Corporation Tax Act 2010 section 357JHC

Modifications of Chapter 4 of Part 5A

Section 357JHC modifies the rules that limit group relief for carried-forward losses (under Chapter 4 of Part 5A) where the surrenderable amounts in a claim include a Northern Ireland loss.

• Where surrenderable amounts include a Northern Ireland loss, the normal limits on group relief for carried-forward losses are split into two separate caps: one on the volume of losses surrendered, and another on the deduction that results from the claim.
• When calculating the unused part of surrenderable amounts, references to the amount of group relief given on a claim are read as references to the amount of losses and other surrenderable amounts actually used, rather than the deduction received.
• When calculating previously claimed group relief for carried-forward losses, references to the amount of group relief given are read as references to the deduction made as a result of the claim.
• Where claims are based on consortium condition 1, or made by a member of a group, the relevant caps operate as limits on the deduction that can be made, rather than on the nominal amount of group relief claimed.