Corporation Tax Act 2010 section 188EE

Previously claimed group relief for carried-forward losses

Section 188EE 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 determining the limit on a current claim.

• A prior claim is one made by the same claimant company for group relief for carried-forward losses against total profits of the same claim period, provided it was made before the current claim and has not been withdrawn.
• For each prior claim, you must identify whether its overlapping period shares any common period with the overlapping period of the current claim; if there is no common period, that prior claim is ignored.
• Where a common period exists, you calculate the proportion of the prior claim's overlapping period that falls within that common period, and apply that proportion to the group relief for carried-forward losses given on the prior claim.
• The total of all such proportioned amounts across all prior claims gives the previously claimed group relief for carried-forward losses for the overlapping period.

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