Part 13Tax avoidance

C1C2Chapter 2Transfer of assets abroad

Annotations:
Modifications etc. (not altering text)
C1

Pt. 13 Ch. 2 applied by 1988 c. 1, s. 762ZA (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 94)

C2

Pt. 13 Ch. 2 applied (with effect in accordance with art. 1(2)(3) Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 21

Charge where power to enjoy income

725Reduction in amount charged where controlled foreign company involved

F11

This section applies if—

a

under Part 9A of TIOPA 2010 (controlled foreign companies), the CFC charge is charged in relation to a CFC's accounting period, and

b

apart from this section, the amount of income treated as arising to an individual under section 721 for a tax year would be or include a sum forming part of the CFC's chargeable profits for that accounting period.

2

The amount of income so treated is reduced by—

S×CACPmath

where—

S is the sum forming part of the F2CFC's chargeable profits for that accounting period,

CA is the F3CFC's chargeable profits for that accounting period so far as apportioned to chargeable companies at step 3 in section 371BC(1) of TIOPA 2010, and

CP is the F2CFC's chargeable profits for that accounting period.

F43

Terms used in this section which are defined in Part 9A of TIOPA 2010 have the same meaning as in that Part.