F1PART 9AControlled foreign companies
Chapter 19Assumed taxable total profits, assumed total profits and the corporation tax assumptions
“The corporation tax assumptions”
371SDUK residence etc
1
Assume—
a
that the CFC is UK resident at all times during the relevant accounting period,
b
if the relevant accounting period is not the CFC's first accounting period, that the CFC has been UK resident from the beginning of the CFC's first accounting period, and
c
except where the CFC ceases to be a CFC at the end of the relevant accounting period, that the CFC will continue to be UK resident until it ceases to be a CFC,
and that the CFC is, has been and will continue to be within the charge to corporation tax, and that its accounting periods (as determined in accordance with section 371VB) are accounting periods for corporation tax purposes, accordingly.
2
Subsection (1)—
a
does not require it to be assumed that there is any change in the place or places at which the CFC carries on its activities, and
b
requires (in particular) that it be assumed that the CFC does not get the benefit of section 1279 of CTA 2009 (exemption for profits from securities free of tax to residents abroad).
3
If the CFC is (actually) UK resident immediately before the beginning of its first accounting period, assume that its UK residence from the beginning of that accounting period (as assumed in accordance with subsection (1)) is not continuous with its (actual) UK residence before the beginning of that accounting period.
4
Except where the relevant accounting period is the CFC's first accounting period, assume that a determination of the CFC's assumed taxable total profits has been made for all previous accounting periods back to (and including) the CFC's first accounting period.
5
Subsection (4) applies (in particular) for the purpose of applying any relief which is relevant to two or more accounting periods.
6
In this section references to the CFC's first accounting period are to the CFC's accounting period which begins when it becomes a CFC.
Pt. 9A inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 1 (with ss. 56-58)