Corporation Tax Act 2010 section 144

Condition 1: claimant company owned by consortium

Section 144 limits the amount of group relief a consortium-owned company can claim from a surrendering consortium member, based on that member's ownership proportion.

• Where a company owned by a consortium claims group relief under consortium condition 1, the relief is capped at the surrendering member's ownership proportion of the claimant's available total profits for the overlapping period.
• The ownership proportion is the lowest of four measures: the surrendering company's share of ordinary share capital, its entitlement to distributable profits, its entitlement to assets on a winding up, and its direct voting power in the claimant company.
• These proportions are measured during the overlapping period, and if any proportion changes during that period, a time-weighted average is used.
• Where the consortium owns the claimant company indirectly through a holding company, the ownership proportions are calculated by reference to the surrendering company's interest in the holding company rather than the claimant company itself.