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

(1)Where—

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

(b)the claim is based on consortium condition 4

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.

(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—

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

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

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

(4)In this section—

“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.