Corporation Tax Act 2010 section 188EA

Overview of Chapter

Section 188EA provides an overview of the chapter that sets out limitations on the amount of group relief for carried-forward losses that may be claimed in consortium situations under section 188CC.

• This chapter governs limitations on group relief claims for carried-forward losses made under section 188CC, which deals with surrenderable amounts attributable to a specified accounting period.
• The rules apply where the surrendering company is owned by a consortium and the claim is made by a member of that consortium (known as consortium condition 3).
• The rules also apply where the claim is made by a company in the same group as a consortium member, in which case the consortium member is referred to as the "link company" (consortium condition 4).
• The chapter restricts the extent of relief available, ensuring that claims connected with surrenderable amounts are limited according to the claimant's relationship with the consortium-owned surrendering company.