Introduction Equity holders Overview Section 109: Restriction on losses etc surrenderable by dual resident
400.This section restricts the relief available to dual resident investing companies. It is based on section 404 of ICTA.
401.Subsections (1) and (2) are the basic rule. A company that is resident both in the United Kingdom and in another country may not surrender losses etc as group relief. But the rule applies only to investing companies, a concept that is defined in the following subsections.
402.Subsection (3) defines the first sort of company to which the section applies. It is a company that does not carry on a trade.
403.Subsection (4) defines the second sort of company to which the section applies. It is a trading company whose activities are of a sort more usually associated with an investment business.
404.Subsection (5) defines the third sort of company to which the section applies. The rule prevents an investing company being “dressed up” as a trading company.