F1PART 5AGroup relief for carried-forward losses
CHAPTER 5Limitations on relief: claims under section 188CC
Further limitations on amount of relief that apply in particular cases
188EJCondition 3 or 4: surrendering company not controlled by claimant company etc
1
This section applies if—
a
the claimant company makes a claim under section 188CC for group relief for carried-forward losses,
b
the claim is based on consortium condition 3, and
c
during any part of the overlapping period, arrangements within subsection (3) are in place which enable a person to prevent the claimant company, either alone or together with one or more other companies that are members of the consortium, from controlling the surrendering company.
2
This section also applies if—
a
the claimant company makes a claim under section 188CC for group relief for carried-forward losses,
b
the claim is based on consortium condition 4, and
c
during any part of the overlapping period, arrangements within subsection (3) are in place which enable a person to prevent the link company, either alone or together with one or more other companies that are members of the consortium, from controlling the surrendering company.
3
Arrangements are within this subsection if—
a
the company, either alone or together with one or more other companies that are members of the consortium, would control the surrendering company, but for the existence of the arrangements, and
b
the arrangements form part of a scheme the main purpose, or one of the main purposes, of which is to enable the claimant company to obtain a tax advantage under this Chapter.
4
The relief to be given on the claim is to be determined as if the surrenderable amount for the overlapping period were 50% of what it would be but for this section (see section 188EC(2) to determine the surrenderable amount for the overlapping period).
5
In this section “the overlapping period” is to be read in accordance with section 188EH.
6
Section 1139 (“tax advantage”) applies for the purposes of this section.
Pt. 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