BIM72160 - Partnerships: EEIGs: background information

A European Economic Interest Grouping is a form of business entity introduced by an EEC regulation from 1 July 1989. The members of an EEIG may be companies, individuals or partnerships from two or more member states of the EC. From 1 January 1994, subject to ratification by the Governments of the states concerned, members may also be from EEA countries. ICTA88/S510A ensures that, for the purposes of UK taxation of profits or losses, an EEIG is fiscally transparent. Profits will be taxable and losses allowable only in the hands of members of the EEIG. An EEIG that has registered its official address in the UK is a body corporate with a legal personality. Expanded guidance on EEIGs is available in the EEIG manual.