Corporation Tax Act 2010 section 188DF

Sections 188DC to 188DE: supplementary

Section 188DF provides supplementary rules for the ordering and processing of multiple simultaneous claims for group relief for carried-forward losses, and allows for adjustment where standard proportioning rules produce unfair results.

• Where two or more claims for group relief for carried-forward losses are made at the same time, they are treated as made in the order elected by the company or companies, or as directed by HMRC if no election is made
• Relief on an earlier claim is always treated as having been given before relief on any later claim, ensuring a clear sequential calculation
• Where the standard proportioning calculations used in the limitation rules would produce an unjust or unreasonable result, they must be modified to achieve a just and reasonable outcome
• The proportioning calculations that may be modified are those found in sections 188DC(2), 188DC(6), step 3 in section 188DD(1), and section 188DE(4)