Group relief—types of losses that can be surrendered
Group relief—types of losses that can be surrendered

The following Tax guidance note provides comprehensive and up to date legal information covering:

  • Group relief—types of losses that can be surrendered
  • Trading loss
  • Capital allowance excess
  • Non-trading loan relationship deficits
  • Qualifying charitable donations
  • UK property business loss
  • Management expenses
  • Non-trading intangible fixed asset loss
  • Qualifying expenditure on grassroots sports
  • Restrictions on use of losses for group relief
  • more

A company can surrender by way of group relief:

  1. a trading loss

  2. a capital allowance excess

  3. a non-trading loan relationship deficit

  4. qualifying charitable donations

  5. a UK property business loss

  6. management expenses

  7. a non-trading intangible fixed asset loss, and

  8. amounts allowable as qualifying expenditure on grassroots sports (from 1 April 2017)

These amounts, further defined and explained in this Practice Note, are only available for surrender by way of group relief if they would be eligible for corporation tax relief for the company surrendering the losses under another provision, ie if the loss would not be deductible in the company that incurs the loss (assuming that company had profits to deduct the loss from), it is not available for surrender as group relief.

The losses surrendered by way of group relief are set against the claimant company's total profits for the claim period.

The Finance (No 2) Act 2017 (F(No 2)A 2017) introduced provisions reforming the rules on what companies can do with carried-forward corporation tax losses. The provisions include a new group relief for carried forward losses in respect of losses arising on or after 1 April 2017. Carried forward losses arising before 1 April 2017 cannot benefit from this relief. This Practice Note only deals with group relief for current year losses. For more on group relief for carried forward losses, see Practice