F1PART 6AHybrid and other mismatches
F2CHAPTER 12AAllocation of dual inclusion income within group
Pt. 6A Ch. 12A inserted (with effect in accordance with Sch. 7 para. 40 of the amending Act) by Finance Act 2021 (c. 26), Sch. 7 para. 15(3)
Allocation of DII surplus
259ZMBClaims for allocation of DII surplus
1
Company B may make a claim (an “allocation claim”) for all or part of the unused part of the DII surplus of company A for the overlapping period (see section 259ZMC) to be allocated to company B for the shortfall period, if the following requirements are met.
Requirement 1 Company A consents to the allocation claim.
Requirement 2 The allocation claim identifies the amount of the DII surplus to which it relates.
Requirement 3 Company B has an amount of ordinary income for the shortfall period (“matchable income”) that—
- a
is not dual inclusion income, and
- b
is equal to or exceeds the amount of the DII surplus to which the allocation claim relates.
- a
Requirement 4 The allocation claim identifies the amount of matchable income to which the claim relates.
Requirement 5 The amount of matchable income to which the claim relates—
- a
is equal to the amount of the DII surplus to which the claim relates, and
- b
does not exceed the unused part of the DII shortfall of company B for the shortfall period (see section 259ZMD).
- a
2
If company B makes an allocation claim—
a
the amount of company A's dual inclusion income for the surplus period is reduced by the amount of matchable income to which the claim relates, and
b
the amount of matchable income to which the claim relates is treated in relation to company B as if the following assumptions were made.
3
The assumptions are that—
a
things done by or to company A in relation to that amount are treated as done by or to company B, and
b
all other factual circumstances (or circumstances treated as existing as a result of any provision made by this Part) in relation to that amount are unchanged.
Pt. 6A inserted (with effect in accordance with Sch. 10 paras. 18-21 of the amending Act) by Finance Act 2016 (c. 24), Sch. 10 para. 1