Section 188DK | Conditions 1 and 2: claimant company not controlled by surrendering company etc

(1)This section applies if—

(a)the claimant company makes a claim under section 188CB for group relief for carried-forward losses,

(b)the claim is based on consortium condition 1, and

(c)during any part of the overlapping period, arrangements within subsection (3) are in place which enable a person to prevent the surrendering company, either alone or together with one or more other companies that are members of the consortium, from controlling the claimant company.

(2)This section also applies if—

(a)the claimant company makes a claim under section 188CB for group relief for carried-forward losses,

(b)the claim is based on consortium condition 2, 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 claimant 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 claimant 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 claimant company's relevant maximum for the overlapping period was 50% of what it would be but for this section (see section 188DD to determine the claimant company's relevant maximum for the overlapping period).

(5)In this section “the overlapping period” is to be read in accordance with section 188DG

(6)Section 1139 (“tax advantage”) applies for the purposes of this section.