CFM32090 - Loan relationships: non-trading deficits: group relief
Group and consortium relief claims
Companies can transfer losses and certain deficits to companies in the same group relationship by means of group or consortium relief.
In particular a group relief or consortium claim can be made under:
- CTA09/PT5 in respect of deficits from the current period
- CTA10/PT5A in respect of carried forward losses (post-2017 losses only)
A group or consortium relief claim falls under the general rules for group and consortium relief in CTA10/PT5. See CTM80000 for guidance on groups and consortia.
Restriction of consortium relief
In some circumstances there is a restriction to debits for bad debts or impairment losses where a company has had consortium relief. There may also be a restriction on the amount of the group relief that a company can claim if it has already had bad debt debits or impairment losses, in earlier years from a loan relationship with the consortium member surrendering group relief. There are details at CFM34000.
Group relief
There is no similar restriction on group relief arising in a group situation, as group companies cannot have impairment losses relief because they are connected (CFM35000).