Loss of ability to surrender group relief during sale negotiations

In transactions where a target is being sold out of an existing group, it is important to advise a client as soon as possible that a selling group may not be able to continue to make group relief surrenders to or from the target until completion. Restrictions on the utility of group relief may arise from breaking the group relationship by the loss of beneficial ownership of shares in the target, or under CTA 2010 s 154 from the point ‘arrangements’ are in place for the target to be degrouped.