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HMRC internal manual

Company Taxation Manual

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HM Revenue & Customs
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Groups: group relief: which companies may claim and surrender group relief?

CTA10/S131, S134, S136, Chapter 5 of Part 5 of CTA10

Prior to 1 April 2000

Both the claimant and surrendering companies had to be:

  • resident in the UK, and
  • members of the same group (CTM80151).

All the companies forming a group relationship between the surrendering and claimant companies had to be resident in the UK.

From 1 April 2000 to 1 April 2006

Both the claimant and surrendering companies had to be:

  • within the charge to CT, that is they must either:

 

  • be resident in the UK, or
  • if not resident in the UK, carry on a trade in the UK through a permanent establishment,

and be

See CTM80305 onwards for guidance on group relief claims and surrenders by UK permanent establishments.

For accounting periods ending on or after 1 April 2000 group relationships can be formed by reference to companies resident anywhere in the world.  For transitional rules on accounting periods spanning 1 April 2000 see CTM80370.

From 1 April 2006

Both the claimant and surrendering companies must, under CTA10/S131, be:

  • UK related, that is they must either:

 

  • be resident in the UK, or
  • if not resident in the UK, carry on a trade in the UK through a permanent establishment,

and be

The phrase “UK related” was adopted in CTA10 and defined in S134.

In addition, under Chapter 3 of Part 5 CTA10, the surrendering company may be resident in a European Economic Area territory, if certain conditions are satisfied (CTM81500 onwards).  For transitional rules on claims from other EEA territories in accounting periods spanning 1 April 2006 see CTM81506.

For guidance on when companies are members of the same group see CTM80151.