In 1996 legislation was passed introducing group relief for losses incurred by companies in accounting periods ending after 1 January 1992. The relief is available for trading losses and for capital allowances normally made as a deduction in computing the profits of the trade by companies incorporated in Guernsey or by companies trading in Guernsey through a permanent establishment. Relief is available only where the companies concerned are members of the same group for the whole of the accounting period.

A group exists for these purposes where one company owns 90% or more of the issued share capital of the other, or where a third company or companies or an individual and/or spouse owns 90% or more of the issued share capital of two or more companies.

Claims must be made within two years of the end of the calendar year in which the relevant accounting period ends and require the consent of the surrendering company. Group relief can be claimed for accounting periods ending on or after 1 January 1992.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.