [[Legal implications of cash pooling structures]]
 
 
===Other links===
[http://www.treasurers.org/node/9923 The pros of pooling, Sarah Boyce, The Treasurer, March 2014]
 
[http://www.treasurers.org/node/8824 Take the plunge, The Treasurer, March 2013]


[[Category:Cash_management]]

Revision as of 14:17, 23 October 2012

In the context of UK group tax relief, the company which obtains the benefit of the relief from another group company (the surrendering company) under group relief provisions.

See also