Corporation Tax Act 2010 section 676CD

Cases where consortium condition 3 or 4 was previously met

Section 676CD provides an exception to the general restriction on group relief for carried-forward losses after a change in company ownership, where certain consortium conditions were already in place spanning the period before and after the ownership change.

• Where consortium condition 3 or 4 was met throughout a continuous period that began before or during the loss-making period and ended at or after the change in ownership, the general restriction in section 676CB(3) does not apply
• The exception applies to claims for accounting periods ending after the ownership change, where the surrendered amount is a relevant pre-acquisition loss of the transferred company
• Relief is limited for a five-year period based on the ownership proportion applicable to the specified loss-making period — effectively capping relief at the consortium member's share during the year the loss originally arose
• For claims made under this exception, the normal requirement 3 in section 188CC(3) is treated as not applying