F1PART 9AControlled foreign companies

Annotations:
Amendments (Textual)
F1

Pt. 9A inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 1 (with ss. 56-58)

Chapter 10The exempt period exemption

371JFAnti-avoidance

1

The exempt period exemption does not apply for a CFC's accounting period (“the relevant accounting period”) if condition A or B is met.

2

Condition A is that—

a

an arrangement is entered into at any time,

b

the main purpose, or one of the main purposes, of the arrangement is to secure a tax advantage for any person,

c

the arrangement is linked to the exempt period exemption applying or being expected to apply (apart from this section)—

i

for the relevant accounting period, or

ii

for that period and one or more other accounting periods of the CFC, and

d

the arrangement involves one or both of the following—

i

the CFC holding assets which give rise to non-trading finance profits or trading finance profits of the CFC, or

ii

the CFC holding intellectual property which gives rise to any income of the CFC.

3

Condition B is that—

a

an arrangement is entered into at any time,

b

in consequence of the arrangement, the length of any accounting period of the CFC is less than 12 months, and

c

the main purpose, or one of the main purposes, of the arrangement is to secure that the exempt period exemption applies—

i

for the relevant accounting period, or

ii

for that period and one or more other accounting periods of the CFC.

4

In this section references to the exempt period exemption include references to section 371JE.