Group relief (
CTM80100 onwards) is also available to
companies in a consortium relationship. There is a diagram showing
the meaning of various terms used in consortium claims to group
relief at
CTM80590.
From 1 April 2000, a company which:
can surrender the losses or other amounts as group relief,
subject to various conditions. The reference to such a company in
the guidance that follows is to 'the surrendering company'. Losses
and other items eligible for relief are set out in
CTM80110.
A company owned by a consortium can surrender the losses or
other amounts for set-off against the total profits of a claimant
company which is a member of the consortium.
Similarly, where the surrendering company is a member of a
consortium, it may surrender relief to a claimant company, which is
a trading company or holding company owned by the consortium.
Prior to 1 April 2000, both the claimant and the surrendering
company had to be resident in the UK. For transitional provisions
where an accounting period straddles 1 April 2000 see
CTM80370, and see Press Release PR27/99
where the existence of a consortium relationship depends on a
company resident in another Member State of the European Union or
European Economic Area.
There is guidance at
CTM41200 onwards on trade
associations.
