At $1$ April $2023$ Loki Limited had the following ownership structure:

Sylvie $30\%$

Mobius $70\%$

Loki Limited incurred a net loss of $$100,000$ during the $2023/24$ income year.

At $1$ April $2023,$ Thor Limited had the following ownership structure:

Thor $10\%$

Jane $30\%$

Loki Limited $60\%$

Thor Limited derived net income of $$500,000$ during the $2023/24$ income year.

There were no changes of ownership in either company during the $2023/24$ income year.

Required:

Explain if Loki Limited and Thor Limited form a group of companies and explain if Loki Limited can offset its net loss against Thor Limited$$s net income. Show your workings.