Group relief is a tax mechanism allowing companies within a 75% ownership group to transfer qualifying losses to other group companies, thus optimizing their overall tax position. From April 1, 2000, group members no longer have to be resident in the UK to qualify for this relief.
A formal letter written by a parent company to a lender, acknowledging its relationship with another group company and its awareness of a loan being made to that company. It is the weakest form of a letter of comfort.
An agreement between the parties involved to offset one debt against another or one loss against a gain. Commonly used in banking to balance credit and debit balances across different accounts.
