A company could not validly surrender group relief as it had ceased to be a member of the same group as the claimant company for group relief purposes upon the appointment of receivers of the surrendering company.
The appellants (‘Farnborough’) appealed to the First-tier Tribunal (FTT) against decisions by HM Revenue and Customs (HMRC) to disallow Farnborough’s claims for group relief (under CTA 2010, s 154) of some £10.5 million from Piccadilly Hotels 2 Limited (PH2L) for the accounting period ending 31 May 2012. Farnborough and PH2L were both at least 75% subsidiaries of another company (KL) for the purposes of CTA 2010, s 152.
The FTT held ([2016] UKFTT 431) that PH2L ceased to be a member of the same group of companies as Farnborough in the relevant accounting period because (under s 154) the appointment of a receiver over PH2L constituted arrangements, which had the effect that the
