D2.205 Meaning of group for group relief purposes
Before the tax planning implications of the group relief provisions can be considered, it is first necessary to establish whether there is a group for the purposes of group relief.
For the definition of a consortium for consortium relief claims, see D2.208.
It should be noted at the outset that the provisions only apply to corporate ownership. Therefore losses cannot flow between individuals and companies under the group relief or consortium relief rules.
In addition, while non-resident companies can make up the group, they cannot typically benefit from a group relief claim unless they are within the charge to corporation tax. This is considered in further detail below.
What is a group for group relief purposes?
For group relief purposes for both current year and carried forward losses, two companies are regarded as members of the same group if1:
• one is a 75% subsidiary of the other, or
• both are 75% subsidiaries of a third company
For these purposes, one company (company B) is a 75% subsidiary of another company (company A) if all three