SCHEDULES

SCHEDULE 18A

Part 1Meaning of conditions for the purposes of section 403F

Qualifying relief for future periods

7

(1)

For the purposes of paragraph 5, an amount cannot be given qualifying relief for any period after the current period if conditions A and B are met.

(2)

Condition A is that, for the purposes of any tax under the EEA territory concerned or under any relevant territory, the amount cannot be taken into account in calculating any profits, income or gains which—

(a)

might arise to the company or any other person in any period after the current period, and

(b)

(if there were any) would be chargeable to that tax for any period after the current period.

(3)

Condition B is that, for the purposes of any tax under the EEA territory concerned or under any relevant territory, the amount cannot be relieved in any period after the current period—

(a)

by the payment of a credit,

(b)

by the elimination or reduction of a tax liability, or

(c)

by any other means of any kind.

(4)

In determining for the purposes of conditions A and B whether an amount can be so taken into account or relieved, the time at which the determination is to be made is the time immediately after the end of the current period.

(5)

In this paragraph “relevant territory” means—

(a)

if the company is resident in any EEA territory and is also resident in any other territory outside the United Kingdom, that other territory,

(b)

if the company is not resident in any EEA territory but carries on a trade in an EEA territory through a permanent establishment, the territory (or territories) in which it is resident.