Corporation Tax Act 2010 section 188DC

Unused part of the surrenderable amounts

Section 188DC explains how to calculate the unused part of the surrenderable amounts available for group relief for carried-forward losses, by identifying the surrenderable amount for the overlapping period and deducting any amounts already claimed under prior surrenders.

• The unused part equals the surrenderable amount for the overlapping period minus the amount of any prior surrenders already made for that period
• The surrenderable amount for the overlapping period is calculated by taking the proportion of the surrender period that falls within the overlapping period, and applying that proportion to the total surrenderable amounts for the surrender period
• Prior surrenders are identified by looking at earlier, unwithhdrawn claims under sections 188CB or 188CC that relate to the same or overlapping amounts, and calculating how much of each prior claim falls within the common period shared with the current claim
• The overlapping period is the period common to the accounting periods of the surrendering company and the claimant company, as defined in section 188DG