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HMRC internal manual

Company Taxation Manual

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HM Revenue & Customs
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Groups: group relief: UK permanent establishment of non-resident company - amounts which can be surrendered

CTA10/S107(3) and CTA10/S5(2) & CTA10/S19

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.

CTA10/S107 does not overtly limit what types of amount can be surrendered (CTM80110).  However S107(3) requires that a loss or other amount must be ‘attributable to activities of the surrendering company in respect of which it is within the charge to corporation tax’.

So if profits from the activity would not fall within CTA10/S5(2) and CTA10/S19, 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.