Taxation In Guernsey - Group Relief

In 1996 legislation was passed introducing group relief for losses incurred by companies in accounting periods ending after 1 January 1992. The relief is available for trading losses and for capital allowances normally made as a deduction in computing the profits of the trade by companies incorporated in Guernsey or by companies trading in Guernsey through a permanent establishment. Relief is available only where the companies concerned are members of the same group for the whole of the accounting period.

A group exists for these purposes where one company owns 90% or more of the issued share capital of the other, or where a third company or companies or an individual and/or spouse owns 90% or more of the issued share capital of two or more companies.