2 min read
Definition
Group relief is a corporation tax provision allowing a company that makes a loss to surrender it to another company in the same 75% group, which can set it against its own taxable profits, reducing the group's combined corporation tax.
In plain terms
If one group company loses money while another profits, the loss can shelter the profit — so the group as a whole pays less tax.
Why it matters for your company
Group relief is one reason group structures can be tax-efficient, alongside how funding is arranged. See group company borrowing.
Related reading
Group company borrowing explained
Borrowing inside a group structure raises questions a single company never faces: which entity borrows,…
Read →
Holding company
A holding company owns shares in one or more other companies rather than trading itself — a structure used to…
Read →Corporation tax explained for company directors
Corporation tax is the charge on your company's profits — and like VAT, it lands as a lump sum on a fixed…
Read →VAT bad debt relief
VAT bad debt relief lets you reclaim VAT paid on a sale the customer never paid — once the debt is six months…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.