CFM32090 | Loan relationships: non-trading deficits: group relief

Group and consortium relief claims

Companies can transfer losses and certain deficits to companies in the same group relationship by means of group or consortium relief.

In particular a group relief or consortium claim can be made under:

• CTA09/PT5 in respect of deficits from the current period

• CTA10/PT5A in respect of carried forward losses (post-2017 losses only)

A group or consortium relief claim falls under the general rules for group and consortium relief in CTA10/PT5. See CTM80000 for guidance on groups and consortia.

Restriction of consortium relief

In some circumstances there is a restriction to debits for bad debts or impairment losses where a company has had consortium relief. There may also be a restriction on the amount of the group relief that a company can claim if it has already had bad debt debits or impairment losses, in earlier years from a loan relationship with the consortium member surrendering group relief. There are details at CFM34000.

Group relief

There is no similar restriction on group relief arising in a group situation, as group companies cannot have impairment losses relief because they are connected (CFM35000).