A nutty problem

We have a UK parent company client which operates through a number of 100% subsidiary companies situated all over the world.

If one of the companies with dual residency (Brazil and UK) makes losses can we utilise those current year losses as group relief in the UK and still be able to carry the loss forward in the foreign country as well?

I would mention that Brazil does not have a double taxation treaty with the UK. All the companies in the group are trading companies.

Any guidance from Taxation readers would be helpful.

Query 17 688 – Brazil Nut

Reply from ANA

Brazil Nut should confirm that the company is genuinely dual-resident i.e. that it simultaneously satisfies the residence rules of the UK and Brazil; for example if it is incorporated in Brazil but centrally managed and controlled here.

Historically dual-resident companies were established...