Section 676CE | Exceptions to restrictions ^F1

(1)Nothing in section 676CB(3) or 676CC affects the giving of group relief for carried-forward losses by the making of a deduction under section 188CK(1) from total profits of the claimant company which arise after the 5th anniversary of the end of the accounting period of the transferred company in which the change in ownership occurs.

(2)Nothing in section 676CB(3) or 676CC affects the availability of relief under Part 5A if immediately before the change in ownership the group condition was met in relation to the transferred company and the claimant company.But see also section 676CF.

(3)If an accounting period of the claimant company begins before, and ends after, the anniversary mentioned in subsection (1), then for the purposes of that subsection—

(a)the accounting period is treated as two separate accounting periods, the first ending with that date and the second consisting of the remainder of the period, and

(b)the profits or losses of the accounting period are apportioned to the two periods.

(4)Any apportionment under subsection (3)(b) is to be made on a time basis according to the respective lengths of the two periods.

(5)But if that method of apportionment would work unjustly or unreasonably in any case, such other method is to be used as is just and reasonable.

(6)In this section “the claimant company” has the same meaning as in Part 5A (see section 188FD(1)).