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Specific anti-avoidance provisions can apply that limit the amount of relief that is available on a consortium claim. Broadly, the aim of the rules is to prevent the following situations:

1. Ìý

   •ÌýÌýÌýÌý losses of companies owned by consortia from being sold

2. Ìý

   •ÌýÌýÌýÌý a member of a consortium joining a consortium merely to sell its, or its fellow group company's losses

Essentially, where arrangements have been put in place the effect of which is to prevent a member or members of a consortium from controlling the consortium company in situations where they would otherwise hold control, for example by holding the greater part of voting power, then the surrenderable amount is deemed to be half of what it would otherwise be¹.

Arrangements are only deemed to exist where the main purpose or one of the main purposes is to obtain a tax advantage relating to group relief².

The provisions apply where³:

1. Ìý

   •ÌýÌýÌýÌý the surrendering company is owned by a consortium, including the situation in which the consortium