CTM80150 | Groups: group relief: which companies may claim and surrender group relief?
From HM Revenue & Customs · Company Taxation Manual
, S, S, Chapter of Part 5 of CTA10
Prior to 1 April 2000
Both the claimant and surrendering companies had to be:
resident in the UK, and
members of the same group ().
All the companies forming a group relationship between the surrendering and claimant companies had to be resident in the UK.
From 1 April 2000 to 1 April 2006
Both the claimant and surrendering companies had to be:
within the charge to CT, that is they must either:
be resident in the UK, or
if not resident in the UK, carry on a trade in the UK through a permanent establishment,
and be
members of the same group ().
See onwards for guidance on group relief claims and surrenders by UK permanent establishments.
For accounting periods ending on or after 1 April 2000 group relationships can be formed by reference to companies resident anywhere in the world. For transitional rules on accounting periods spanning 1 April 2000 see .
From 1 April 2006
Both the claimant and surrendering companies must, under , be:
UK related, that is they must either:
be resident in the UK, or
if not resident in the UK, be within the charge to Corporation Tax. For example:
by carrying on a trade in the UK through a permanent establishment,
from 5 July 2016, having profits of a trade of dealing in or developing UK land,
from 6 April 2020, by carrying on a UK property business.
and be
members of the same group ().
The phrase “UK related” was adopted in and defined in S134.
In addition, under , the surrendering company may be resident in a European Economic Area territory, if certain conditions are satisfied ( onwards). For transitional rules on claims from other EEA territories in accounting periods spanning 1 April 2006 see .
For guidance on when companies are members of the same group see .