D2.230 Consortium relief for current year losses—basic calculation
Consortium relief is a form of group relief available to companies within a consortium, provided they meet the requirements to either be a consortium company or a member of the consortium (see D2.207).
The same types of losses that can be surrendered on a group claim to group relief can also be surrendered on a consortium claim (see D2.215 for the types of eligible losses).
Also, the provisions relating to overlapping accounting periods applicable to group relief (see D2.216) also apply in a similar way to the calculation of consortium relief (see D2.231).
However, there is an additional restriction on the amount of trade losses that can be surrendered by a company owned by a consortium.
Trade losses can only be surrendered by a company owned by a consortium to the extent that they could not be claimed by that company under CTA 2010, s 37 against its own total profits for that period, regardless of whether such a set off is claimed or not.
Calculation of maximum consortium relief
The calculation of the amount eligible for relief depends upon whether it is the claimant or surrendering company that is the consortium member, as follows.
Claimant company as consortium member
Where the claimant company is a member of a consortium, the amount of the loss which may be claimed is the lower of the1: