Corporation Tax Act 2010 section 115

The EEA tax loss condition: companies resident in EEA territory

Section 115 sets out the conditions that must be met for a company resident in the European Economic Area to establish a qualifying EEA tax loss for the purposes of group relief.

• This section applies specifically to companies that are resident in an EEA territory — companies with an EEA permanent establishment are dealt with separately under section 116.
• The key condition is that the loss amount must have arisen for tax purposes under the tax law of the relevant EEA territory in which the company is resident.
• Any loss amount that is attributable to a permanent establishment in the United Kingdom is excluded from this provision.
• Losses attributable to a UK permanent establishment may instead qualify for group relief under the standard domestic rules in Chapter 2.