The Double Taxation Relief (Surrender of Relievable Tax Within a Group) (Amendment) Regulations 2008, SI 2008/2681 were made on 9 October 2008. The regulations come into force on 30 October 2008. They have effect in relation to accounting periods beginning on or after 1 January 2008, and ending after 30 October 2008.

SI 2008/2681 amends the Double Taxation Relief (Surrender of Relievable Tax Within a Group) Regulations 2001, SI 2001/1163.

SI 2001/1163 provides for the surrender between group companies of "eligible unrelieved foreign tax" (EUFT). Regulation 4 thereof provides for the amount of EUFT available for surrender. In respect of companies carrying on life assurance business, the amount eligible for set-off is calculated by reference to section 89(1B) of the Finance Act 1989.

Following the repeal of section 89(1B) by the Finance Act 2008, the relevant provision is now contained in section 431(2YB) of the Income and Corporation Taxes Act 1988. SI 2008/2681 amends SI 2001/1163 by substituting a reference to the Income and Corporation Taxes Act 1988.

Group relief for overseas losses – regulations for non-resident insurance companies published

The Group Relief for Overseas Losses (Modification of the Corporation Tax Acts for Non-resident Insurance Companies) Regulations 2008, SI 2008/2646 were made on 7 October 2008. The regulations have effect for accounting periods beginning on or after 28 October 2008.

SI 2008/2646 replaces the Group Relief for Overseas Losses (Modification of the Corporation Tax Acts for Non-resident Insurance Companies) (No 2) Regulations 2006, SI 2006/3389.

The effect of the regulations is to align the tax treatment of certain non-resident insurance companies with those of special purpose vehicles. The regulations apply to insurance companies carrying on life insurance or general insurance business, resident in an EEA territory, or carrying on a trade in an EEA territory through a permanent establishment.

Following the judgment of the European Court of Justice in Marks & Spencer Plc. V. Halsey, the Finance Act 2006 extended the group loss relief provisions to apply to EEA companies in certain circumstances. That Act also provided for regulations to be made modifying its provisions.

SI 2006/3389 modified, in relation to insurance companies, provisions introduced by the Finance Act 2006. However, most of the provisions of those regulations are no longer necessary, as other rules have been made to replace them. However, SI 2006/3389 also ensured the availability of an appropriate basis for determining the loss made by an EEA life insurance company. SI 2008/2646 ensures that this basis remains appropriate.