Corporation Tax Act 2010 section 188DI

Condition 2: ownership proportion

Section 188DI limits the amount of group relief for carried-forward losses that can be claimed under consortium condition 2, by reference to the ownership proportion between the claimant company and the link company.

• This section applies when a company claims group relief for carried-forward losses and bases that claim on consortium condition 2.
• Consortium condition 2 involves a surrendering company that is in the same group as a "link company" which is itself a member of a consortium.
• The ownership proportion cap from section 188DH applies, but the proportion is calculated by reference to the link company rather than the surrendering company.
• In practice, this means the claimant's percentage ownership of the link company determines the maximum relief available, not its relationship with the actual surrendering company.