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CTM80520 | Consortia: group relief: claims: consent to be given

From HM Revenue & Customs · Company Taxation Manual

CTA10/S97(9), FA98/Schedule 18/Paragraph 70(2)

When any one of the members of a consortium (or a company in the same group as a member of a consortium) makes a claim to consortium relief, there must be consent to the claim by all the members of the consortium as well as the company owned by the consortium. Consent from the members of the consortium must also be given where the surrender is to the company owned by a consortium (CTM80515)

A 'member of the consortium' is a company that beneficially owns at least 5% of the ordinary share capital (CTM80530). The example that follows is about consent.

Example

The diagram shows the ownership structure of Company Z: A (40%), B (15%), C (15%), D (15%), E (5%), F (4%), G (6%). G is a partnership between H and J, each owning 50% of G, so each indirectly owns 3% of Z.

Company Z has 100 ordinary £1 shares. The ownership of these shares is as follows:

  • Company A owns 40 shares (40%).

  • Company B owns 15 shares (15%).

  • Company C owns 15 shares (15%).

  • Company D owns 15 shares (15%).

  • Company E owns 5 shares (5%).

  • Company F owns 4 shares (4%).

  • Partnership G owns 6 shares (6%). Partnership G is an equal partnership between Company H and Company J, so each indirectly owns 3% of Company Z.

For consortium relief purposes:

Any claim by Company A in respect of Company Z’s loss or other amount requires the consent of Companies A, B, C, D, and E, but not Company F or Partnership G (or its partners).