CTM34510 - Residence: dual resident companies: legislation

ICTA88/S404 sets out what is meant by dual residence and defines the type of dual resident company (dual resident investing company) caught by the legislation. With effect from 1 April 1987, no loss or other amount is available for set-off if the company which would have been the surrendering company is a dual resident investing company. ICTA88/S343 (2), TCGA92/S171 (2), TCGA92/S175 (2), CAA90/S26 (1)(b), CAA90/S77 (1) and CAA90/S158 (3) deny access to certain other types of relief's in dealings involving dual resident investing companies. This is to prevent a dual resident investing company obtaining double relief for its losses by some other means. ICTA88/SCH17 contains rules to cover:

• accounting periods that straddle the commencement date of 1 April 1987, and
• provisions to stop attempts to forestall the commencement of legislation.