Corporation Tax Act 2010 section 149

Conditions 1 and 3: claimant company in group of companies

Section 149 restricts consortium group relief claims where the claimant company is also a member of a group of companies, by requiring the claimant's available profits to be reduced by the amount of group relief potentially available within its own group.

• Applies when a consortium-owned claimant company (or a company claiming via a link company) is also a member of a group of companies
• The claimant company's available total profits for the claim period are reduced (but not below nil) by the group's potential relief — i.e. the maximum group relief the claimant could claim within its own group
• Before calculating this maximum group relief, any group relief claims already made by other members of the same group in respect of losses surrendered within that group must be taken into account
• The effect is to treat the consortium-owned company and its fellow group members as a single unit, ensuring intra-group relief is prioritised before consortium relief is given