Corporation Tax Act 2010 section 146A

Conditions 1 and 2: surrendering company not controlled by claimant company etc.

Section 146A restricts consortium group relief claims where artificial arrangements are in place to prevent a claimant company (or link company) from controlling the surrendering company, and those arrangements form part of a tax avoidance scheme.

• The section applies where arrangements enable a person to prevent the claimant company or link company, alone or with other consortium members, from controlling the surrendering company during the overlapping period
• The arrangements must be such that, without them, the claimant or link company (with other consortium members) would control the surrendering company
• The arrangements must form part of a scheme whose main purpose, or one of its main purposes, is to enable the claimant company to obtain a tax advantage
• Where the section applies, the surrenderable amount for the overlapping period is reduced to 50% of what it would otherwise be