CTM34760 | Residence: dual resident companies: group reorganisations

CTA10/S109 and the other provisions listed at CTM34505 apply regardless of the position in the other state in which the dual resident investing company is resident. Similar legislation has been enacted in other states and groups of companies have needed to restructure to take account of both the UK and the foreign legislation.

Some dual resident companies managed and controlled in the UK moved their management and control in response (special consent under ICTA88/S765 was needed for this unless the first general consent applied, CTM34380. Others removed the borrowing that gave rise to the loss so that interest costs were borne by a company resident only in the UK. In other cases the borrowing was removed from the dual resident company to a company which was not resident in the UK.

Such changes in group structure sometimes trigger other UK tax provisions. TCGA92/S179 (company leaving group) and CTA09/S443 (restriction of interest relief where scheme involved) are examples. (This content has been withheld because of exemptions in the Freedom of Information Act 2000).