14 July 2026 · Loss Relief
Group Loss Relief & Leaving the Group
Inside a Tax Group, the members' results are consolidated, so one member's losses effectively offset another's profits in the single group return. Pre-grouping (carried-forward) losses of a member can generally only be used against that member's own income, subject to conditions. When a company leaves the group, unutilised group losses and its own losses are dealt with under specific rules, so timing and structuring matter.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Losses offset across members
Consolidation is the main saving.
- Members' profits and losses are consolidated.
- One member's loss reduces another's profit.
- Single group return captures the net result.
- Improves cash tax across the group.
Pre-group losses and leaving
Not every loss flows freely.
- Pre-grouping losses are broadly ring-fenced to that member.
- Utilisation is subject to conditions.
- Leaving the group triggers specific loss rules.
- Plan entries and exits carefully.
Related guides
Frequently Asked Questions
For groups with loss-making members.
Can one company's loss reduce another's tax?
Yes. Inside a tax group the results are consolidated, so losses offset profits in the single group return.
Can I use old losses brought into the group?
Pre-grouping carried-forward losses can generally only be used against that member's own income, subject to conditions.
What happens to losses when a member leaves?
Specific rules govern unutilised losses on exit, so the timing of leaving matters.
Can Exiloz optimise group losses?
Yes. We structure entries, exits and loss use to maximise the group benefit.
Use group losses well
Exiloz structures your group so losses offset profits without wasting relief.