Corporation Tax Act 2010 section 188EB

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

Section 188EB caps the amount of group relief for carried-forward losses that can be claimed, by requiring the relief to be the lowest of three separately calculated amounts.

• The relief given on any claim for group relief for carried-forward losses is limited to the smallest of three amounts.
• The first amount is the unused part of the surrenderable amounts linked to the specified loss-making period — that is, the total available for surrender minus anything already surrendered from that period.
• The second amount is the claimant company's relevant maximum for the overlapping period, reduced by any group relief for carried-forward losses it has already claimed for that same period.
• The third amount is the potential Part 5 group relief amount — essentially, the amount the claimant company could have claimed under the ordinary group relief rules for the period in which the losses originally arose.