CTM34760 - Residence: dual resident companies: group reorganisations

ICTA88/S404, ICTA88/S343 (2), TCGA92/S171 (2), TCGA92/S175 (2), CAA90/S26 (1)(b), CAA90/S77 (1) and CAA90/S158 (3) apply regardless of the position in the other country in which the dual resident investing company is resident. Similar legislation has been enacted in other countries and groups of companies have had to restructure to take account of both the UK and the foreign legislation.

Some dual resident companies managed and controlled in the UK removed the management and control therefrom (special consent under ICTA88/S765 was needed for this unless the first general consent applied - see CTM34380). Others removed the borrowing that gave rise to the loss so that interest costs were borne by a company resident only in the UK. In other cases the borrowing was removed from the dual resident company to a company which was not resident in the UK.

Such changes in group structure sometimes lead to involvement with other UK tax provisions. TCGA92/S178 and TCGA92/S179 or ICTA88/S787 are sometimes involved. Forward any request for advice on a problem of this sort to CT&VAT, International CT.