Group relief call for CGT

Tax specialists this week lobbied the Inland Revenue to add group consolidation provisions into corporate capital gains tax.

The Chartered Institute of Taxation, together with Deloitte & Touche, called for offsets to allow companies to claim relief against capital gains losses on a group-wide basis.

Deloittes said the current system results in unnecessarily complicated arrangements to shift assets around a group to maximise relief. Instead, a form of group relief should be available, with tapering rates to reflect the total ownership period within the group.

Deloittes also demanded that capital losses be put on the same footing as trading losses, meaning that relief for capital losses could be carried back as well as forward.

While the proposals did focus on the specific Revenue CGT review, they have also added to the weight of argument in favour of consolidated group returns.

Recent changes, such as the promise of a new group payment facility for corporation tax, have moved the consolidated return idea up the Revenue’s agenda, say experts.

But Deloittes tax services partner David Cruickshank doubted any new reforms would emerge before the capital gains review is completed.

A Revenue spokesman said: ‘I’m sure there are rumours flying around at various levels, but we cannot report what ministers will look at next.’

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