Corporation Tax Act 2009 section 364

Introduction to Chapter

Section 364 introduces the Chapter dealing with the interaction between consortium creditor relationships and group relief, specifically where impairment losses or release debits arise on loans to consortium companies.

• The Chapter applies where a creditor relationship exists between a consortium member (or a company in the same group as a consortium member) and a consortium company, and an impairment loss or release debit has been recognised
• Debits for impairment losses and debt releases are reduced where the consortium company has surrendered group relief to the creditor or a group member of the creditor
• Corresponding reductions apply to any credits subsequently recognised on those same relationships, and group relief claims may be reduced or carried forward depending on the cumulative position of earlier debits and reductions
• Any group relief limitations under consortium rules in the Corporation Tax Act 2010 must be applied before the provisions of this Chapter take effect