Restriction on consortium claims where companies join or leave consortium

Orders of the Day — Finance Bill – in the House of Commons at 12:45 am on 10th July 1985.

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7.—(1) In any case where—

  1. (a) a consortium claim is made in respect of the loss or other amount of a relevant accounting period of a company owned by a consortium (in this paragraph that claim is referred to as "the primary claim", that company is referred to as "the principal surrendering company" and that accounting period is referred to as "the principal accounting period"), and
  2. (b) the company making the primary claim or, if that claim is made by virtue of paragraph 5 above, the company which is the link company for the purposes of that paragraph was not a member of the consortium throughout the whole of the principal accounting period, and
  3. (c) on or after the date on which the primary claim is made, a consortium claim is made which falls within sub-paragraph (2) below,
no relief shall be allowed on the primary claim, or, as the case may be, any relief which was so allowed shall be withdrawn.

(2) A consortium claim is to be taken into account under subparagraph (1)(c) above if—

  1. (a) it is in respect of the loss or other amount of an accounting period of a surrendering company (being a company owned by the consortium referred to in subparagraph (1) above); and
  2. (b) it is made by the company making the primary claim or, if that claim or the claim mentioned in this subparagraph is made by virtue of paragraph 5 above, by any other member of the group referred to in subparagraph (1) (a) of that paragraph; and
  3. (c) at any time during the principal accounting period the surrendering company is a member of the same group of companies as the principal surrendering company; and
  4. (d) the accounting period to which the claim relates falls, in whole or in part, within the principal accounting period.

(3) Where any relief which has been allowed is withdrawn by virtue of sub-paragraph (1) above, all such adjustments shall be made, whether by way of assessment or otherwise, as may he necessary in consequence of that withdrawal.

8.—(1) In any cases where—

  1. (a) a company owned by a consortium makes a consortium claim (in this paragraph referred to as "the primary claim") in respect of the loss or other amount of a relevant accounting period of a member of the consortium or, if the primary claim is made by virtue of paragraph 6 above, of a company which, in relation to that member of the consortium, is a group member, within the meaning of that paragraph, and
  2. (b) the member of the consortium concerned (whether as the surrendering company or the link company, within the meaning of paragraph 6 above) was not a member of the consortium throughout the whole of the relevant accounting period referred to in paragraph (a) above, and
  3. (c) on or after the date on which the primary claim is made, a consortium claim is made which falls within sub-paragraph (2) below,
no relief shall be allowed on the primary claim or, as the case may be, any relief which was so allowed shall be withdrawn.

(2) A consortium claim is to be taken into account under subparagraph (1) (c) above if—

  1. (a) it is made by a company owned by the consortium referred to in sub-paragraph (1) above; and
  2. (b) the company making the claim is a member of the same group of companies as the company making the primary claim; and
  3. (c) the claim relates to the loss or other amount of an accounting period of the consortium member referred to in sub-paragraph (1) above or of a company which, in relation to that consortium member, is a group member, within the meaning of paragraph 6 above; and
  4. (d) the accounting period referred to in paragraph (b) above falls, in whole or in whole or in part, in the relevant accounting period referred to in sub-paragraph (1)(a) above.

(3) Where any relief which has been allowed is withdrawn by virtue of sub-paragraph (1) above, all such adjustments shall be made, whether by way of assessment or otherwise, as may be necessary in consequence of that withdrawal.