SCHEDULE 18AGroup relief: overseas losses of non-resident companies
Part 1Meaning of conditions for the purposes of section 403F
Precedence condition
9
(1)
This paragraph applies in the case of a non-resident company (“the relevant company”)—
(a)
which is resident in any EEA territory, or
(b)
which is not so resident but which carries on a trade in an EEA territory through a permanent establishment.
(2)
An amount meets the precedence condition in relation to the EEA territory concerned in so far as relief for the amount cannot be given in any other territory outside the United Kingdom which is a qualifying territory in relation to the relevant company.
(3)
For this purpose a territory is a qualifying territory in relation to the relevant company if—
(a)
another company is resident in that territory (which need not be an EEA territory),
(b)
that other company owns directly or indirectly any ordinary share capital in the relevant company,
(c)
a third company which is resident in the United Kingdom owns directly or indirectly any ordinary share capital of that other company,
(d)
the relevant company is a 75 per cent. subsidiary of that third company, and
(e)
the relevant company is not a 75 per cent. subsidiary of that third company as a result of its being a 75 per cent. subsidiary of a fourth company which is resident in the United Kingdom.
(4)
In this paragraph references, in relation to any amount and any territory, to relief being given for the amount in the territory are to relief being given—
(a)
by taking the amount into account in calculating any profits, income or gains of any person chargeable to tax under the law of that territory,
(b)
by the payment of a credit to any person under the law of that territory,
(c)
by the elimination or reduction of a tax liability of any person under the law of that territory, or
(d)
by any other means of any kind.
(5)
“The EEA territory concerned” means the EEA territory in which the relevant company is resident or (as the case may be) in which it carries on a trade through a permanent establishment.