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CTA10/S99(1)(e), CTA10/S102, CTA10/S105

A loss from a UK property business can be surrendered and claimed as group relief (CTM80105 and PIM4240). A UK property business loss means a loss made in a UK property business in the surrender period � CTA10/S102(1). CTA10/S102(2) provides that it does not include a loss brought forward but treated as made in the surrender period as a result of CTA10/S62(5). However, property business losses arising after 1 April 2017 that are carried forward may be relieved as group relief for carried forward losses (CTA10/Part 5A) (CTM82000).

A loss from a UK property business is a ‘relevant amount� for the group relief provisions, so can only be surrendered to the extent that the total of the surrendering company’s relevant amounts exceeds the ‘profit-related threshold� (or ‘gross profit� in surrendering periods ended before 20 March 2013; see CTA10/S105, CTM80142). This is the case regardless of whether the surrendering company uses any of the relevant amounts against its own profits.

»Ê¹ÚÌåÓýapp calculation will need to take into account the prescribed order of surrender of relevant amounts (see CTM80143).

A non-commercial property loss is not eligible for relief under the loss relief rules. CTA10/S99(2) prevents the surrender of losses that are “not eligible for Corporation Tax relief�. So non-commercial property losses cannot be surrendered as group relief as they are excluded under CTA10/S64.