Part 5 Group relief

Chapter 2 Surrender of company's losses etc for an accounting period

Restrictions on losses and other amounts that may be surrendered

108 Meaning of “non-UK profits”
(1) In sections 106 and 107 “non-UK profits”, in relation to a person, means—
(a) amounts within subsection (2), or
(b) amounts taken into account in calculating amounts within subsection (2).
(2) Amounts are within this subsection if they—
(a) are taken for the purposes of the non-UK tax in question to be the amount of the profits, income or gains on which (after allowing for deductions) the person is charged with that tax, and
(b) are not amounts corresponding to, and are not represented in, the total profits of any person of any accounting period.
(3) For the purposes of subsection (2)(b) amounts that arise from activities of a non-UK resident company that are double taxation exempt for an accounting period (see section 186) are excluded from the company's total profits of that period.