Chapter 17 - Groups of companies

Question 1

Group relief is available to members of what kind of group?

Answer 1

Members of a 75% group relief group

Question 2

How does group relief work?

Answer 2

Losses of one member company can be surrendered to the other companies

Question 3

When are two companies members of a 75% group relief group?

Answer 3

– one company is the 75% subsidiary of the other, or

– both companies are 75% subsidiaries of a third company.

Question 4

A loss may be surrendered by any member company to any other member of the same group, provided they are what?

Answer 4

UK resident

Question 5

What kind of losses can be surrendered between 75% group relief groups?

Answer 5

• Trading losses (current period, brought forward against trading losses)
• Unrelieved QCD
• Property business losses (CP CF)

Question 6

What is surrendered first, unrelieved QCD or unrelieved property business loss?

Answer 6

QCD

Question 7

What type of loss cannot be surrendered?

Answer 7

Capital loss

Question 8

When must a claim for group relief be made by?

Answer 8

Within two years of its accounting period.

Question 9

What does a claimant company require from the surrendering company to make a claim?

Answer 9

Notice of consent

Question 10

How much can a company claim?

Answer 10

Lower of

• Loss of the surrendering company in the AP
• TTP of the claimant in the AP

Question 11

How much interest must the parent company on all companies have for a capital gains group?

Answer 11

Over 50%

Question 12

When can group rollover relief be used?

Answer 12

When buying another asset

Question 13

Can QCD be surrendered along with trading losses?

Answer 13

Yes