Chapter 22 example 6

Hi

Page 133 of the notes, Ch 22 example 6

According to the answers (p 205) the b/w loss of £7,500 in S Ltd cannot be used as it is not available for group relief.

I understand this, however, why could the b/w £7,500 not be used against S Ltd. profits?

This would then mean only £12,500 of current year relief is required to bring TTP down to the adjusted lower limit in S Ltd., which would mean an extra £7,500 in group relief that could eventually used in E Ltd.

I understand that b/w losses cannot be used in group relief, but do not see why they could not be used against the S Ltd. losses in this example.

Many thanks in advance