Cap. 123 Art. 17Surrender of relief between members of groups.

(1) Subject to, and in accordance with, the provisions of this article and of articles 18 to 22, allowable losses may, in the case set out in sub-article (2), be surrendered by a company, hereinafter referred to as "the surrendering company", and, on the making of a claim by another company, hereinafter referred to as “the claimant company”, be allowed to the claimant company as a deduction called “group relief”. A claim made by virtue of this sub-article is hereinafter referred to as a “group claim”.

(2) Group relief shall be available where the surrendering company and the claimant company are both members of the same group throughout the year preceding the year of assessment for which the relief is claimed.

(3) For any year of assessment, two or more claimant companies may make group claims relating to the same surrendering company.

(4) A payment for group relief -

(a) shall not be taken into account in computing profits or losses of either company for the purposes of tax imposed by this Act; and

(b) shall not, for any of the purposes of this Act, be regarded as a distribution.

For the purposes of this sub-article "payment for group relief" means a payment made by the claimant company to the surrendering company in pursuance of an agreement between them in respect of an amount surrendered by way of group relief, being a payment not exceeding that amount.