Taxes Consolidation Act 1997 section 411

Surrender of relief between members of groups and consortia

Section 411 establishes the framework for group relief, enabling companies within a group or consortium to surrender unused trading losses and other reliefs to other members of the same group or consortium.

• Two companies are in the same group for group relief purposes where one is a 75% subsidiary of the other, or both are 75% subsidiaries of a common parent resident in a relevant territory; a company is owned by a consortium where five or fewer companies directly and beneficially own 75% or more of its ordinary share capital.
• A surrendering company may transfer its unused trading losses and other eligible reliefs to a claimant company within the same group, which may then offset those amounts against its own taxable profits; two or more claimant companies may share in the same surrendered relief.
• Foreign losses may also be surrendered, but only in limited circumstances: the surrendering company must be resident in a relevant Member State (other than Ireland), must be a 75% subsidiary of the claimant company, and the claimant company must be resident in Ireland.
• Consortium relief broadly mirrors group relief but is available where the surrendering company is a trading company (or a holding company) owned by the consortium and is not a 75% subsidiary of any other company; any payment made by a claimant company to a surrendering company for group or consortium relief is ignored for corporation tax purposes.

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