PART X LOSS RELIEF AND GROUP RELIEF

C1C2C3CHAPTER IV GROUP RELIEF

Annotations:
Modifications etc. (not altering text)
C1

See—1988 s.434A—limitations on group relief for life assurance company.1989 s.102—surrender of company tax refund etc. within group (from a day to be appointed not earlier than 31March 1992).

C3

Pt. 10 Ch. 4: The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), reg. 35 to be construed as one with this Chapter (6.4.2006) by virtue of regs. 1, 35(2) of that affecting S.I.

F1403GUnallowable overseas losses of non-resident companies

1

This section applies in the case of a loss or other amount arising to a non-resident 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,

where the amount is not attributable for corporation tax purposes to any UK permanent establishment of the non-resident company.

2

The amount is not available for surrender by way of group relief by the non-resident company in so far as conditions A and B are met.

3

Condition A is that—

a

the amount would not qualify for group relief but for any relevant arrangements, or

b

the amount would not have arisen to the non-resident company but for any relevant arrangements.

4

Condition B is that the main purpose, or one of the main purposes, of the relevant arrangements was to secure that the amount would qualify for group relief.

5

In this section references to relevant arrangements, in relation to any amount, are to—

a

arrangements made on or after 20th February 2006, or

b

arrangements made before that date where the amount would (but for this section) first qualify for group relief on or after that date or (as the case may be) the amount arises on or after that date.

6

In this section—

  • “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable),

  • “UK permanent establishment”, in relation to the non-resident company, means any permanent establishment through which it carries on a trade in the United Kingdom.