Losses can be surrendered between a UK company owned by a consortium and a UK group company of such consortium members, the relevant consortium member acting as the ‘link company’ between its wider group and the consortium. Current legislation only permits such surrenders where the link company is either UK resident or established in the EEA, and where established in the EEA all intermediate group companies must also be established in the EEA. Recent European case law indicates these restrictions are contrary to EU law and consequently it is proposed in FB 2015 that these location requirements are removed.
