What are the requirements for claiming group relief for carried-forward losses under section 188CB of the Corporation Tax Act 2010?

Three requirements must be met: the surrendering company must consent to the claim, the claim period and surrender period must overlap, and during that overlapping period the companies must satisfy the group condition or one of two consortium conditions relating to consortium ownership of the claimant company.

Can a company claim only part of the surrenderable amounts under section 188CB?

Yes, a claim under section 188CB does not have to cover the full surrenderable amount available. The claimant company may choose to claim all of the surrenderable amounts or only a part of them, giving flexibility in how group relief for carried-forward losses is utilised across the group.

What restriction applies if the claimant company has its own unused carried-forward losses?

Under section 188CD of the Corporation Tax Act 2010, a company that has unused carried-forward losses of its own is not permitted to make a claim under section 188CB. This restriction must always be considered before submitting a claim for group relief for carried-forward losses.

What is the overlapping period in the context of section 188CB group relief claims?

The overlapping period is the portion of time that falls within both the claimant company's claim period and the surrendering company's surrender period. During this overlapping period, the companies must meet the group condition or a consortium condition for a valid claim to be made.

Corporation Tax Act 2010 section 188CB

Claims in relation to all the surrenderable amounts

Section 188CB sets out the requirements that must be met before a company can claim group relief for carried-forward losses in respect of another company's surrenderable amounts.

The surrendering company must consent to the claim, and the claim and surrender periods must overlap.
During the overlapping period, the companies must satisfy the group condition or one of two consortium conditions.
A claim may cover all or only part of the surrenderable amounts available.
A company cannot make a claim if it has unused carried-forward losses of its own.

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