CTM80150 - Groups: group relief: which companies may claim and surrender group relief?
CTA10/S131, S134, S136, Chapter 5 of Part 5 of CTA10
Prior to 1 April 2000
Both the claimant and surrendering companies had to be:
- resident in the UK, and
- members of the same group (CTM80151).
All the companies forming a group relationship between the surrendering and claimant companies had to be resident in the UK.
From 1 April 2000 to 1 April 2006
Both the claimant and surrendering companies had to be:
-
within the charge to CT, that is they must either:
- be resident in the UK, or
- if not resident in the UK, carry on a trade in the UK through a permanent establishment,
and be
- members of the same group (CTM80151).
See CTM80305 onwards for guidance on group relief claims and surrenders by UK permanent establishments.
For accounting periods ending on or after 1 April 2000 group relationships can be formed by reference to companies resident anywhere in the world. For transitional rules on accounting periods spanning 1 April 2000 see CTM80370.
From 1 April 2006
Both the claimant and surrendering companies must, under CTA10/S131, be:
-
UK related, that is they must either:
- be resident in the UK, or
- if not resident in the UK, be within the charge to Corporation Tax. For example:
- by carrying on a trade in the UK through a permanent establishment,
- from 5 July 2016, having profits of a trade of dealing in or developing UK land,
- from 6 April 2020, by carrying on a UK property business.
and be
- members of the same group (CTM80151).
The phrase “UK related” was adopted in CTA10 and defined in S134.
In addition, under Chapter 3 of Part 5 CTA10, the surrendering company may be resident in a European Economic Area territory, if certain conditions are satisfied (CTM81500 onwards). For transitional rules on claims from other EEA territories in accounting periods spanning 1 April 2006 see CTM81506.
For guidance on when companies are members of the same group see CTM80151.