Group tax minimisation using losses
You'll learn how to strategically allocate losses across a group structure to minimise corporation tax liability. This lesson covers the three-tier corporation tax system, the order in which to apply losses to different companies (prioritising those in the marginal relief band at 26.5%), and practical techniques like
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In this lesson
- 0:00 Tax planning overview and five key strategies
- 0:27 Minimising group tax through loss transfer
- 0:37 Understanding corporation tax rates and marginal relief
- 1:18 Allocating losses to marginal rate companies
- 1:39 Optimising loss allocation across the group
- 2:39 Preventing instalment payments and capital losses
About this lesson
preventing instalment payments and matching capital losses to gains. Understanding loss allocation is essential for the ATX paper and reflects real-world tax planning decisions that protect group profitability. The video walks through why early period loss relief, whilst offering cash flow benefits, may not be optimal given current tax rates, and explains the mechanics of marginal relief relief to help you see why companies taxed at the marginal rate should receive losses first. You'll also discover how to reallocate current year capital losses and gains across group members to eliminate unnecessary tax charges. This is core material for advanced tax planning and demonstrates the kind of strategic thinking examiners expect in case study scenarios.
Duration: 3m
Transcript
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