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group relief


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Relief available to companies within a 75% group as a result of which qualifying losses can be transferred to other group companies. The losses transferred are available to set against the other group members' profits chargeable to corporation tax, thus reducing the overall tax liability for the group. A 75% group, for group relief, exists if one company holds 75% or more of: the ordinary share capital, and the distributable income rights, and the rights to the net assets in a winding-up. From 1 April 2000 members of a group no longer have to be resident in the UK to qualify for relief. See also consortium relief.

the ordinary share capital, and

the distributable income rights, and

the rights to the net assets in a winding-up.

Subjects: Financial Institutions and Services — Accounting.


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