CTM80570 - Consortia: group relief: items eligible for relief: potential restriction on surrender of trading losses

ICTA88/S403ZA (3)

The same types of losses and other amounts ( CTM80110) which can be surrendered on a group claim to group relief can also be surrendered on a consortium claim.

However there is a restriction on the amount of trade losses that can be surrendered a company owned by a consortium.

If the surrendering company has other profits in the accounting period against which it could set off all or part of the loss under ICTA88/S393A (1) ( CTM04500 onwards), then the amount of trade loss available for surrender is restricted by the amount which could be so set off, whether such a set off is claimed or not.

See the example at CTM80696.

ICTA88/S403ZA (4) provides that where both:

• ICTA88/S403ZA (3),

and

• ICTA88/S405 (1) to (3) ( CTM80580) apply,
• • Section 403ZA (3) is applied before Section 405.