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CTM82040 | Corporation Tax: Group relief for carried-forward losses: Restrictions for certain types of insurance company

From HM Revenue & Customs · Company Taxation Manual

If the surrendering company is a general insurance company for which the surrender period is an excluded accounting period, the following types of loss may not be surrendered as group relief for carried-forward losses:

  • Non-trading loss on intangible fixed assets (CTA09/S753(3)) (CTM80141)

  • Expenses of management of an investment company (CTA09/S1223) (CTM80140)

  • UK property business losses (CTA10/S62(5)(a) and S63(3)(a)) (CTM80135)

  • Carried-forward trading losses and non-trading loan relationship deficits may not be surrendered as group relief either. These losses are allowed only under CTA10/S45B and CTA09/S463H and are not included in the list in s188BB of carried-forward losses that may be group relieved.

If the surrendering company is a Solvency 2 insurance company, the types of loss which may not be surrendered as group relief for carried-forward losses are as for a general insurance company above. However the loss is only restricted as far as the loss is, or expenses are, a shock loss (CTA10/S269ZK).

The definition of general insurance company and the definition of excluded accounting period are both found at CTA10/S269ZG.For the purposes of group relief for carried-forward losses, a Solvency 2 insurance company is an insurance company as defined at CTA10/269ZP(2).