Corporation Tax Act 2010 section 188DE

Previously claimed group relief for carried-forward losses

Section 188DE explains how to calculate the amount of group relief for carried-forward losses that has already been claimed in respect of an overlapping period, so that this can be taken into account when processing a new claim.

• A "prior claim" is any earlier, unwithdawn claim for group relief for carried-forward losses that would reduce the claimant company's total profits of the same claim period.
• For each prior claim, you must identify its own overlapping period and then determine whether any part of that period is common to the overlapping period of the current claim.
• Where a common period exists, the previously claimed amount is found by taking the proportion of the prior claim's overlapping period that falls within the common period and applying that proportion to the group relief for carried-forward losses given on the prior claim.
• The total previously claimed group relief for carried-forward losses for the overlapping period is the sum of the previously claimed amounts calculated across all prior claims.