F1PART 5AGroup relief for carried-forward losses
CHAPTER 2Surrender of company's carried-forward losses etc
188BBSurrender of carried-forward losses and other amounts
1
Subsection (2) applies if—
a
a loss or other amount is carried forward to an accounting period of a company under any of the following provisions—
i
section 463G(6) of CTA 2009 (carry forward of post-1 April 2017 non-trading deficit from loan relationships);
ii
section 753(3) of that Act (carry forward of non-trading loss on intangible fixed assets);
iii
section 1223 of that Act (carry forward of expenses of management of investment business);
iv
section 45A(4) of this Act (carry forward of post-1 April 2017 trade loss);
v
sections 62(5)(a) and 63(3)(a) of this Act (carry forward of loss made in UK property business); or
b
section 303C of this Act (excess carried forward non-decommissioning losses of ring fence trade: relief against total profits) applies in relation to an amount.
2
The company may surrender the loss or other amount under this Chapter so far as the loss or other amount is eligible for corporation tax relief (apart from this Part).
3
Subsection (4) applies if any of a BLAGAB trade loss made by an insurance company for an accounting period is carried forward to an accounting period of the company (“the later period”) under section 124A(2) or 124C(3) of FA 2012.
4
The company may surrender the remaining carried forward amount under this Chapter so far as that amount is eligible for corporation tax relief (apart from this Part).
5
In subsection (4) “the remaining carried forward amount” means so much of the amount carried forward (as mentioned in subsection (3)) as cannot be deducted under section 124A(5) or 124C(6) of FA 2012 from the company's BLAGAB trade profit (if any) of the later period.
6
Under paragraph 70(1) of Schedule 18 to FA 1998, the company surrenders losses or other amounts, so far as eligible for surrender under this Chapter, by consenting to one or more claims for group relief for carried-forward losses in relation to the amounts (see requirement 1 in section 188CB(3) and requirement 1 in section 188CC(3)).
7
In this Part, in relation to losses or other amounts within subsection (1) or (4) that a company has carried forward to an accounting period—
“the surrenderable amounts” means those losses and other amounts so far as eligible for surrender under this Chapter,
“surrendering company” means the company that has the losses or other amounts,
“the surrender period” means the accounting period to which the losses and other amounts have been carried forward.
8
See sections 188BC to 188BJ for provisions restricting what the surrendering company may surrender under this section.
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