Corporation Tax Act 2010 section 136

The EEA group condition

Section 136 sets out the condition that must be met for group relief to be surrendered by a company that is related through an EEA (European Economic Area) group structure.

• This section applies where a surrendering company is connected to a claimant company through an EEA group arrangement rather than a standard UK group relationship.
• The EEA group condition requires that either the claimant company itself is UK resident, or that the company which owns both the claimant and the surrendering company is UK resident.
• This ensures there is always a UK-resident company within the ownership chain, providing a connection to the UK tax system before group relief can be claimed.
• The condition acts as a safeguard to prevent group relief being available in wholly overseas group structures with no genuine UK tax presence.