SCHEDULES
SCHEDULE 17 Controlled foreign companies
Paragraph 3 of Schedule 26
35
1
Paragraph 3 of Schedule 26 to the Taxes Act 1988 (gains on disposal of shares in controlled foreign companies) shall be amended as follows.
2
In sub-paragraph (1), for paragraph (a) (which refers to a direction having been given in respect of an accounting period of a controlled foreign company) there shall be substituted—
a
an accounting period of a controlled foreign company (“the apportionment period”) is one in respect of which an apportionment under section 747(3) falls to be made; and
3
Accordingly, in paragraphs (b) and (c) of sub-paragraph (1), for the words “the direction period", in each place where they occur, there shall be substituted “
the apportionment period
”
.
4
In paragraph (d) of sub-paragraph (1) (which refers to a sum being, under section 747(1)(a), assessed and recoverable from a company) for “assessed on and recoverable from" there shall be substituted “
chargeable on
”
.
5
In sub-paragraph (3), for “the direction period" there shall be substituted “
the apportionment period
”
.
6
In sub-paragraph (4), in the words following paragraph (c), for “assessed and recoverable" there shall be substituted “
chargeable under section 747(4)(a)
”
.
7
After subsection (6) there shall be inserted—
6A
Nothing in—
a
paragraph 10 of Schedule 18 to the Finance Act 1998 (claims or elections in company tax returns), or
b
Schedule 1A to the Management Act (claims or elections not included in returns),
shall apply, whether by virtue of section 754 or otherwise, to a claim under sub-paragraph (6) above.