Finance Act 2012

ITA 2007

22 (1) Section 725 of ITA 2007 (transfer of assets abroad: reduction in amount charged where controlled foreign company involved) is amended as follows.

(2) For subsection (1) substitute—

“(1) This section applies if—

(a) under Part 9A of TIOPA 2010 (controlled foreign companies), the CFC charge is charged in relation to a CFC’s accounting period, and

(b) apart from this section, the amount of income treated as arising to an individual under section 721 for a tax year would be or include a sum forming part of the CFC’s chargeable profits for that accounting period.”

(3) In subsection (2)—

(a) for “controlled foreign company’s” (in both places) substitute “CFC’s”, and

(b) in the definition of “CA” for “chargeable amount” substitute “CFC’s chargeable profits for that accounting period so far as apportioned to chargeable companies at step 3 in section 371BC(1) of TIOPA 2010”.

(4) For subsection (3) substitute—

“(3) Terms used in this section which are defined in Part 9A of TIOPA 2010 have the same meaning as in that Part.”