One group of people run a sport association and trades with the public 3 times a year to generate income. The same group of people decided to start another trade all for the cause of the future survival of their group. The second business trades with the public. One trade is making a loss but the other a profit. Is group relief available? Can I offset a loss brought forward in trade A against the current year profit in trade B?
Thanks
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Is there one association or two?
One association carrying on two businesses can offset the losses. Two associations can't because the group relief relationship depends on shareholdings. How are these arrangements constituted?
If it's the same association, it may be arguable that trade 2 is an extension of trade 1, giving the best of all worlds. Unfortunately you haven't given enough information.
That's right...
... any body within the charge to Corporation Tax who has two trades can only make a current set-off of its losses in one of its trades against the rest of its total profits.
What group relief does is allow two companies in the same group to set current losses between the companies. However, one must be a 75% subsidiary of the other or both must be 75% subsidiaries of a third body corporate. The definition of 75% subsidiary hinges on ordinary share capital.
In your case, you could try arguing that both activities are components of the same single trade.
Otherwise you'll have two trades and can only set losses off in the current period, as you say.