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

[F1 PART 9A U.K. Controlled foreign companies

Textual Amendments

F1 Pt. 9A inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 1 (with ss. 56-58)

Chapter 22 U.K. Supplementary provision

371VA Definitions U.K.

In this Part—

• “accounting period”, in relation to a CFC, is to be read in accordance with section 371VB,

• “accounting profits”, in relation to a CFC, is to be read in accordance with sections 371VC and 371VD,

• “arrangement” includes—

  (a)

  any agreement, scheme, transaction or understanding (whether or not legally enforceable), and

  (b)

  a series of arrangements or a part of an arrangement,

• “assumed taxable total profits”, in relation to a CFC, is to be read in accordance with section 371SB(1) to (6),

• “assumed total profits”, in relation to a CFC, is to be read in accordance with section 371SB(9), subject to section 371DA(2),

• “banking business” means the business of—

  (a)

  banking, deposit-taking, money-lending or debt-factoring, or

  (b)

  any activity similar to an activity falling within paragraph (a),

• “CFC” is to be read in accordance with section 371AA(3), subject to sections 371RC and 371RE(2) and regulations under section 371RF(4),

• “the CFC charge” is to be read in accordance with section 371AA(1),

• “chargeable company”, in relation to a CFC's accounting period, means a company which is a chargeable company for the purposes of step 4 in section 371BC(1),

• “chargeable profits”, in relation to a CFC, is to be read in accordance with section 371BA(3),

• “company” is to be read subject to section 371VE,

• “company tax return” means a return required to be made under Schedule 18 to FA 1998,

• “contract of insurance” has the meaning given by article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001,

• “control” is to be read in accordance with sections 371RB and 371RE, subject to section 371RF,

• “the corporation tax assumptions” is to be read in accordance with section 371SC,

• “creditable tax”, in relation to a CFC, is to be read in accordance with section 371PA,

• “the HMRC Commissioners” means the Commissioners for Her Majesty's Revenue and Customs,

• “insurance business” means the business of effecting or carrying out of contracts of insurance, including the investment of premiums received,

• “intellectual property” means—

  (a)

  any patent, trade mark, registered design, copyright or design right, or

  (b)

  any licence or other right in relation to anything falling within paragraph (a),

• “interest”, as in an interest in a company, is to be read in accordance with section 371VH,

• “the local tax amount”, in relation to a CFC, means the amount of tax determined at step 2 in section 371NB(1),

• “non-trading finance profits” is to be read in accordance with section 371VG,

• “non-trading income” means income which is not trading income,

• “property business profits” is to be read in accordance with section 371VI,

• [F2 “relevant finance lease” is to be read in accordance with section 371VIA,]

• “relevant interest” is to be read in accordance with Chapter 15,

• “tax advantage” has the meaning given by section 1139 of CTA 2010,

• “trading finance profits” is to be read in accordance with section 371VG,

• “trading income”, in relation to a CFC, means income brought into account in determining the CFC's trading profits for the accounting period in question,

• “trading profits”, in relation to a CFC, means any profits included in the CFC's assumed total profits for the accounting period in question on the basis that they would be chargeable to corporation tax under Part 3 of CTA 2009 (trading income),

• “UK connected capital contribution”, in relation to a CFC, means any capital contribution to the CFC made (directly or indirectly) by a UK resident company connected with the CFC (whether in relation to an issue of shares in the CFC or otherwise), and

• “UK permanent establishment”, in relation to a non-UK resident company, means a permanent establishment which the company has in the United Kingdom and through which it carries on a trade in the United Kingdom.]

Textual Amendments

F2 Words in s. 371VA substituted (retrospective to 1.1.2013) by Finance Act 2013 (c. 29), Sch. 47 paras. 6, 21