TaxCorporate TaxBudget 2010: Consortium relief extended

Budget 2010: Consortium relief extended

Tax relief rules relaxed to encourage European joint ventures

The UK government has relaxed tax relief rules on consortia in an effort to
encourage UK companies to form joint ventures in Europe.

Under the revised rule announced in today’s Budget, companies based in the
European Union and European Economic Area will be able to offset losses from a
joint venture against profit elsewhere in their company, if they are able to
establish a clear link between the two parties.

The amount of a loss that a company can write off should be in proportion to
its share of investment in the joint venture.

Previously, consortia could only qualify for relief if they could show a link
between the two parties through the UK.

David Norton, tax partner at Deloitte, said that consortium relief was often
used by technology, chemical and retail companies.

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

2m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

2m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson