Corporation Tax Act 2010 section 188FB

Subsidiaries, groups and consortiums

Section 188FB applies the definitions of subsidiaries, groups and consortiums from Part 5 of the Corporation Tax Act 2010 so that they also apply for the purposes of Part 5A (carried-forward losses).

• Chapter 5 of Part 5 contains key definitions used to determine whether a company belongs to a group of companies or is a member of, or owned by, a consortium.
• These definitions are imported into Part 5A, so that the same concepts apply consistently when dealing with carried-forward losses.
• This avoids the need for Part 5A to create its own separate definitions of group membership or consortium ownership.
• In practice, when determining entitlement to relief under Part 5A, you should refer to the group and consortium rules set out in Chapter 5 of Part 5.