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HMRC internal manual

Company Taxation Manual

Consortia: group relief: claims: rules limiting

CTA10/Ss138 to 149

There are a number of rules whose effect is to limit the amount of consortium relief claimed.

  • The general group relief rules about apportionment of amounts to overlapping periods in CTA10/Ss138 to 142 also apply to consortium claims (CTM80215).
  • CTA10/Ss143 and 144, broadly, limit the amounts that can be surrendered and claimed by reference to four ownership proportions of the surrendering or claimant company. See CTM80540 (claimant is a ‘member of the consortium’) and CTM80545 (claimant is ‘company owned by a consortium’) for more guidance on Ss143 and 144 respectively.
  • CTA10/S147 governs the amount of relief in a case where trade loss relief under CTA10/S37 may also be claimed by a company owned by a consortium in the period (CTM80570 and CTM80585).
  • CTA10/Ss148 and 149 govern the amount of relief in a case where group relief may be available from a fellow group member in addition to consortium relief (CTM80580 and CTM80585).
  • CTA10/Ss145 and 146 put limits on the amount that can be claimed or surrendered by a company in the same group as a member of the consortium (CTM80555 and CTM80560).
  • For claims for accouting periods beginning on or after 12 July 2010, CTA10/Ss146A and 146B halve the amount of relief available where arrangements are in place to prevent the member of the consortium from controlling the company owned by the consortium, and the main purpose, or one of the main purposes of the arrangements is to enable the member of the consortium to gain a tax advantage (see CTM80587 and CTM80588).
  • CTA10/S137(7) deals generally with the exclusion of double allowances (CTM80405).