Corporation Tax Act 2010 section 188EC

Unused part of surrenderable amounts attributable to specified loss-making period

Section 188EC explains how to calculate the unused portion of surrenderable amounts that relate to a specified loss-making period, by determining what can be surrendered for the overlapping period and then deducting amounts already used by prior group relief claims.

• The unused part equals the surrenderable amount for the overlapping period minus the amount already used by prior surrenders for that period.
• The surrenderable amount for the overlapping period is found by time-apportioning the surrender period amounts attributable to the specified loss-making period according to how much of the surrender period falls within the overlapping period.
• Prior surrenders are identified by looking at earlier, unwithddrawn claims (under section 188CB or section 188CC) that relate to the same surrenderable amounts, and finding any common period between the current and prior overlapping periods.
• For each prior claim with a common period, the previously used amount is time-apportioned to that common period, and for section 188CB claims an additional fraction is applied to isolate the part attributable to the specified loss-making period.