Search Legislation

Finance Act 2012

Chapter 8 -The CFC charge gateway: solo consolidation

184.Chapter 8 contains the rules that identify the profits which are within the scope of the CFC charge for a CFC that is the subject of a solo consolidation waiver. Solo consolidation is an arrangement whereby the FSA allows a regulated financial company to treat an unregulated subsidiary for regulatory purposes as if it were a division of the regulated company. A company that wishes to solo consolidate must apply to the FSA for a waiver.

185.New section 371HA(1) outlines the basic rule for identifying the profits that fall within Chapter 8 and that are included in the CFC charge gateway. The profits are any amounts in the CFC’s assumed total profits (as defined by section 371SB(9)) which are not also included in the “CFC’s relevant profits amount”. The effect of the rule is to bring into charge amounts that are included in the CFC’s assumed total profits, but are not included in its relevant profits amount.

186.New section 371HA(2) defines the CFC’s relevant profits amount by reference to section 18A(6) of CTA 2009. In doing so it deems the CFC to be a permanent establishment of the UK resident company mentioned in section 371CG(2)(b) or the UK resident bank mentioned in section 371CG(3) and deems the CFC’s accounting period to be a relevant accounting period for that UK resident company or bank.

Back to top


Print Options


Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.


More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources