Corporation Tax Act 2010 section 143

Condition 1: surrendering company owned by consortium

Section 143 limits the amount of group relief a consortium member can claim from a surrendering company that is owned by the consortium, by reference to the consortium member's ownership proportion.

• Group relief claimed by a consortium member from a consortium-owned surrendering company is capped at the member's ownership proportion of the surrenderable amount for the overlapping period
• The ownership proportion is the lowest of four measures: the member's share of ordinary share capital, entitlement to distributable profits, entitlement to assets on a winding up, and direct voting power in the surrendering company
• If any of these proportions changes during the overlapping period, a time-weighted average must be used
• Where the surrendering company is owned indirectly through a holding company, the ownership proportions are measured by reference to the holding company rather than the surrendering company itself