Part 5Group relief

Chapter 4Claims for group relief

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

149Conditions 1 and 3: claimant company in group of companies

1

This section applies if—

a

the claimant company makes a claim for group relief based on consortium condition 1,

b

it is the claimant company that is owned by the consortium, and

c

the claimant company is also a member of a group of companies.

2

This section also applies if—

a

the claimant company makes a claim for group relief based on consortium condition 3, and

b

the claimant company is a member of a group of companies.

3

No group relief is to be given on the claim (“the current claim”) unless the claimant company's total profits of the claim period exceed the group's potential relief.

4

If those total profits exceed the group's potential relief, the group relief to be given on the current claim is limited to the amount of the excess.

5

The group's potential relief is the maximum amount of group relief that could be claimed by the claimant company for the claim period on claims based on the group condition.

6

Before determining the maximum amount of potential group relief under subsection (5), take account of any claim made before the current claim that—

a

is a claim for group relief based on the group condition made by another member of the same group of companies as the claimant company, and

b

is in relation to losses or other amounts surrendered by a company that is also a member of that group.