Corporation Tax Act 2010 section 93

Groups of companies

Section 93 explains how the restriction on carry-forward loss relief following a write-off of government investment is extended across a group of companies, so that the restriction is not limited to the company that directly received the investment.

• Where a company that has had government investment written off is part of a group at the end of an accounting period, the loss relief restriction under section 92 can be spread across the group.
• The restriction may be applied wholly or partly against the carry-forward losses of one or more other group members, on a just and reasonable basis.
• Any company in the same group at the end of the relevant accounting period — other than the company that received the written-off investment — may have its carry-forward losses reduced.
• A group of companies for this purpose means a parent company together with any companies in which it holds at least a 51% subsidiary interest.