CTM82510 - Corporation Tax: Group relief for carried-forward losses: Consortia: Conditions for a claim

CTA10/S188CB-CI

The claimant company may make a claim for relief in an accounting period (the claim period) for all or part of the surrenderable loss or other amounts of one or more surrendering companies if:

  • The surrendering company consents to the claim,
  • There is an overlapping period, and
  • One of the consortium conditions is met.

Consortium conditions

A claim for group relief for carried-forward losses in consortia can be made where the surrendering company and claimant company are both UK related and meet one of the four consortium conditions.

These conditions are that one of the companies is a company owned by the consortium, and the other company is either a member of the consortium or in the same group as a member of the consortium.

But the conditions are not met if a sale of shares in the consortium company by the member of the consortium would be a trading receipt of that member.

Members of the consortium and companies owned by a consortium have the same meaning as they do for group relief for consortia (CTA10/PART5) (CTM80530).

Condition 1

CTA10/S188CF

Consortium condition 1 is that the claimant company is a trading company or holding company owned by the consortium, including a 90% trading subsidiary of a holding company owned by the consortium (CTA10/S188FB-FC, CTA10/PART5/S153). The surrendering company is a member of the consortium.

Condition 2

CTA10/S188CG

Consortium condition 2 is that the claimant company is a trading company owned by the consortium or a holding company owned by the consortium which has a 90% trading subsidiary. The surrendering company is in the same group of companies as a member of the consortium (link company).

Condition 3

CTA10/S188CH

Consortium condition 3 is that the claimant company is a member of the consortium. The surrendering company is a trading company owned by the consortium or a holding company owned by the consortium which has a 90% trading subsidiary.

Condition 4

CTA10/S188CI

Consortium condition 4 is that the claimant company is in the same group of companies as a member of the consortium (link company). The surrendering company is a trading company owned by the consortium or a holding company owned by the consortium which has a 90% trading subsidiary.

CTA10/S188CJ

A company is UK related if it is:

  • A UK resident company, or
  • A non-UK resident company carrying on a trade in the UK through a permanent establishment.

Claimant company is company owned by the consortium

CTA10/S188CB, CTA10/S188CK

Where the claimant company is the consortium company (the company owned by the consortium (CTA10/S188FB, CTA10/PART5/S153)), consortium condition 1 or 2 must be met at some time during the overlapping period. The company can claim for losses or other amounts of the surrendering company which can be the consortium member or a member of the consortium member’s group.

Claimant company is member of consortium or in the same group as member of consortium

CTA10/S188CC, CTA10/S188CK

Where the claimant company is a member of the consortium or in the same group as a member of the consortium, condition 3 or 4 must be met throughout the period beginning before or during the accounting period in which the loss is incurred (loss-making period) and ending during or after the overlapping period (CTM82090).

The claimant company can only claim for losses or other amounts incurred by the surrendering company in periods in which condition 3 or 4 was met.