The group relief rules for companies will be modernised to allow groups and
consortia to be established through companies resident anywhere in the world. The changes are intended to respond to the increasing globalisation of business and will give multinational groups of companies greater flexibility in structuring their commercial activities in the UK.
The changes will take effect from 1 April 2000. Group relief will also be extended from that date to UK branches of overseas companies. From the same date it will be possible to establish a group or consortium for group relief purposes through a company resident anywhere in the world.