# Corporation Tax Act 2010, Section 188EF: The potential Part 5 group relief amount


(1) 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.
(2) The fraction referred to in step 3 is—
ABwhere—
A is the sum of the losses or other amounts within section 99(1)(a), (c), (e), (f) and (g) which the surrendering company had for the specified loss-making period, and
B is the sum of the losses or other amounts within section 99(1) (a) to (g) which the surrendering company had for the specified loss-making period.
(3) 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.
(4) 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.

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Source: https://www.legislation.gov.uk/ukpga/2010/4/section/188EF (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2010/section-188EF
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.