F1PART 9AControlled foreign companies
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.
Pt. 9A inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 1 (with ss. 56-58)