Group relief calculator, 2026/27

If you run more than one company under common ownership, group relief lets a loss in one company offset profit in another, cutting the group's overall corporation tax bill. Enter the loss and profit to see the saving.

The group relief calculator runs on the rates and thresholds HMRC has published for the 2026/27 tax year, so the figures you see reflect the position your company is actually filing on rather than a historic set of bands. Change any input and the result recalculates immediately, with no sign-up and nothing sent anywhere.

If you are a director of a UK limited company, use it as a first look before a decision rather than as the decision itself. Assumes both companies are UK resident and at least 75% commonly owned, so a 'group relief group' exists for the accounting periods concerned. Real company positions bring in other income, reliefs, group structures and prior year adjustments that a single page of inputs cannot see, which is why the workings are written out below under corporation tax & limited company. Read those, then check the numbers against your own accounts, and speak to us if anything looks materially different from what you expected.

Last reviewed 12 September 2026 for the 2026/27 tax year. Reviewed by Waqas Sagar, Member of ICAEW, Fellow of ACCA, Fellow of AAT.

Group relief calculator

Your figures

Result, 2026/27

Loss surrendered

£40,000

Corporation tax before group relief

Marginal relief (effective rate between 19% and 25%)
£29,925

Corporation tax after group relief

Marginal relief (effective rate between 19% and 25%)
£19,325

Group corporation tax saved

£10,600

Loss remaining in surrendering company

£0

Illustration only, figures are based on the rates you have selected and the information entered. Please check your own position with us before acting.

Estimates for the 2026/27 tax year using published GOV.UK rates. Switch between 2026/27 and 2025/26 above.

How this is calculated

Group relief allows a company with a trading loss, or certain other losses, to surrender some or all of it to another company in the same 75% group, which then deducts it from its own taxable profit for the corresponding period, rather than the loss-making company having to carry it forward against its own future profits.

The amount surrendered cannot exceed the lower of the available loss and the claimant company's taxable profit, since group relief cannot create a repayment or reduce profit below nil. The saving is the corporation tax the claimant company would otherwise have paid on the surrendered amount, calculated at its own marginal rate including any marginal relief.

Because two or more companies under common control share the £50,000 and £250,000 corporation tax thresholds between them, both companies' thresholds are divided by the number of associated companies, which the calculator reflects by assuming two associated companies.

When it makes sense

Group relief is most useful where a group has one established, profitable trading company and a newer or seasonal company running at a loss, such as a development company still incurring pre-revenue costs. Instead of the loss sitting unused for years, it reduces the group's overall tax bill in the year it arises.

It requires the companies to be genuinely part of a group for tax purposes, generally 75% or more common ownership, and both companies need overlapping accounting periods; if periods do not match exactly, the surrender is apportioned on a time basis.

Practical steps

Group relief claims are made and consented to on each company's own corporation tax return, and both companies need to agree the amount surrendered in writing. There is no cash payment required by law, though groups commonly agree a payment for the loss up to the tax saved, which itself is tax neutral if it does not exceed that saving.

Keep clear group structure evidence (shareholdings, common control) on file, since HMRC can and does check group relief claims where ownership is not straightforward.

What this means for your company

Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.

Frequently asked questions

What ownership level is needed for group relief?

Broadly the surrendering and claimant companies need to be at least 75% commonly owned, either one owning the other or both being subsidiaries of the same parent, for the whole or relevant part of the accounting periods concerned.

Can I surrender more loss than the claimant company's profit?

No. The amount surrendered is capped at the claimant company's taxable profit for the corresponding period, so any loss above that figure stays with the surrendering company to carry forward.

Do the companies need to pay each other for group relief?

No payment is legally required, but it is common practice for the claimant to pay the surrendering company an amount up to the tax saved, and such payments are not taxable or deductible if kept within that limit.

What if the two companies have different year ends?

The loss and profit are matched on a time-apportioned basis for the overlapping period only, so mismatched accounting periods reduce the amount of loss that can effectively be surrendered.

These calculators are provided for general illustration and do not constitute tax or financial advice. Results depend on the accuracy and completeness of the information entered, and on circumstances this tool cannot capture, including residence, other income, reliefs, group structures and prior-year positions. Rates and thresholds are those published by HMRC for the tax year selected and may change. You should not act, or refrain from acting, on the basis of these figures alone. For advice specific to your company, book a free consultation.

Key tax terms explained

Talk to an accountant

Tell us what is getting in the way.

Share your next deadline, accounting problem or growth question. We will reply with a clear next step and quote any technical work before it begins.

Chat with ACCOTAX on WhatsApp
Free, no obligation

Book a call

Pick a time that suits you and a qualified accountant will call you about your company, deadlines and fees.

020 3441 1258 WhatsApp us

Appointments run Monday to Friday, 9:00am to 5:30pm. Your confirmation is emailed straight away.

Four London offices

Meet us in Morden, Croydon, Chelsea or Mitcham

Work with us entirely online, or sit down with your accountant at whichever office suits you. Open Monday to Friday, 9:00am to 5:30pm. Office visits are by appointment only, so please book before coming in.

Morden, Surrey12 London Road, Morden, SM4 5BQHead office, two minutes from Morden Underground station.DirectionsRead ACCOTAX Google reviews
Croydon73 Park Lane, Croydon, CR0 1JGCentral Croydon, minutes from East Croydon station.DirectionsRead Croydon Google reviews
ChelseaM-112, 65-69 Lots Road, SW10 0RNWest London base for Chelsea, Fulham and Kensington clients.DirectionsRead ACCOTAX Google reviews
Mitcham141 Morden Road, CR4 4DGServing Mitcham, Tooting and the CR4 postcodes.DirectionsRead Mitcham Google reviews

Free, no obligation

Book a call

Pick a time that suits you and a qualified accountant will call you about your company, deadlines and fees.

Appointments run monday to friday, 9:00am to 5:30pm. Your confirmation is emailed straight away.

WhatsApp