CTM80360 - Groups: group relief: overseas permanent establishment of UK resident company: meaning of tax relief in a foreign jurisdiction

ICTA88/S403E (2) and (7), ICTA88/S403D (3) and (9)

For general guidance on the restriction of losses and other amounts that can be surrendered as group relief by a UK resident company that trades through an overseas permanent establishment see CTM80350.

The restriction applies where any person, other than the UK resident company, can:

• deduct from non-UK profits ( CTM80330) any part of the loss etc., or an amount representing any part of the loss, for the purposes of foreign tax ( CTM80335) in the jurisdiction where the permanent establishment is situate, or
• otherwise get relief in respect of the loss etc. (by allowance against non-UK profits) from foreign tax in that jurisdiction.

Where the deductibility of the loss etc. in the foreign jurisdiction depends on whether it can be deducted in the UK see CTM80365.