Consortium relief
In this lesson, you'll learn how to identify and apply consortium relief—a new Advanced Taxation topic that appears when multiple companies own a single company in a specific structure.
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In this lesson
- 0:00 Introduction to consortium relief
- 1:19 Consortium structure and ownership requirements
- 2:09 Loss relief mechanics for consortium companies
- 3:00 Key rules for loss surrender and offsetting
- 3:47 Worked example: Charm and Telco scenario
- 5:55 Common mistakes and exam tips
About this lesson
You'll discover that a consortium exists when each owner holds between 5% and 75% of a company, while collectively owning at least 75%, and how losses can be surrendered between consortium members based on their ownership percentage. Through worked examples, you'll master the key rule: the consortium company must offset its loss against its own profits first, then can surrender the remainder to members at the lower of their profit figure or their percentage share of the loss. This topic frequently catches students out because it looks like a group relief situation but requires different handling—learning to spot and apply consortium relief correctly will boost your exam performance in Advanced Taxation.
Duration: 6m
Transcript
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