C1F1PART 5AGroup relief for carried-forward losses
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 5Limitations on relief: claims under section 188CC
General limitation on amount of relief
188ECUnused part of surrenderable amounts attributable to specified loss-making period
1
The unused part of the surrenderable amounts that are attributable to the specified loss-making period is the amount equal to—
a
the surrenderable amount for the overlapping period (see subsection (2)), less
b
the amount of prior surrenders for that period (see subsections (3) to (5)).
2
To determine the surrenderable amount for the overlapping period—
a
take the proportion of the surrender period included in the overlapping period, and
b
apply that proportion to the surrenderable amounts for the surrender period that are attributable to the specified loss-making period.
The surrenderable amount for the overlapping period is the amount given as a result of paragraph (b).
3
To determine the amount of prior surrenders for the overlapping period—
a
identify any prior claims for the purposes of this section (see subsection (4)), and
b
take the steps set out in subsection (5) in relation to each such claim.
The amount of prior surrenders for the overlapping period is the total of the previously used amounts given at step 3 in subsection (5) for all the prior claims.
4
A claim is a prior claim for the purposes of this section if—
a
it is either—
i
a claim under section 188CB by any company which relates to the amounts to which the current claim relates (as well as any other amounts), or
ii
a claim under section 188CC by any company which relates to the same amounts to which the current claim relates,
b
it is made before the current claim, and
c
it has not been withdrawn.
5
These are the steps referred to in subsection (3)(b) to be taken in relation to each prior claim.
Step 1 Identify the overlapping period for the prior claim.
Step 2 Identify any period that is common to the overlapping period for the current claim and the overlapping period for the prior claim. If there is a common period, go to step 3. If there is no common period, there is no previously used amount in relation to the prior claim (and ignore step 3).
Step 3 Determine the previously used amount of group relief for carried-forward losses in relation to the prior claim (see subsections (6) to (8)).
6
To determine the previously used amount of group relief for carried-forward losses in relation to a prior claim made under section 188CB—
Step 1 Take the proportion of the overlapping period for the prior claim that is included in the common period identified at step 2 in subsection (5) in relation to that claim.
Step 2 Apply that proportion to the amount of group relief for carried-forward losses given on the claim.
Step 3 Multiply the amount arrived at under step 2 by the fraction set out in subsection (7).
7
The fraction is—
where—
A is the sum of the surrenderable amounts that are attributable to the specified loss-making period, and
B is the sum of all the surrenderable amounts.
8
To determine the previously used amount of group relief for carried-forward losses in relation to a prior claim made under section 188CC—
a
take the proportion of the overlapping period for the prior claim that is included in the common period identified at step 2 in subsection (5) in relation to that claim, and
b
apply that proportion to the amount of group relief for carried-forward losses given on the prior claim.
The previously used amount of group relief for carried-forward losses in relation to the prior claim is the amount given as a result of paragraph (b).
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