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Group Loss relief - can you surrender losses b/fwd

Group Loss relief - can you surrender losses b/fwd

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Please can anyone help me with this matter as my group relief knowledge is limited and HMRC notes are appauling.

I have a parent company (owns 80% of the subsidiary) with current year losses of £9.5k and losses brought forward of £19k, the subsidiary has profits chargeable to CT of £26k.  I know I can offset the £9.5k of current year losses against current year profit of the subsiduiary but can I offset the £19k carried forward from previous accounting periods.

Any help would be gratefully received. Thanks Lucy x

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By Mary Weiller
14th Jan 2012 16:17

As far as I know, you cannot surrender losses brought forward. You can only use that against future profits of the parent

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By Ding Dong
14th Jan 2012 16:42

If the trade is the same

and your parent habitually charges management charges to it's subsidiary and is not doing so in this case "just to use losses"

There is no reason why the management charge level from parent to subsidiary could not be reconsidered (justifiably only) which could potentially utilise the losses brought forward


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Replying to lionofludesch:
By juicy lucy
14th Jan 2012 18:47

Thanks Ding Dong, what a great idea.  Why didn't I think of that? Blonde moment I think, thanks again. Lucy x

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