Corporation Tax Act 2010 section 188BJ

Restriction on surrender of losses etc. made when dual resident

Section 188BJ prevents a dual resident company from surrendering carried-forward losses as group relief where the same restriction would have applied to current-year group relief under the dual residency rules.

• A dual resident company that is blocked from surrendering losses under the standard group relief rules (section 109) faces the same block when attempting to surrender carried-forward losses.
• The restriction applies to losses and any other amounts that would otherwise be eligible for surrender under the carried-forward loss provisions.
• The rule ensures consistency between the treatment of current-year group relief and group relief for carried-forward losses for dual resident companies.
• If the surrendering company was ineligible under the dual residency restriction in section 109, it cannot circumvent that restriction by using the carried-forward loss route instead.