Corporation Tax Act 2010 (c. 4)

[F1 PART 5A U.K. Group relief for carried-forward losses

Textual Amendments

F1 Pt. 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

Modifications etc. (not altering text)

C1 Pt. 5A excluded (14.7.2022) by Energy (Oil and Gas) Profits Levy Act 2022 (c. 40), s. 1(5)(e) (with ss. 15(1), 16(1))

CHAPTER 6 U.K. Miscellaneous provisions and interpretation of Part

Miscellaneous U.K.

188FA Payments for group relief for carried-forward losses U.K.

(1) This section applies if—

(a) the surrendering company and the claimant company have an agreement between them in relation to losses and other amounts of the surrendering company (“the agreed loss amounts”),

(b) group relief for carried-forward losses is given to the claimant company in relation to the agreed loss amounts, and

(c) as a result of the agreement the claimant company makes a payment to the surrendering company that does not exceed the total amount of the agreed loss amounts.

(2) The payment—

(a) is not to be taken into account in determining the profits or losses of either company for corporation tax purposes, and

(b) for corporation tax purposes is not to be regarded as a distribution.

Interpretation U.K.

188FB Subsidiaries, groups and consortiums U.K.

Chapter 5 of Part 5 (which explains certain key concepts for the purposes of Part 5, including (in particular) how to determine if a company is a member of a group of companies or is a member of, or is owned by a consortium) applies for the purposes of this Part as it applies for the purposes of Part 5.

188FC “Trading company” and “holding company” U.K.

(1) In this Part “trading company” means a company the business of which consists wholly or mainly in the carrying on of a trade.

(2) In this Part “holding company” means a company the business of which consists wholly or mainly in the holding of shares or securities that—

(a) are its 90% subsidiaries, and

(b) are trading companies.

188FD Other definitions U.K.

(1) In this Part—

• “the claimant company” has the meaning given by section 188CB(2) or 188CC(2),

• “the claim period” has the meaning given by section 188CB(2) or 188CC(2),

• “company” means any body corporate,

• “group relief for carried-forward losses” has the meaning given by section 188AA(4),

• “profits” means income and chargeable gains, except in so far as the context otherwise requires,

• “shock loss” has the meaning given by section 269ZK,

• “Solvency 2 insurance company” means an insurance company as defined in section 269ZP(2),

• “the specified loss-making period”, in relation to a claim for group relief for carried forward losses made under section 188CC, has the meaning given by subsection (2) of that section,

• “the surrenderable amounts” has the meaning given by section 188BB(7),

• “surrendering company” has the meaning given by 188BB(7), and

• “the surrender period” has the meaning given by section 188BB(7).

(2) In this Part, except in so far as the context otherwise requires—

(a) references to a trade include an office, and

(b) reference to carrying on a trade include holding an office.]