Making best use of a loss: groups and consortia

1. Member of a group?

1.1. 75% thresholds

1.1.1. Ordinary share capital

1.1.2. Assets available for distribution

1.1.3. Assets distributed on a winding up

1.2. Complexity of test ('equity holders')

1.3. Offending arrangements breaking group

2. Companies whose losses eligible for group relief surrender

2.1. UK resident companies

2.2. Non-resident companies with UK PE

2.3. EEA companies with non-UK losses (or non-EEA companies with EEA PE losses)

2.3.1. Losses exhausted

3. Consortium company?

3.1. Not 75% subsidiary

3.1.1. Owned as to 75%+ by companies each owning 5%+

3.2. 90%+ trading subsidiary of consortium company (as above)

3.3. 'Equity holders'/'arrangements' tests as with groups

4. Companies whose losses eligible for 'consortium relief' surrender

4.1. Consortium company

4.2. Members of the consortium

4.3. Companies grouped with member of the consortium

5. Types of loss eligible for surrender

5.1. Trading losses

5.2. Capital allowance excess; management expense; UK property business loss

5.3. Non-trading deficit on loan relationships; non-trading loss on intangibles

5.4. Miscellaneous others

5.5. Overseas equivalents

6. Payment for surrender of losses

6.1. Company law considerations

6.2. Include provision in JV documentation (consortia situations)

6.3. Protections if company sold out of group

7. Accounting period of surrender

7.1. Current year losses

7.2. Carried forward losses

7.2.1. Post-1 April 2017 loss only