CTM80365 - Groups: group relief: overseas permanent establishment of UK resident company: foreign ‘tie-breaker’ rules

ICTA88/S403E (8)

For guidance about tax relief in a foreign jurisdiction for the purposes of ICTA88/S403E see CTM80360.

Sometimes the rules of a foreign jurisdiction turn on whether a loss or other amount of a surrendering company, or an equivalent amount, is deductible for tax purposes in the UK. In such a case, the loss or other amount is only treated as deductible in the foreign jurisdiction if that jurisdiction treats the surrendering company as a resident for tax purposes.