Corporation Tax Act 2010 section 357JHA

Availability of relief

Section 357JHA sets out priority rules for how group relief for carried-forward losses is allocated between Northern Ireland profits and mainstream (non-Northern Ireland) profits.

• Where a company has trade losses carried forward, these must be separately identified as either Northern Ireland losses or mainstream losses for group relief purposes.
• When a surrendered amount is a Northern Ireland loss and the claimant company has both Northern Ireland and non-Northern Ireland profits, the relief must be set against Northern Ireland profits first.
• When a surrendered amount is a mainstream (non-Northern Ireland) loss and the claimant company has both types of profit, the relief must be set against non-Northern Ireland profits first.
• These priority rules ensure that losses are matched, as far as possible, against profits of the same type before being set against profits of the other type.