Corporation Tax Act 2010 section 188BD

Restriction where investment business has become small or negligible

Section 188BD prevents a company from surrendering certain carried-forward losses and expenses as group relief where its investment business has become small or negligible before the start of the surrender period.

• A company cannot surrender carried-forward non-trading loan relationship deficits if its investment business became small or negligible before the surrender period began
• Carried-forward management expenses cannot be surrendered if the company's investment business had already become small or negligible before the surrender period
• Carried-forward UK property business losses cannot be surrendered where the company's investment business became small or negligible before the start of the surrender period
• The restriction applies specifically to carried-forward amounts and is triggered by the investment business shrinking before the relevant surrender period begins