Corporation Tax Act 2010 section 119

The qualifying loss condition: relief for future periods

Section 119 sets out the condition that, for an EEA loss to qualify for cross-border group relief, the loss must not be capable of being relieved in any future period, whether by deduction against profits or by any other form of relief.

• Any part of the EEA amount that could be deducted in calculating the profits of any person in a future period does not qualify for cross-border group relief.
• Similarly, any part of the EEA amount for which relief is available in a future period by means other than a deduction in calculating profits is also excluded.
• The "any person" test is broad — it is not limited to the surrendering company but extends to any person who might use the loss.
• Whether foreign tax relief might be available is assessed as at the end of the period in which the EEA amount arises.