Let’s form a group
KEY POINTS
- Understanding the relationships of companies within a group is important to maximising exam marks.
- Understanding whether companies are related will enable the corporation tax payment dates to be determined.
- Companies owning at least 75% of others can surrender certain losses within the group.
- Consortium companies can also surrender losses but restrictions apply.
- For a gains group a company must be an immediate 75% subsidiary but the effective interest can be less.
Groups are an important part of ATT Paper 4. In fact although I am not on intimate terms with the examiners I would say that a long question from them is almost guaranteed in the real exam not to mention short form questions (SFQs). Unless students are prepared to forfeit 20 or more...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.