CTM80335 - Groups: group relief: meaning of foreign tax

ICTA88/S403D (9), ICTA88/S403E (7)

For the purposes of group relief in respect of the losses of permanent establishments ( CTM80310) and determining whether tax relief is available in an overseas jurisdiction ( CTM80315) ‘foreign tax’ means any tax chargeable under the laws of that jurisdiction which is:

• charged on income and is analogous to UK IT, or
• charged on income and/or chargeable gains and is analogous to UK CT.

Note that where a country has territorial sub-divisions such as states or provinces, tax levied under the law of that sub-division is foreign tax. The same applies to taxes levied by or for local authorities, municipalities and the like.