In Farnborough Airport Properties Company v HMRC the Upper Tribunal agreed with the First-tier Tribunal that the appointment of a receiver over a company’s affairs severed the company (the “subsidiary”) from the group relief group of its parent.  This was on the basis that the powers of the receiver meant that the parent company no longer had control over its subsidiary because it couldn’t secure that the affairs of the subsidiary were conducted in accordance with its wishes.

While depending to some extent on the powers given to the receiver, any proposed appointment of a receiver should be considered carefully if there is a desire to continue to surrender losses from the subsidiary to the parent or above in the group structure.