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HMRC internal manual

International Manual

From
HM Revenue & Customs
Updated
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Reliefs against Controlled Foreign Companies' tax: Restriction on relief claims

A claim to relief under ICTA88/SCH26/PARA1 should not be admitted to the extent that it includes an amount of a relevant allowance which has been used in some other way. If, for example, a company has already surrendered its losses as group relief or carried them back against the profits of an earlier accounting period under CTA10/S37(3), it may not subsequently withdraw the surrender or the carry-back and use the losses to reduce a Chapter IV assessment. This also applies to groups operating under simplified return provisions such as the Joint Amended Return rules. In all such cases an amendment constitutes a withdrawal and replacement of a claim and is subject to the same constraint as a formal withdrawal.

If, however, a company carries forward a loss under CTA10/S45 (previously ICTA88/S393(1)), and all or any part of that loss has not yet been relieved against future profits, those losses may be relieved against a Chapter IV liability for the accounting period in which the losses arose.