CTM82505 - Corporation Tax: Group relief for carried-forward losses: Consortia: General

CTA10/PART5A

From 1 April 2017, companies in a consortium can surrender certain types of carried-forward losses as group relief between consortium companies and members of that consortium, or companies in the same group as those members.

Companies can claim group relief for losses that have been carried forward from a previous accounting period. This only applies to losses that are incurred on or after 1 April 2017.

For losses incurred before 1 April 2017, companies can only claim group relief in a consortium for losses incurred in the same accounting period (CTA10/PART5) (CTM80500).

There are restrictions on the amount of relief that can be allowed as group relief for carried-forward losses. The total amount of relief a company can obtain using carried-forward losses is limited by the restriction on relevant deductions which applies to group relief for carried-forward losses as well as to the company’s own losses carried forward (CTM05010).

There are also some restrictions on the amount of carried-forward losses that a company can surrender, the unused part of the surrenderable amounts (CTM82120), and restrictions on the amount of profit a company has available for relief, the relevant maximum (CTM82140).

Many of the other rules that apply for group relief for carried-forward losses also apply to claims to relief for carried-forward losses made by consortia. The following apply to claims made by both groups and consortia:

  • Types of loss that may be surrendered (CTA10/S188BB) (CTM82020)
  • Restriction for losses that arise before 1 April 2017 (CTA10/S188BC) (CTM82030)
  • Restriction where an investment business has become small or negligible (CTA10/S188BD) (CTM82030)
  • Restriction when surrendering company could use loss itself (CTA10/S188BE) (CTM82030)
  • Restriction when surrendering company has no income generating assets (CTA10/S188BF) (CTM82030)
  • Restrictions for certain types of insurance company (CTA10/S188BG) (CTM82040)
  • Restriction when surrendering company is UK resident with overseas permanent establishment (CTA10/S188BH) (CTM82050)
  • Restriction when surrendering company is non-UK resident with UK permanent establishment (CTA10/S188BI) (CTM82050)
  • Restriction when surrendering company is dual resident (CTA10/S188BJ) (CTM82050)
  • Payment made for loss (CTA10/188FA) (CTM82170)
  • Joint amended returns (SI 2018/No 9) (CTM82180)