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Trading Losses To Be Set Against Profits Before Group Relief

Volume 82: debated on Wednesday 10 July 1985

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4.—(1) Where a company owned by a consortium—

  • (a) has in any relevant accounting period incurred such a loss as is referred to in section 259(1) of the Taxes Act, and
  • (b) has profits (of whatever description) of that accounting period against which that loss could be set off under subsection (2) of section 177 of that Act,
  • the amount of that loss which is available to any member of the consortium on a consortium claim shall be determined on the assumption that the company owned by the consortium has made a claim under that subsection requiring the loss to be so set off.

    (2) Where the company referred to in sub-paragraph (1) above is a group/consortium company, the amount of the loss shall be determined under that sub-paragraph before any reduction is made under paragraph 2 above.