Section 188EC | Unused part of surrenderable amounts attributable to specified loss-making period ^F1

(1)The unused part of the surrenderable amounts that are attributable to the specified loss-making period is the amount equal to—^F1

(a)the surrenderable amount for the overlapping period (see subsection (2)), less^F1

(b)the amount of prior surrenders for that period (see subsections (3) to (5)).^F1

(2)To determine the surrenderable amount for the overlapping period—^F1

(a)take the proportion of the surrender period included in the overlapping period, and^F1

(b)apply that proportion to the surrenderable amounts for the surrender period that are attributable to the specified loss-making period.^F1

The surrenderable amount for the overlapping period is the amount given as a result of paragraph (b).

(3)To determine the amount of prior surrenders for the overlapping period—^F1

(a)identify any prior claims for the purposes of this section (see subsection (4)), and^F1

(b)take the steps set out in subsection (5) in relation to each such claim.^F1

The amount of prior surrenders for the overlapping period is the total of the previously used amounts given at step 3 in subsection (5) for all the prior claims.

(4)A claim is a prior claim for the purposes of this section if—^F1

(a)it is either—^F1

(i)a claim under section 188CB by any company which relates to the amounts to which the current claim relates (as well as any other amounts), or^F1

(ii)a claim under section 188CC by any company which relates to the same amounts to which the current claim relates,^F1

(b)it is made before the current claim, and^F1

(c)it has not been withdrawn.^F1

(5)These are the steps referred to in subsection (3)(b) to be taken in relation to each prior claim.^F1

Step 1 Identify the overlapping period for the prior claim.

Step 2 Identify any period that is common to the overlapping period for the current claim and the overlapping period for the prior claim. If there is a common period, go to step 3. If there is no common period, there is no previously used amount in relation to the prior claim (and ignore step 3).

Step 3 Determine the previously used amount of group relief for carried-forward losses in relation to the prior claim (see subsections (6) to (8)).

(6)To determine the previously used amount of group relief for carried-forward losses in relation to a prior claim made under section 188CB—^F1

Step 1 Take the proportion of the overlapping period for the prior claim that is included in the common period identified at step 2 in subsection (5) in relation to that claim.

Step 2 Apply that proportion to the amount of group relief for carried-forward losses given on the claim.

Step 3 Multiply the amount arrived at under step 2 by the fraction set out in subsection (7).

(7)The fraction is—^F1

(8)To determine the previously used amount of group relief for carried-forward losses in relation to a prior claim made under section 188CC—^F1

(a)take the proportion of the overlapping period for the prior claim that is included in the common period identified at step 2 in subsection (5) in relation to that claim, and^F1

(b)apply that proportion to the amount of group relief for carried-forward losses given on the prior claim.^F1

The previously used amount of group relief for carried-forward losses in relation to the prior claim is the amount given as a result of paragraph (b).