Section 364 — Corporation Tax Act 2009: Introduction to Chapter

Introduction to Chapter 364 1 This Chapter applies if—

a there is (or was) a relevant consortium creditor relationship (see subsection (2)),

and b either—

i an impairment loss is or has been brought into account for the purposes of this Part for any group accounting period by the creditor, or ii a debit in respect of a release of liability under the relationship is or has been so brought into account.

2 For the purposes of this Chapter a relationship is a relevant consortium creditor relationship if—

a it is a creditor relationship of—

i a company (the “member company”), which is a member of a consortium by which a consortium company is owned, or ii a company (a “group member”) which is a member of the same group of companies as the member company but is not itself a member of the consortium, and b the consortium company or, if that company is a holding company, a consortium company which is a subsidiary of that company is (or was) the debtor (the “debtor consortium company”).

3 The provisions of this Chapter—

a reduce debits for impairment losses and release debits under relevant consortium creditor relationships where an amount surrendered as group relief by the consortium company is claimed by a member company or group member (see section 365),

b provide for a corresponding reduction in credits in respect of such relationships where a reduction within paragraph (a) has occurred (see section 367),

c reduce claims for group relief where debits within paragraph (a) for earlier group accounting periods exceed reductions within paragraph (b) (see section 368),

and d provide for such claims to be carried forward where they exceed such debits (see section 369).

4 In this Chapter “ release debit ” means a debit in respect of a release of liability under a relevant consortium creditor relationship , and “ group relief ” means— group relief under Part 5 of CTA 2010 (see section 97(2) of that Act), and group relief for carried-forward losses under Part 5A of CTA 2010 (see section 188AA(4) of that Act).

5 If section 143 , 144 or 188DH of CTA 2010 (which limit the amount of group relief to be given in certain cases involving a consortium) applies, effect must be given to that section before effect is given to this Chapter.

6 Expressions defined in this section have the same meaning in the other provisions of this Chapter, and sections 370 and 371 also apply for the interpretation of this Chapter.

7 For the meaning of “impairment loss” see section 476(1).