Corporation Tax Act 2010 section 188CF

Consortium condition 1

Section 188CF sets out the first of four consortium conditions that must be met for a company owned by a consortium to claim group relief for carried-forward losses from a consortium member.

• The claimant company must be a trading company or a holding company that is owned by a consortium, and the surrendering company must be a member of that consortium.
• Both the claimant company and the surrendering company must be UK related.
• The condition is blocked if the surrendering company would treat a profit on selling its shares in the claimant company (or the relevant holding company) as a trading receipt.
• Where the claimant company is owned by the consortium through a holding company arrangement, the share ownership test applies to shares in that holding company instead.