The Corporation Tax (Surrender of Terminal Losses on Films and Claims for Relief) Regulations 2007

Claims for more or less than the terminal loss available for surrender

7.—(1) A claim to treat the terminal loss surrendered by company A as if it were a loss brought forward by company B may be made for less than the amount available for surrender at the time the claim is made.

(2) A claim is ineffective if the amount claimed exceeds the terminal loss available for surrender at the time the claim is made.

(3) For these purposes the terminal loss available for surrender is calculated as follows, subject to paragraphs (4) and (5).

First step

Determine the total amount available for surrender under section 45 of FA 2006—

(a) on the basis of the information in company A’s company tax return, and

(b) disregarding any amendments whose effect is deferred under paragraph31(3) of Schedule 18 to FA 1998.

Second step

Then deduct the total of all amounts for which notices of consent have been given by company A and not withdrawn.

(4) Where one or more claims are withdrawn on the same day as one or more claims are made, the withdrawals are given effect first.

(5) Where more than one claim is made on the same day, and the claims together take the amount claimed over the limit of what is available for surrender, an officer of Revenue and Customs may determine which of the claims is to be ineffective.