364Introduction to ChapterU.K.
(1)This Chapter applies if—
(a)there is (or was) a relevant consortium creditor relationship (see subsection (2)), and
(b)either—
(i)an impairment loss is or has been brought into account for the purposes of this Part for any group accounting period by the creditor, or
(ii)a debit in respect of a release of liability under the relationship is or has been so brought into account.
(2)For the purposes of this Chapter a relationship is a relevant consortium creditor relationship if—
(a)it is a creditor relationship of—
(i)a company (the “member company”), which is a member of a consortium by which a consortium company is owned, or
(ii)a company (a “group member”) which is a member of the same group of companies as the member company but is not itself a member of the consortium, and
(b)the consortium company or, if that company is a holding company, a consortium company which is a subsidiary of that company is (or was) the debtor (the “debtor consortium company”).
(3)The provisions of this Chapter—
(a)reduce debits for impairment losses and release debits under relevant consortium creditor relationships where an amount surrendered as group relief by the consortium company is claimed by a member company or group member (see section 365),
(b)provide for a corresponding reduction in credits in respect of such relationships where a reduction within paragraph (a) has occurred (see section 367),
(c)reduce claims for group relief where debits within paragraph (a) for earlier group accounting periods exceed reductions within paragraph (b) (see section 368), and
(d)provide for such claims to be carried forward where they exceed such debits (see section 369).
(4)In this Chapter “release debit” means a debit in respect of a release of liability under a relevant consortium creditor relationship[F1, and
“group relief” means—
group relief under Part 5 of CTA 2010 (see section 97(2) of that Act), and
group relief for carried-forward losses under Part 5A of CTA 2010 (see section 188AA(4) of that Act).]
(5)If [F2section 143[F3, 144 or 188DH] of CTA 2010 (which limit the amount of group relief to be given in certain cases involving a consortium)] applies, effect must be given to that section before effect is given to this Chapter.
(6)Expressions defined in this section have the same meaning in the other provisions of this Chapter, and sections 370 and 371 also apply for the interpretation of this Chapter.
(7)For the meaning of “impairment loss” see section 476(1).
Textual Amendments
F1Words in s. 364(4) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 130(2)
F2Words in s. 364(5) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 608 (with Sch. 2)
F3Words in s. 364(5) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 130(3)