Search Legislation

Corporation Tax Act 2010

 Help about what version

What Version

 Help about advanced features

Advanced Features

Changes over time for: Cross Heading: General limitation on amount of relief

 Help about opening options

Version Superseded: 12/02/2019

Status:

Point in time view as at 16/11/2017.

Changes to legislation:

There are currently no known outstanding effects for the Corporation Tax Act 2010, Cross Heading: General limitation on amount of relief. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

[F1General limitation on amount of reliefU.K.

Textual Amendments

F1Pt. 5A inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 23

188DBLimitation on amount of relief applying to all claims under section 188CBU.K.

(1)The amount of group relief for carried-forward losses to be given on a claim under section 188CB (“the current claim”) is limited to whichever is the lesser of—

(a)the amount mentioned in subsection (2), and

(b)the amount mentioned in subsection (3).

(2)The amount referred to in subsection (1)(a) is the unused part of the surrenderable amounts (see section 188DC).

(3)The amount referred to in subsection (1)(b) is the difference between—

(a)the claimant company's relevant maximum for the overlapping period (see section 188DD), and

(b)the amount of previously claimed group relief for carried-forward losses for the overlapping period (see section 188DE).

188DCUnused part of the surrenderable amountsU.K.

(1)The unused part of the surrenderable amounts is the amount equal to—

(a)the surrenderable amount for the overlapping period (see subsection (2)), less

(b)the amount of prior surrenders for that period (see subsections (3) to (5)).

(2)To determine the surrenderable amount for the overlapping period—

(a)take the proportion of the surrender period included in the overlapping period, and

(b)apply that proportion to the surrenderable amounts for the surrender period.

The surrenderable amount for the overlapping period is the amount given as a result of paragraph (b).

(3)To determine the amount of prior surrenders for the overlapping period—

(a)identify any prior claims for the purposes of this section (see subsection (4)), and

(b)take the steps set out in subsection (5) in relation to each such claim.

The amount of prior surrenders for the overlapping period is the total of the previously used amounts given at step 3 in subsection (5) for all the prior claims.

(4)A claim is a prior claim for the purposes of this section if—

(a)it is either—

(i)a claim under section 188CB by any company which relates to the same amounts as the current claim, or

(ii)a claim under section 188CC by any company which relates to amounts included in the amounts to which the current claim relates,

(b)it is made before the current claim, and

(c)it has not been withdrawn.

(5)These are the steps referred to in subsection (3)(b) to be taken in relation to each prior claim.

  • Step 1 Identify the overlapping period for the prior claim.

  • Step 2 Identify any period that is common to the overlapping period for the current claim and the overlapping period for the prior claim. If there is a common period, go to step 3. If there is no common period, there is no previously used amount in relation to the prior claim (and ignore step 3).

  • Step 3 Determine the previously used amount of group relief for carried-forward losses in relation to the prior claim (see subsection (6)).

(6)To determine the previously used amount of group relief for carried-forward losses in relation to a prior claim—

(a)take the proportion of the overlapping period for the prior claim that is included in the common period identified at step 2 in relation to that claim, and

(b)apply that proportion to the amount of group relief for carried-forward losses given on the prior claim.

The previously used amount of group relief for carried-forward losses in relation to the prior claim is the amount given as a result of paragraph (b).

(7)For the meaning of the “overlapping period” see section 188DG.

188DDClaimant company's relevant maximum for overlapping periodU.K.

(1)The claimant company's relevant maximum for the overlapping period is determined as follows—

  • Step 1 Calculate the claimant company's relevant maximum for the claim period in accordance with section 269ZD(4).

  • Step 2 Deduct from that amount the sum of—

    (a)

    any deductions made by the company for the claim period

    (i)

    under section 45(4)(b) or 45B(4), or

    (ii)

    under section 303B or 303D by virtue of section 304(5),

    (b)

    any deductions made by the company for the claim period under section 457(3) or 463H(5) of CTA 2009,

    (c)

    any deductions made by the company for the claim period under section 124(5), 124A(5) or 124C(6) of FA 2012, and

    (d)

    any deductions made by the company for the claim period which are deductions within any of paragraphs (a) to (i) and (k) of section 269ZD(3).

  • Step 3 Take the proportion of the claim period included in the overlapping period and apply that proportion to the amount arrived at under step 2.

(2)In step 2 of subsection (1)—

(a)in paragraph (a)(i), the references to deductions under section 45(4)(b) or 45B(4) do not include deductions that would be ignored for the purposes of section 269ZB by reason of—

(i)section 1209(3), 1210(5A) or 1211(7A) of CTA 2009 (losses of film trade),

(ii)section 1216DA(3), 1216DB(5A) or 1216DC(7A) of that Act (losses of television programme trade),

(iii)section 1217DA(3), 1217DB(5A) or 1217DC(7A) of that Act (losses of video game trade),

(iv)section 1217MA(3) or 1217MC(9) of that Act (losses of theatrical trade),

(v)section 1217SA(3) or 1217SC(9) of that Act (losses of orchestral trade),

(vi)section 1218ZDA(3) or 1218ZDC(9) of that Act (losses of museum or gallery exhibition trade),

(vii)section 65(4B) or 67A(5A) (losses of UK or EEA furnished holiday lettings business),

(viii)section 269ZJ(1) (insurance companies: shock losses),

(ix)section 304(7) (certain losses of ring fence trades), or

(x)section 356NJ(2) (pre-1 April 2017 loss arising from oil contractor activities);

(b)in paragraph (b) the reference to a deduction under section 463H(5) does not include the deduction of a shock loss.

