http://www.legislation.gov.uk/ukpga/2010/8/section/371CCTaxation (International and Other Provisions) Act 2010An Act to restate, with minor changes, certain enactments relating to tax; to make provision for purposes connected with the restatement of enactments by other tax law rewrite Acts; and for connected purposes.texttext/xmlenStatute Law Database2026-05-05Expert Participation2026-03-18 PART 9AChapter 3371CC1This section applies in relation to a CFC's accounting period if one or both of the following requirements is met—athe CFC has trading profits or property business profits (or both);bthe CFC has exempt distribution income and, at all times during the accounting period, a substantial part of its business is the holding of shares or securities in companies which are its 51% subsidiaries.2Chapter 5 does not apply for the accounting period if the CFC's non-trading finance profits are no more than 5% of the relevant amount.3“The relevant amount” is—aif the requirement of subsection (1)(a) is met, the total of the CFC's trading profits and property business profits determined before deduction of interest or any tax or duty imposed under the law of any territory,bif the requirement of subsection (1)(b) is met, the total of the CFC's exempt distribution income, orcif both those requirements are met, the sum of the totals given by paragraphs (a) and (b).4Subsection (5) applies for the purposes of subsection (2) if—athe requirement of subsection (1)(b) is met (whether or not the requirement of subsection (1)(a) is also met),bat any time during the accounting period, a 51% subsidiary of the CFC (“the CFC subsidiary”) is also a CFC, andcthe CFC subsidiary has relevant non-trading finance profits as determined in accordance with subsection (6) or (7).5The CFC subsidiary's relevant non-trading finance profits are to be added to the CFC's non-trading finance profits.6If—athe CFC subsidiary has an accounting period (“the relevant period”) which is the same as the CFC's accounting period or otherwise falls wholly within the CFC's accounting period, andbby virtue of this section or section 371CD, Chapter 5 does not apply (in the case of the CFC subsidiary) for the relevant period,the CFC subsidiary's “relevant non-trading finance profits” are its non-trading finance profits for the relevant period.7If—athe CFC subsidiary has an accounting period (“the relevant period”) which otherwise overlaps with the CFC's accounting period, andbby virtue of this section or section 371CD, Chapter 5 does not apply (in the case of the CFC subsidiary) for the relevant period,the CFC subsidiary's “relevant non-trading finance profits” are a just and reasonable proportion of its non-trading finance profits for the relevant period.8In this section references to the CFC's trading profits are to those profits excluding any of them which pass through the CFC charge gateway for the accounting period.9“Exempt distribution income” means any dividends or other distributions which are not brought into account in determining the CFC's assumed total profits on the basis that they would be exempt for the purposes of Part 9A of CTA 2009 (company distributions).10This section needs to be read with section 371CD.Pt. 9A inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 1 (with ss. 56-58)