CTM80585 | Consortia: group relief: group and consortium claims both possible: claimant company is both owned by a consortium and a member of a group
From HM Revenue & Customs · Company Taxation Manual
applies where the company owned by the consortium is also a member of a group, and claims losses, etc,
Under consortium condition 1 from members of the consortium, or
Under consortium condition 3 from companies in the same group as a member of the consortium.
As well as the restriction on the amount of losses etc. that a company owned by a consortium can surrender as consortium relief (), there is also a restriction on the amount of consortium relief that a company owned by a consortium can claim if it could also potentially claim group relief under a group relationship.
The legislation works works by:
limiting the total profits of the company owned by the consortium against which consortium relief can be claimed (),
to the amount that exceeds any group relief that it could potentially claim from group companies (),
after taking into account of any group claims actually made by other companies in the same group as the company owned by the consortium ().
This restriction should be carried out before applying the ownership proportion to the company’s total profits under .
See the examples at and .
Note also that:
where a company claims consortium or group relief, and
it also has other amounts eligible for relief, such as trading losses available for claim under ,
which are not reliefs from a later accounting period,
these potential or actual reliefs must also be taken account of in working out its total profits against which a consortium claim can be made. This is because those total profits are calculated net of current period reliefs under ().
Where the surrendering company is both a company owned by a consortium and a member of a group see .