Section 188EI | Condition 4: companies in link company's group ^F1

(1)Where—^F1

(a)the claimant company makes a claim under section 188CC, and^F1

(b)the claim is based on consortium condition 4^F1

the amount of relief to be given on the claim is limited by subsections (2) and (3).

(2)There is a limit on the amount of group relief for carried-forward losses that can be given, in total, on relevant consortium claims made by the link company and group companies.^F1

(3)That limit is the maximum amount of group relief for carried-forward losses that could be given to the link company on relevant consortium claims—^F1

(a)assuming that no relevant consortium claims were made by group companies based on consortium condition 4,^F1

(b)assuming that the link company was UK related, and^F1

(c)ignoring any lack of profits of the link company from which deductions could be made as mentioned in section 188CK(1).^F1

(4)In this section—^F1

“consortium claim” means a claim made under section 188CC for group relief for carried-forward losses,

“group company” means a company that is a member of the same group of companies as the link company (other than the link company),

“relevant consortium claim” means a consortium claim in relation to which the surrendering company, the surrender period and the specified loss-making period are the same as is the case for the claim mentioned in subsection (1), and

“UK related”, in relation to a company, has the meaning given by section 188CJ.