[F1371BAIntroduction to the CFC chargeU.K.
(1)The CFC charge is charged in relation to accounting periods of CFCs in accordance with section 371BC.
(2)Section 371BC applies in relation to a CFC's accounting period if (and only if)—
(a)the CFC has chargeable profits for the accounting period, and
(b)none of the exemptions set out in Chapters 10 to 14 applies for the accounting period.
(3)A CFC's chargeable profits for an accounting period are its assumed taxable total profits for the accounting period determined on the basis—
(a)that the CFC's assumed total profits for the accounting period are limited to only so much of those profits as pass through the CFC charge gateway, and
(b)that amounts are to be relieved against the assumed total profits at step 2 in section 4(2) of CTA 2010 only so far as it is just and reasonable for them to be so relieved having regard to paragraph (a).
(4)“The CFC charge gateway” is explained in section 371BB.
(5)Subsection (3) is subject to section 371SB(7) and (8) (which relates to settlement income included in a CFC's chargeable profits).]
Textual Amendments
F1Pt. 9A inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 1 (with ss. 56-58)