Corporation Tax Act 2010 section 357JHD

Modifications of Chapter 5 of Part 5A

Section 357JHD modifies the limitations on group relief for carried-forward losses (under Chapter 5 of Part 5A) where the surrenderable amounts include a Northern Ireland loss.

• Where surrenderable amounts include a Northern Ireland loss, the standard limitations on group relief for carried-forward losses under Chapter 5 of Part 5A still apply, but with specific modifications set out in this section.
• The three existing caps in section 188EB(1) are treated as separate limits: one caps the amount of losses and surrenderable amounts eligible for relief, while the other two cap the size of the deduction resulting from the claim.
• When calculating unused surrenderable amounts (sections 188EC and 188EG), references to group relief given on a claim are read as references to the amount of losses and surrenderable amounts actually relieved, rather than the monetary value of relief.
• When calculating previously claimed relief and applying the link company group condition (sections 188EE, 188EI, and 188EK), references to group relief given or available are read as references to either the deduction made or the maximum losses and surrenderable amounts on which relief could be given, as appropriate.