CTM80345 - Groups: group relief: UK permanent establishment of non-resident company - amounts which can be surrendered
ICTA88/S403D (1)(a) and ICTA88/S11 (2) & (2A)
For general guidance about the surrender as group relief of losses and other amounts of a UK permanent establishment of a non-resident company see CTM80310.
ICTA88/S403D does not overtly limit what types of amount can be surrendered (CTM80110). However Section 403D (1)(a) requires that a loss or other amount must be ‘attributable to activities’ which, if profitable, would be within the charge to CT.
So if profits from the activity would not fall within ICTA88/S11 (2) & (2A), a loss or other amount attributable to the activity cannot be surrendered as group relief, notwithstanding it falls into one of the categories set out in CTM80110.