CTM81550 - Groups: group relief: surrendering company not UK resident: amount of the loss: the unallowable loss rule

CTA10/S127

»Ê¹ÚÌåÓýapp extended loss relief rules identify a specific category of loss for which UK group relief will now be available.

A UK resident company may be eligible to claim as group relief losses arising from a 75% subsidiary resident in another European Economic Area (EEA). And those losses may have met the four conditions at CTM81510:

  • the equivalence condition,
  • the EEA tax loss condition,
  • the qualifying loss condition, and
  • the precedence condition.

However there is potential for a group to make arrangements, which it would not otherwise have made, in order to obtain group relief in the UK. »Ê¹ÚÌåÓýapp unallowable loss rules therefore applied, from 20 February 2006, to deny relief for losses, which have arisen insuch circumstances, (CTM81555).