Corporation Tax Act 2010 section 179

Cases in which surrendering or claimant company is non-UK resident

Section 179 introduces special rules that apply when either the company surrendering losses or the company claiming group relief is not UK resident, and the equity holders' rights are linked to the non-resident company's UK trading activities.

• Where either the surrendering or claimant company is non-UK resident, special rules under section 180 may apply to modify how equity holders' entitlements are assessed
• The special rules apply when determining whether a non-UK resident company is owned by a consortium for group relief purposes
• The special rules also apply when determining whether a non-UK resident company qualifies as a 75% or 90% subsidiary of another company
• Two specific cases trigger the rules: where equity holders have distribution rights linked to the non-resident company's UK trade, or where option arrangements produce different results depending on how profits or assets relate to the UK trade