Section 188EI — Corporation Tax Act 2010: Condition 4: companies in link company's group

Condition 4: companies in link company's group 188EI 1 Where—

a the claimant company makes a claim under section 188CC, and b the claim is based on consortium condition 4 the amount of relief to be given on the claim is limited by subsections (2) and (3).

2 There is a limit on the amount of group relief for carried-forward losses that can be given, in total, on relevant consortium claims made by the link company and group companies.

3 That limit is the maximum amount of group relief for carried-forward losses that could be given to the link company on relevant consortium claims—

a assuming that no relevant consortium claims were made by group companies based on consortium condition 4, b assuming that the link company was UK related, and c ignoring any lack of profits of the link company from which deductions could be made as mentioned in section 188CK(1).

4 In this section— “ consortium claim ” means a claim made under section 188CC for group relief for carried-forward losses, “ group company ” means a company that is a member of the same group of companies as the link company (other than the link company), “ relevant consortium claim ” means a consortium claim in relation to which the surrendering company, the surrender period and the specified loss-making period are the same as is the case for the claim mentioned in subsection (1), and “ UK related ”, in relation to a company, has the meaning given by section 188CJ.