Loan relationships: non-trading deficits: group relief
Group and consortium relief claims
A group or consortium relief claim falls under the general rules for group and consortium relief in ICTA88/S402 - 411, with details of how to make a claim in FA98/SCH18/PARA66 to 76 - see CTM97600.
Restriction of consortium relief
In some circumstances there is a restriction to debits for bad debts, or impairment losses for accounting periods starting on or after 1 January 2005, where a company has had consortium relief. There may also be a restriction on the amount of the group relief that a company can claim if it has already had bad debt debits, or impairment loss, in earlier years from a loan relationship with the consortium member surrendering group relief. There are details at CFM34000.
There’s no similar restriction on group relief arising in a group situation, as group companies cannot have bad debt relief, or impairment losses for accounting periods starting on or after 1 January 2005, because they are connected (CFM35000).