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.