PM131600 - EEIGs: background information

S842 Income Tax Act 2007, S990 Corporation Tax Act 2010

A European Economic Interest Grouping (EEIG) is a form of business entity governed by EU regulation, under Regulation (EEC) No 2137/85. The EEIG regulation aims to minimise the legal, fiscal and psychological difficulties that individuals, companies, companies, partnerships and other bodies face in cooperating across borders of two or more member states of the EU or the European Economic Area. Through grouping the economic activities of its members their resources, activities and skills can be facilitated or developed enabling entities to produce better results than the members acting alone.

For the purposes of UK taxation of profits or losses an EEIG is fiscally transparent. Any trade or profession carried on by an EEIG is treated as carried on in partnership by its members. An EEIG that has registered its official address in the UK is a body corporate with a legal personality.