Corporation Tax Act 2010 section 188DB

Limitation on amount of relief applying to all claims under section 188CB

Section 188DB sets out the overall cap on the amount of group relief for carried-forward losses that a claimant company may obtain when making a claim in relation to all surrenderable amounts.

• The relief available on any claim is limited to the lower of two amounts: the unused part of the surrendering company's surrenderable amounts, and the claimant company's remaining capacity to absorb such relief for the overlapping period.
• The unused part of the surrenderable amounts is the total that the surrendering company is permitted to surrender, reduced by any amounts already surrendered to other claimants.
• The claimant company's remaining capacity is its relevant maximum for the overlapping period, reduced by any group relief for carried-forward losses it has already claimed for that same period.
• Where consortium arrangements are involved, additional conditions relating to ownership proportions and group membership may further restrict the relief available.