Section 107 — Corporation Tax Act 2010: Restriction on losses etc surrenderable by non-UK resident

Restriction on losses etc surrenderable by non-UK resident 107 1 This section applies if the surrendering company is a non-UK resident . company within the charge to corporation tax 1A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 ... The surrendering company may surrender a loss or other amount under this Chapter only so far as conditions A, B and C are met in relation to the loss or other amount.

3 Condition A is that the loss or other amount is attributable to activities of the surrendering company in respect of which it is within the charge to corporation tax for the surrender period.

4 Condition B is that the loss or other amount is not attributable to activities of the surrendering company that are double taxation exempt for the surrender period (see section 186).

5 Condition C is that—

a the loss or other amount does not correspond to, and is not represented in, an amount within subsection (6),

and b no amount brought into account in calculating the loss or other amount corresponds to, or is represented in, an amount within subsection (6).

6 An amount is within this subsection if, for the purposes of non-UK tax chargeable under the law of a territory, the amount is (in any period) deductible from or otherwise allowable against non-UK profits of any person. 6A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 But an amount is not to be taken to be within subsection (6) ... by reason only that it is—

a an amount of profits brought into account for the purpose of being excluded from non-UK profits of the person, or b an amount brought into account in calculating an amount of profits brought into account as mentioned in paragraph (a).

8 Subsection (9) applies for the purposes of subsection (6) if, in order to determine if an amount is deductible or otherwise allowable for the purposes of non-UK tax chargeable under the law of a territory, it is necessary under that law to know if the amount (or a corresponding amount) is deductible or otherwise allowable for tax purposes in the United Kingdom.

9 The amount is to be treated as deductible or otherwise allowable for the purposes of the non-UK tax chargeable under the law of the territory concerned. 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .