CTM80580 - Consortia: group relief: group and consortium claims both possible: surrendering company is a group/consortium company

ICTA88/S405 (1) to (3), ICTA88/403ZA (4)

A company which is both a member of a group and a company owned by a consortium ( CTM80530) is referred to as a 'group/consortium company' (ICTA88/S413 (2)). See CTM80590 for a diagram showing the meaning of this term.

In some circumstances it is possible that the losses etc. of a group/consortium company could be surrendered as group relief to a group company as well as consortium relief under a consortium claim.

ICTA88/S405 restricts relief in these circumstances. The legislation works by reducing the amount available for surrender under a consortium claim by the amount of any potential group claims - Section 405 (1). Note that it is not necessary for any group claim to be actually made. The potential for such a claim or claims is sufficient to trigger the restriction.

The amount of potential group claims is:

• the maximum amount that could be claimed from the group/consortium companies by companies grouped with it after’
• taking account of any group claims that have actually been made in respect of the losses etc. of group companies other than the group/consortium company concerned.

See the note at the end of the example at CTM80675.

Where the claimant is a group/consortium company see CTM80585.