These Regulations provide for the surrender of eligible unrelieved foreign tax (“EUFT”) by one company in a group to another.

Regulation 1 provides for citation, commencement and effect, and regulation 2 for interpretation.

Regulation 3 introduces regulations 4 to 10.

Regulation 4 provides for the amount of EUFT that may be surrendered.

Regulation 5 provides for the claiming and utilisation of EUFT by the claimant company.

Regulation 6 provides that the surrendering company and the claimant company must be members of the same group throughout the accounting period of the surrendering company in which the EUFT available for surrender arises, and also provides for the case where the accounting periods of the surrendering company and the claimant company are not coterminous.

Regulation 7 provides that EUFT utilised by the claimant company shall not be taken into account as underlying tax under section 795(2) of the Income and Corporation Taxes Act 1988 (“the Taxes Act”) in determining the amount of income of the claimant company taxable under Case V of Schedule D.

Regulation 8 provides for the form of claim for EUFT and mirrors certain provisions in Part VIII of Schedule 18 to the Finance Act 1998 (claims for group relief).

Regulation 9 provides for time limits for the making or withdrawal of claims for EUFT.

Regulation 10 makes miscellaneous provision for EUFT relief by mirroring certain group relief provisions in Chapter IV of Part X of the Taxes Act.