C1C2C3C4Part 5Group relief

Annotations:
Modifications etc. (not altering text)
C1

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)

C2

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)

C3

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)))

C4

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

C3Chapter 4Claims for group relief

Limitations on group relief if claim based on consortium condition 1, 2 or 3

146Conditions 2 and 3: companies in link company's group

1

If the claimant company makes a claim for group relief based on consortium condition 2, the amount of group relief to be given on the claim is limited by subsections (2) and (3).

2

There is a limit on the amount of group relief that can be given, in total, on consortium claims made by the link company and group companies in relation to the surrendering company's surrenderable amounts for the surrender period.

3

That limit is the maximum amount of group relief that could be given to the link company in relation to those amounts on consortium claims—

a

assuming that no consortium claims in relation to those amounts were made by group companies based on consortium condition 2, F1...

F2aa

assuming that the link company was UK related, and

b

ignoring any lack of profits of the link company from which deductions could be made as mentioned in section 137(1).

4

If the claimant company makes a claim for group relief based on consortium condition 3, the amount of group relief to be given on the claim is limited by subsections (5) to (7).

5

There is a limit on the amount of group relief that can be given, in total, to the claimant company for the claim period on consortium claims made in relation to losses and other amounts surrendered by the link company and group companies.

6

That limit is the same as the limit that, as a result of section 144(2), would apply for the purposes of a consortium claim made by the claimant company for the claim period in relation to losses or other amounts surrendered by the link companyF3, assuming that the link company was UK related.

7

In determining the limit that would apply as a result of section 144(2) it is to be assumed that the accounting period of the link company is the same as the accounting period of the claimant company.

8

In this section—

  • “consortium claim” means a claim for group relief based on consortium condition 1, consortium condition 2 or consortium condition 3, F4...

  • “group company”, for the purpose of determining in accordance with this section a limitation on the amount of group relief to be given on a claim based on consortium condition 2 or consortium condition 3, means a company that is a member of the same group of companies as the link company (other than the link company itself)F5, and

  • “UK related”, in relation to a company, has the meaning given by section 134.