C1C2C4C5C6C7Part 5Group relief
Pt. 5 excluded (with effect in accordance with Sch. 18 para. 63 of the amending Act) by Finance Act 2016 (c. 24), Sch. 18 para. 20(5)
Pt. 5 modified by 2009 c. 4, s. 1218ZDB(2) (as inserted (for specified purposes and with effect in accordance with Sch. 6 paras. 20, 21(1)(a) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 6 para. 1 (with Sch. 6 para. 21(3)))
Pt. 5 modified (with effect in accordance with reg. 1(2) of the amending S.I.) by The Risk Transformation (Tax) Regulations 2017 (S.I. 2017/1271), regs. 1(1), 10, 11
Pt. 5 applied (with modifications) (24.2.2022) by Finance Act 2022 (c. 3), Sch. 2 para. 47(4)
Pt. 5 excluded (14.7.2022) by Energy (Oil and Gas) Profits Levy Act 2022 (c. 40), s. 1(5)(e) (with ss. 15(1), 16(1))
C4C6C7Chapter 4Claims for group relief
Surrenderable amounts under Chapter 2
130C4Group relief claims on amounts surrenderable under Chapter 2
1
This section applies in relation to the surrendering company's surrenderable amounts for the surrender period under Chapter 2.
C32
A company (“the claimant company”) may make a claim for group relief for an accounting period (“the claim period”) in relation to those amounts (in whole or in part) if the following requirements are met.
Requirement 1
The surrendering company consents to the claim.
Requirement 2
There is a period (“the overlapping period”) that is common to the claim period and the surrender period.
Requirement 3
At a time during the overlapping period—
3
More than one company may make a claim for group relief in relation to any surrenderable amounts (but the giving of group relief in relation to any claim is subject to the provisions of this Chapter).
131C4The group condition
1
The group condition is met if the surrendering company and the claimant company—
a
are members of the same group of companies (see section 152), and
b
are both UK related.
2
For the meaning of “UK related” in subsection (1)(b) and in sections 132 and 133, see section 134.
132C4Consortium condition 1
1
Consortium condition 1 is met if subsection (2) or (3) applies.
2
This subsection applies if—
a
the surrendering company is a trading company or a holding company,
b
the surrendering company is owned by a consortium,
c
the claimant company is a member of the consortium, and
d
both companies are UK related.
3
This subsection applies if—
a
the claimant company is a trading company or a holding company,
b
the claimant company is owned by a consortium,
c
the surrendering company is a member of the consortium, and
d
both companies are UK related.
4
But consortium condition 1 is not met if a profit on a sale within subsection (5) by the company that is the member of the consortium would be a trading receipt of the member.
5
A sale is within this subsection if it is a sale of—
a
the share capital the member owns in the company owned by the consortium, or
b
if that company is owned by the consortium as a result of section 153(3) (consortiums involving holding companies), the share capital the member owns in the holding company in question.
133C4Consortium conditions 2 and 3
1
Consortium condition 2 is met if—
a
the surrendering company is a trading company or a holding company,
b
the surrendering company is owned by a consortium,
c
the claimant company is not a member of the consortium,
d
the claimant company is a member of the same group of companies as a third company (“the link company”),
F10g
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2
Consortium condition 3 is met if—
a
the claimant company is a trading company or a holding company,
b
the claimant company is owned by a consortium,
c
the surrendering company is not a member of the consortium,
d
the surrendering company is a member of the same group of companies as a third company (“the link company”),
F12g
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3
But neither consortium condition 2 nor consortium condition 3 is met if a profit on a sale within subsection (4) by the link company would be a trading receipt of that company.
4
A sale is within this subsection if it is a sale of—
a
the share capital the link company owns in the company (“the consortium company”) owned by the consortium as mentioned in subsection (1)(b) or (2)(b), or
b
if the consortium company is owned by the consortium as a result of section 153(3) (consortiums involving holding companies), the share capital the link company owns in the holding company in question.
F135
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F136
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F137
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F138
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134Meaning of “UK related” company
For the purposes of sections 131 to 133 a company is UK related if—
a
it is a UK resident company, or
b
it is a non-UK resident company F15within the charge to corporation tax.
F14134AC4Companies “established in the EEA”
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pt. 5 applied (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 125 (with s. 147, Sch. 17)