Section 188EF The potential Part 5 group relief amountF1

The potential Part 5 group relief amount is determined as follows—

• Step 1 Calculate the maximum amount of group relief that could have been given to the claimant company under Part 5 in relation to losses or other amounts within section 99(1) which the surrendering company had for the specified loss-making period. In applying this step, ignore any lack of profits of the claimant company from which deductions could have been made as mentioned in section 137(1).

• Step 2 Deduct from the amount arrived at under step 1 the amount of any group relief actually given to the claimant company under Part 5 in relation to losses or other amounts within section 99(1) which the surrendering company had for the specified loss-making period.

• Step 3 Multiply the amount arrived at following step 2 by the fraction in subsection (2).

• Step 4 Deduct from the amount arrived at following step 3 any group relief for carried-forward losses previously given to the claimant company on claims under section 188CC which are related to the current claim.

The fraction referred to in step 3 is—

where—

References in subsection (2) to losses or other amounts are references to losses or other amounts only in so far as they were eligible for surrender under Chapter 2 of Part 5.

A claim under section 188CC is related to the current claim if the surrendering company and the specified loss-making period are the same in relation to both claims.