Group relief - part 3

In this lesson

1. 0:00 Group relief illustration and setup
2. 1:04 Determining which companies qualify for relief
3. 2:29 Calculating maximum group relief surrender
4. 3:03 Key factors and flexibility in group relief
5. 4:27 Strategic considerations for loss allocation
6. 5:25 Group relief question approach and methodology
7. 6:36 Maximising tax savings through loss allocation

About this lesson

Group relief allows profitable companies to claim losses surrendered by subsidiaries they own more than 75%, but only if those losses meet specific ownership and timing requirements. You'll work through the detailed mechanics: identifying which companies qualify, determining maximum surrender amounts when year ends differ, and understanding the crucial flexibility that lets you choose how much loss to surrender versus use against your own profits. This is essential for ATX and SBL, where group relief strategy can significantly impact your tax planning answer. The lesson covers the practical decision-making framework: how to preserve qualifying charitable donations that can't be carried forward, when to prioritise relieving profits taxed at the marginal rate of 26.5%, and how to sequence relief across companies paying different corporation tax rates. You'll see why group relief is more powerful than standard loss carry-back—it lets you ring-fence losses to protect your own reliefs rather than wiping them out. By the end, you'll be confident calculating maximum group relief claims, identifying which subsidiaries can and can't participate, and structuring relief to deliver genuine tax savings for the group.

Duration: 7m