[F1PART 5AU.K.Group relief for carried-forward losses
Textual Amendments
F1Pt. 5A inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 23
CHAPTER 5U.K.Limitations on relief: claims under section 188CC
General limitation on amount of reliefU.K.
188EFThe potential Part 5 group relief amountU.K.
(1)The potential Part 5 group relief amount is determined as follows—
Step 1 Calculate the maximum amount of group relief that could have been given to the claimant company under Part 5 in relation to losses or other amounts within section 99(1) which the surrendering company had for the specified loss-making period. In applying this step, ignore any lack of profits of the claimant company from which deductions could have been made as mentioned in section 137(1).
Step 2 Deduct from the amount arrived at under step 1 the amount of any group relief actually given to the claimant company under Part 5 in relation to losses or other amounts within section 99(1) which the surrendering company had for the specified loss-making period.
Step 3 Multiply the amount arrived at following step 2 by the fraction in subsection (2).
Step 4 Deduct from the amount arrived at following step 3 any group relief for carried-forward losses previously given to the claimant company on claims under section 188CC which are related to the current claim.
(2)The fraction referred to in step 3 is—
where—
A is the sum of the losses or other amounts within section 99(1)(a), (c), (e), (f) and (g) which the surrendering company had for the specified loss-making period, and
B is the sum of the losses or other amounts within section 99(1) (a) to (g) which the surrendering company had for the specified loss-making period.
(3)References in subsection (2) to losses or other amounts are references to losses or other amounts only in so far as they were eligible for surrender under Chapter 2 of Part 5.
(4)A claim under section 188CC is related to the current claim if the surrendering company and the specified loss-making period are the same in relation to both claims.]