Taxation (International and Other Provisions) Act 2010 (c. 8)

[F1 PART 6A U.K. Hybrid and other mismatches

Textual Amendments

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

[F2 CHAPTER 12A U.K. Allocation of dual inclusion income within group

Textual Amendments

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 U.K.

259ZMB Claims for allocation of DII surplus U.K.

(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.

• 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).

(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.]]