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HMRC internal manual

Business Income Manual

Private Finance Initiative (PFI): group relief

S130, S132, S133, S185 Corporation Tax Act 2010

In many PFI projects the private sector operator is a consortium company. That is:

  1. a directly held company owned by the consortium members, or
  2. a company owned 90% by a holding company owned by the consortium members.

Where losses arise in a consortium company, group relief will be available where the consortium company is a ‘trading company’, that is ‘a company the business of which consists wholly or mainly in the carrying on of a trade’. See BIM64400.

If a consortium company is a trading company, any trading losses, UK property business losses and certain other losses are capable of being surrendered as consortium relief assuming that all the other relevant conditions are met.

For guidance on group relief generally, see CTM80100 onwards.