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.