F1PART 6AHybrid and other mismatches

Annotations:
Amendments (Textual)
F1

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

F2CHAPTER 12AAllocation of dual inclusion income within group

Annotations:
Amendments (Textual)
F2

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—

    1. a

      is not dual inclusion income, and

    2. b

      is equal to or exceeds the amount of the DII surplus to which the allocation claim relates.

  • 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—

    1. a

      is equal to the amount of the DII surplus to which the claim relates, and

    2. b

      does not exceed the unused part of the DII shortfall of company B for the shortfall period (see section 259ZMD).

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.