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
(1)This section applies if—
(a)the claimant company makes a claim under section 188CB for group relief for carried-forward losses, and
(b)the claim is based on consortium condition 1.
(2)The relief to be given on the claim is limited to the ownership proportion of the claimant company's relevant maximum for the overlapping period (see section 188DD to determine the claimant company's relevant maximum for the overlapping period).
(3)The ownership proportion is the same as the lowest of the following proportions prevailing during the overlapping period—
(a)the proportion of the ordinary share capital of the claimant company that is beneficially owned by the surrendering company,
(b)the proportion of any profits available for distribution to equity holders of the claimant company to which the surrendering company is beneficially entitled,
(c)the proportion of any assets of the claimant company available for distribution to such equity holders on a winding up to which the surrendering company would be beneficially entitled, and
(d)the proportion of the voting power in the claimant company that is directly possessed by the surrendering company.
(4)If any of the proportions in subsection (3) changes during the overlapping period, use the average of that proportion during that period.
(5)If the claimant company is owned by the consortium company as a result of section 153(3) (consortium company involving holding companies), references in subsection (3) to the claimant company are to be read as references to the holding company in question.
(6)In this section “the overlapping period” is to be read in accordance with section 188DG.
(7)Chapter 6 of Part 5 (equity holders and profits or assets available for distribution) applies for the purposes of subsection (3)(b) and (c).]