CTM80145 - Groups: group relief: claims for relief

ICTA88/S402 (5) and (6), FA98/SCH18

A company can claim group relief ( CTM81500) in respect of the loss or other amount of one or more surrendering companies. And a company may surrender its loss to one or more claimant companies. There is guidance on claims procedure under CTSA at CTM97000 onwards.

A group relief claim need not be for the full amount of the loss etc.

No payment to the surrendering company is required.

A payment which the claimant company in fact makes to the surrendering company up to the amount of the loss, etc surrendered is ignored. It is not taken into account in computing the profits or losses of either company, and is not treated as a charge on income or a distribution. The payment must be made under an agreement between the claimant company and the surrendering company. The maximum payment that can be treated in this way is the amount of the trading loss etc, not the amount of relief in terms of tax.