Corporation Tax Act 2010 section 145

Conditions 2 and 3: limitations in sections 143 and 144

Section 145 explains how the normal consortium group relief limitations apply when a "link company" is involved — that is, where the claim is based on consortium condition 2 or consortium condition 3.

• This section applies where a group relief claim is made under consortium condition 2 (surrendering company owned by consortium, claimant in same group as link company) or consortium condition 3 (claimant company owned by consortium, surrendering company in same group as link company).
• For consortium condition 2 claims, the section 143(2) limitation applies, but references to the claimant company in section 143(3) are read as references to the link company — so the "applicable proportion" of surrenderable amounts is based on the link company's ownership interest in the consortium-owned company.
• For consortium condition 3 claims, the section 144(2) limitation applies, but references to the surrendering company in section 144(3) are read as references to the link company — so the "applicable proportion" of the claimant's profits is based on the link company's ownership interest in the consortium-owned company.
• In both cases, the overlapping period used to calculate relief is still determined by reference to the accounting periods of the actual claimant and the actual surrendering company, not the link company.