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22 October 2000
Section 765, Taxes Act 1988 requires United Kingdom companies with overseas subsidiaries to obtain the consent of the Treasury before certain transactions involving those subsidiaries are carried out.
Consent may be given specially or generally. For the former, application must be made to the Treasury. For the latter no application is necessary and the transactions to which consent is given generally are described in 'The Treasury Consents 1988'.
Consent may be given specially or generally. For the former, application must be made to the Treasury. For the latter no application is necessary and the transactions to which consent is given generally are described in 'The Treasury Consents 1988'.
Section 765, Taxes Act 1988 requires United Kingdom companies with overseas subsidiaries to obtain the consent of the Treasury before certain transactions involving those subsidiaries are carried out.
Consent may be given specially or generally. For the former, application must be made to the Treasury. For the latter no application is necessary and the transactions to which consent is given generally are described in 'The Treasury Consents 1988'.
The Treasury General Consents adapt certain definitions used elsewhere in the Taxes Acts, including the definition of a group for group relief purposes. As a result of changes in Finance Act 2000 to the definition of group for group relief purposes, a number of changes have been made to the definitions of groups for the purposes of the Treasury General Consents. For transactions carried out on or after 28 July 2000 overseas group means:
'Two or more companies, including the non-resident company, which are not resident in the United Kingdom and which
(a) are liable to tax in the same territory outside the United Kingdom by reason of domicile, residence or place of management, and
(b) would be deemed to be members of a group of companies for the purposes of Chapter IV of Part X of the Taxes Act 1988.'
Territorial group means:
'Two or more companies which are not resident in the United Kingdom and which
(a) are liable to tax in the same territory outside the United Kingdom by reason of domicile, residence or place of management, and
(b) would be deemed to be members of a group of companies for the purposes of Chapter IV of Part X of the Taxes Act 1998.'
Resident group means:
'Those companies, including the resident company, which are resident in the United Kingdom and which are deemed to be members of a group of companies for the purposes of Chapter IV of Part X of the Taxes Act 1988.'
Additionally, reference to section 258, Taxes Act at paragraph 2(3) of the Treasury General Consents 1988 is now a reference to Chapter IV of Part X of the Taxes Act 1988.
Consent may be given specially or generally. For the former, application must be made to the Treasury. For the latter no application is necessary and the transactions to which consent is given generally are described in 'The Treasury Consents 1988'.
The Treasury General Consents adapt certain definitions used elsewhere in the Taxes Acts, including the definition of a group for group relief purposes. As a result of changes in Finance Act 2000 to the definition of group for group relief purposes, a number of changes have been made to the definitions of groups for the purposes of the Treasury General Consents. For transactions carried out on or after 28 July 2000 overseas group means:
'Two or more companies, including the non-resident company, which are not resident in the United Kingdom and which
(a) are liable to tax in the same territory outside the United Kingdom by reason of domicile, residence or place of management, and
(b) would be deemed to be members of a group of companies for the purposes of Chapter IV of Part X of the Taxes Act 1988.'
Territorial group means:
'Two or more companies which are not resident in the United Kingdom and which
(a) are liable to tax in the same territory outside the United Kingdom by reason of domicile, residence or place of management, and
(b) would be deemed to be members of a group of companies for the purposes of Chapter IV of Part X of the Taxes Act 1998.'
Resident group means:
'Those companies, including the resident company, which are resident in the United Kingdom and which are deemed to be members of a group of companies for the purposes of Chapter IV of Part X of the Taxes Act 1988.'
Additionally, reference to section 258, Taxes Act at paragraph 2(3) of the Treasury General Consents 1988 is now a reference to Chapter IV of Part X of the Taxes Act 1988.
