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HMRC internal manual

Company Taxation Manual

Groups: group relief: overseas permanent establishment of UK resident company - meaning of non-UK tax relief


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 (CTM80320) any part of the loss etc., or an amount representing any part of the loss, for the purposes of non-UK tax (CTM80325) 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 non-UK 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.