What are the conditions for surrender of trading losses?
If a company is a member of a 75% group, it can surrender, and receive, current (but not carried forward) trading losses (including excess management expenses, excess rental capital allowances, and excess charges) to other members. If a company’s ordinary share capital is jointly owned as to 75% or more by a consortium, it can surrender such a trading loss to the consortium members.
The group members and consortium members may be resident in an EU State, but the surrendering company must be within the charge to corporation tax, i.e, tax resident Ireland.
If a company is claiming group relief, its accounting period and that of the surrendering company should ideally match. if the accounting periods do not exactly coincide, the claimant company is allowed group relief for the “overlap” part of the loss.
The claimant and the surrendering company must also meet the group (or consortium) ownership conditions during the whole of the accounting period.