(3)If the amount of the claimant company's relevant profits for the claim period (calculated in accordance with section 269ZD(5)) is less than the amount of the claimant company's deductions allowance for the claim period (determined in accordance with section 269ZD(6)), subsection (1) has effect as if step 1 was modified as follows—

Step 1 Calculate the claimant company's relevant profits for the claim period in accordance with section 269ZD(5).

(4)If section 269ZD has effect in relation to the claimant company for the claim period with the modifications set out in section 269ZE(1) (special loss cap for insurance companies in certain cases), subsection (1) has effect as if steps 1 and 2 were modified as follows—

  • Step 1 Determine, in accordance with section 269ZE(5), the modified loss cap for the claimant company and the claim period.

  • Step 2 Reduce that amount by the total of any deductions made by the claimant company for the claim period which are deductions within any of paragraphs (a) to (i) and (k) of section 269ZD(3).

(5)Subsection (2) is to be ignored if subsection (3) applies.

Modifications etc. (not altering text)

C1S. 188DD excluded (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 194(2)

188DEPreviously claimed group relief for carried-forward lossesU.K.

(1)To determine the amount of previously claimed group relief for carried-forward losses for the overlapping period—

(a)identify any prior claims for the purposes of this section (see subsection (2)), and

(b)take the steps set out in subsection (3) in relation to each such claim.

The amount of previously claimed group relief for carried-forward losses for the overlapping period is the total of the previously claimed amounts given at step 3 in subsection (3) for all the prior claims.

(2)A claim is a prior claim for the purposes of this section if—

(a)it is a claim under section 188CB or 188CC by the claimant company for group relief for carried-forward losses which would be given by way of a deduction from the company's total profits of the claim period,

(b)it is made before the current claim, and

(c)it has not been withdrawn.

(3)These are the steps referred to in subsection (1)(b) to be taken in relation to each prior claim.

  • Step 1 Identify the overlapping period for the prior claim.

  • Step 2 Identify any period that is common to the overlapping period for the current claim and the overlapping period for the prior claim. If there is a common period, go to step 3. If there is no common period, there is no previously claimed amount in relation to the prior claim (and ignore step 3).

  • Step 3 Determine the previously claimed amount of group relief for carried forward losses in relation to the prior claim (see subsection (4)).

(4)To determine the previously claimed amount of group relief for carried-forward losses in relation to a prior claim—

(a)take the proportion of the overlapping period for the prior claim that is included in the common period identified at step 2 in relation to that claim, and

(b)apply that proportion to the amount of group relief for carried-forward losses given on the prior claim.

The previously claimed amount of group relief for carried-forward losses in relation to the prior claim is the amount given as a result of paragraph (b).

188DFSections 188DC to 188DE: supplementaryU.K.

(1)If two or more claims for group relief for carried-forward losses are made at the same time, for the purpose of section 188DC and 188DE treat the claims as made—

(a)in such order as the company making them may elect or the companies making them may jointly elect, or

(b)if no such election is made, in such order as an officer of Revenue and Customs may direct.

(2)For the purpose of step 3 in each of section 188DC(5) and 188DE(3) the amount of group relief for carried-forward losses given on a prior claim is determined on the basis that relief is given on the claim before it is given on any later claim.

(3)If the use of any proportion mentioned in subsection (4), would, in the circumstances of a particular case, produce a result that is unjust or unreasonable, the proportion is to be modified so far as necessary to produce a result that is just and reasonable.

(4)The proportions are those found in—

(a)section 188DC(2),

(b)section 188DC(6),

(c)step 3 in section 188DD(1), and

(d)section 188DE(4)

188DGSections 188DC and 188DE: meaning of “the overlapping period”U.K.

(1)In sections 188DC and 188DE “the overlapping period”, in relation to a claim for group relief for carried-forward losses, means the period that is common to the claim period and the surrender period (see Requirement 2 in section 188CB(3) and Requirement 2 in section 188CC(3)).

(2)But if during any part of the overlapping period the relief condition is not met, that part is treated as not forming part of the overlapping period but instead as forming—

(a)a part of the surrender period that is not included in the overlapping period, and

(b)a part of the claim period that is not included in the overlapping period.

(3)The relief condition is the condition on which the claim for group relief for carried forward losses is based, that is—

  • the group condition,

  • consortium condition 1,

  • consortium condition 2,

  • consortium condition 3, or

  • consortium condition 4.]

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open The Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act without Schedules as a PDF

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources