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CTM82050 | Corporation Tax: Group relief for carried-forward losses: Restrictions on companies with permanent establishments or dual residence

From HM Revenue & Customs · Company Taxation Manual

There are restrictions on the amount of group relief for carried-forward losses that may be surrendered by certain companies with permanent establishments or dual residence. These correspond with the restrictions for group relief under CTA10/Part 5.

Restriction when surrendering company is UK resident with overseas permanent establishment

There is a restriction on the losses that may be surrendered as group relief for carried-forward losses by a UK resident company which trades through an overseas permanent establishment (CTM80350).

Restriction when surrendering company is non-UK resident with UK permanent establishment

Non-UK resident companies that trade in the UK through a permanent establishment, or carry on a trade of dealing in or developing UK land, are subject to a restriction on the amount of loss or other amount they may surrender as group relief for carried-forward losses.

There are different rules for companies that were established within the European Economic Area (EEA) during the period in which the loss was made and companies that were not (CTM80310).

Restriction when surrendering company is dual resident

The restriction that applies to a dual resident surrendering company for group relief purposes also applies to group relief for carried-forward losses (CTM34600).