PART 4Income tax, corporation tax and capital gains tax

Corporation tax

36CFC charge: abolition of relief

1

In Part 9A of TIOPA 2010 (controlled foreign companies), omit section 371UD (relief against sum charged).

2

Accordingly, omit the following provisions—

a

in CTA 2010, section 398D(6) and (6A);

b

in FA 2012, in Schedule 20, paragraph 38;

c

in FA 2015, in Schedule 2, paragraphs 6 and 8;

d

in the Corporation Tax (Northern Ireland) Act 2015, in Schedule 2, paragraph 3.

3

The amendments made by this section have effect in relation to accounting periods of CFCs beginning on or after 8 July 2015.

4

Subsection (5) applies where a CFC has an accounting period beginning before 8 July 2015 and ending on or after that date (“the straddling period”).

5

For the purposes of determining the relief to which a chargeable company in relation to the straddling period is entitled under section 371UD of TIOPA 2010, or on the making of a claim would be so entitled—

a

so much of the straddling period as falls before 8 July 2015, and so much of that period as falls on or after that date, are treated as separate accounting periods, and

b

any amount charged on the company in accordance with section 371BC of TIOPA 2010 in relation to the straddling period is to be apportioned on a just and reasonable basis between those two periods.

6

In this section, “CFC”, “accounting period” in relation to a CFC, and “chargeable company” have the same meanings as in Part 9A of TIOPA 2010.