For over 30 years Richard Edwards Group has been providing excellent advice and a first class service to our clients. We have a large portfolio of clients and service businesses across many sectors. Book one of our FREE INITIAL MEETINGS to start benefiting from our expertise today.

What can be transferred between group members?

Source: HM Revenue & Customs | | 11/11/2021

Corporation Tax relief may be available when a company or organisation makes a trading loss. Companies that are eligible for group relief can transfer losses and certain other deficits to companies within the same group by means of Group or Consortium Relief. The use of group relief allows losses arising in the accounting period to be surrendered to a group company for that period. 

Companies attempting to either surrender or claim losses for Group Relief or Group Relief for carried forward losses, must meet the required conditions. For companies to be members of the same group, one company must be a 75% subsidiary of the other, or both must be 75% subsidiaries of a third company. The definition of ‘75% subsidiary’ requires one company to have direct or indirect beneficial ownership of at least 75% of the ordinary share capital in another. There are also further qualifying tests that may apply for group relief purposes, and this can be a complex area. 

Under Section 99 - Corporation tax Act 2010 the following losses (when qualifying) can be surrendered and claimed as group relief:

  • a trading loss 
  • a capital allowances excess 
  • non-trading deficit on loan relationship 
  • amounts allowable as qualifying charitable donations 
  • a UK property business loss 
  • management expenses 
  • a non-trading loss on intangible fixed assets 


 

Latest News

New warnings from HMRC re tax fraudsters
25/11/2021 - More...
Fraudsters are continuing to target taxpayers with scam emails in advance of the 31 January 2022 deadline for submission of Self-Assessment returns. In fact, over the last year,

Teesside Freeport open for business
25/11/2021 - More...
The first of the English Freeports, Teesside, opened operations on 19 November 2021, and is expected to be followed shortly by Thames and Humber. The Teesside Freeport will be at


Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login