Finance (No. 2) Act 2015

36 CFC charge: abolition of relief U.K.

(1) In Part 9A of TIOPA 2010 (controlled foreign companies), omit section 371UD (relief against sum charged).

(2) Accordingly, omit the following provisions—

(a) in CTA 2010, section 398D(6) and (6A);

(b) in FA 2012, in Schedule 20, paragraph 38;

(c) in FA 2015, in Schedule 2, paragraphs 6 and 8;

(d) in the Corporation Tax (Northern Ireland) Act 2015, in Schedule 2, paragraph 3.

(3) The amendments made by this section have effect in relation to accounting periods of CFCs beginning on or after 8 July 2015.

(4) Subsection (5) applies where a CFC has an accounting period beginning before 8 July 2015 and ending on or after that date (“the straddling period”).

(5) For the purposes of determining the relief to which a chargeable company in relation to the straddling period is entitled under section 371UD of TIOPA 2010, or on the making of a claim would be so entitled—

(a) so much of the straddling period as falls before 8 July 2015, and so much of that period as falls on or after that date, are treated as separate accounting periods, and

(b) any amount charged on the company in accordance with section 371BC of TIOPA 2010 in relation to the straddling period is to be apportioned on a just and reasonable basis between those two periods.

(6) In this section, “CFC”, “accounting period” in relation to a CFC, and “chargeable company” have the same meanings as in Part 9A of TIOPA 2010.