Corporation Tax Act 2010 section 148

Conditions 1 and 2: surrendering company in group of companies

Section 148 restricts the amount of consortium relief available where the surrendering company is also a member of a group, by reducing surrenderable amounts to reflect what could have been relieved within the group itself.

• Where a consortium-owned company that surrenders losses is also part of a group, its surrenderable amounts for consortium relief purposes are reduced by the group's potential relief — that is, the maximum group relief that could theoretically be claimed within the group.
• This restriction applies under both consortium condition 1 (no link company involved) and consortium condition 2 (where a link company connects the surrendering company to the consortium).
• The group's potential relief is calculated by assuming that every possible group relief claim within the group is made to the maximum extent, effectively treating the consortium-owned company and its fellow group members as a single unit for this purpose.
• When calculating the group's potential relief, any group relief claims already made by other members of the same group (excluding the surrendering company itself) must be taken into account first, so that the reduction reflects the remaining capacity within the group.