Corporation Tax Act 2010 section 188CD

Claim not allowed by company with unused carried-forward losses of its own

Section 188CD prevents a company from claiming group relief for carried-forward losses in an accounting period if it has not fully used its own carried-forward losses or has chosen to restrict the use of certain losses against its own profits.

• A company cannot claim group relief for carried-forward losses if it has its own carried-forward losses (of the types eligible for surrender within a group) that have not been fully deducted from its total profits for the period.
• A claim is also blocked if the company has elected to exclude a non-trading loan relationship deficit from being set against its profits for that period.
• The restriction applies where the company has claimed that its trade profits should not be reduced, or should not be reduced beyond a specified amount, by carried-forward trade losses.
• Similarly, a company is blocked from claiming group relief for carried-forward losses if it has elected that relief for all or a specified part of a carried-forward post-April 2017 trade loss should not be given in that period.