CTM81505 - Groups: group relief: surrendering company not UK resident: companies affected
CTA10/S112, S136
Who can claim
The extension to group relief can be claimed by:
- a UK resident company of which the surrendering company is a 75% subsidiary; or
- any other UK resident 75% subsidiary of such a UK parent company.
Where the surrendering company is a 75% subsidiary of more than one UK resident company, then a loss may be claimed under the new rules by any of those companies (or by any other UK resident 75% subsidiary of those companies).
The definition of a 75% subsidiary is the same as that used for the existing group relief rules which is in CTA10/S1154(3). There is detailed guidance at CTM80510.
Who can surrender
A foreign 75% subsidiary of a qualifying claimant company with a foreign tax loss (CTM81520) where that subsidiary:
- is either resident in the European Economic Area (EEA); or
- is not resident in any EEA territory but is carrying on a trade in an EEA territory through a permanent establishment and the loss was incurred in that permanent establishment.
Losses attributable to a UK permanent establishment of the surrendering company are excluded from the new rules. The existing group relief rules continue to apply to such losses, (CTM80310).