CTM80545 - Consortia: group relief: amount of relief: claimant is company owned by consortium

ICTA88/S403C (3)

The amount of relief available to a company owned by a consortium may claim against its profits for the overlapping period ( CTM80225) from a consortium member is limited to relevant fraction of the its total profits for that period. The fraction is the lowest of:

• the percentage holding of the ordinary share capital of the claimant company beneficially owned by the consortium member,
• the consortium member 's percentage entitlement to profits available for distribution by the claimant company to its equity holders,
• the consortium member's percentage entitlement to assets available for distribution by the claimant company to its equity holders on a notional winding-up.

The detailed rules on these three percentages are in ICTA88/SCH18. They apply as in CTM81000 onwards, but read any reference to:

• 'parent company' as a reference to 'consortium member', and
• 'subsidiary company' as a reference to ‘company owned by the consortium'.

The percentages are based on entitlement in the overlapping period ( CTM80225) of the consortium company and the surrendering company. Where any of the percentages has varied in the overlapping period, the average percentage is taken, as in CTM80540.