CTM82070 - Corporation Tax: Group relief for carried-forward losses: Claims

FA98/SCH18/PARA66-77, CTA10/SCH4/PART11

Companies can claim group relief for carried-forward losses in respect of losses or other amounts of one or more surrendering companies. Both the claimant company and the surrendering company must meet the group condition (CTM80151) and the claim conditions must also be met.

The surrendering company must have carried-forward losses available and must give notice of consent to surrender those losses to the claimant company (CTA10/S188BB, FA98/SCH18/PARA70-71A). There are restrictions on the types of losses and other restrictions that may be surrendered.

The claimant company must make a claim for group relief for carried-forward losses in its company tax return or by amendment to the return for the accounting period to which the claim relates (CTA10/S188CB, FA98/SCH18/PARA67-68). The notice of consent must be given at or before the time of the claim (FA98/SCH18/PARA70(3)).

The rules on group relief claims under Corporation Tax self-assessment contained in FA98/SCH18/PARA66-77 apply to claims to group relief for carried-forward losses (CTM97002). There are additional requirements on residency status and notice of consent for a claim for group relief for carried-forward losses to be valid.

Residency of claimant company, surrendering company and other companies

Claims for group relief for carried-forward losses must state whether or not the surrendering company, claimant company or another company by reference to which the surrendering and claimant companies are members of the same group was resident in the UK in either or both of the claim period and surrendering period to which the claim relates to (FA98/SCH18/PARA68(5)-(6)).

As well as meeting the general conditions set out in Paragraph 71 (CTM97020), notice of consent for group relief for carried-forward losses must identify the particular loss and/or other amount that is being surrendered and specify the relevant provision under which the amount was carried forward to the surrender period (FA98/SCH18/PARA71A).

Where the notice of consent relates to a loss or other amount in respect of which Corporation Tax relief has already been given for any accounting period, the surrendering company must amend its return for that accounting period. This must be done at the same time as when the notice of consent to surrender is given (FA98/SCH18/PARA72(1)).