Section 183 | Payments for group relief

(1)This section applies if—

(a)the surrendering company and the claimant company have an agreement between them in relation to losses and other amounts of the surrendering company (“the agreed loss amounts”),

(b)group relief is given to the claimant company in relation to the agreed loss amounts, and

(c)as a result of the agreement the claimant company makes a payment to the surrendering company that does not exceed the total amount of the agreed loss amounts.

(2)The payment—

(a)is not to be taken into account in determining the profits or losses of either company for corporation tax purposes, and

(b)for corporation tax purposes is not to be regarded as a distribution.