Textual Amendments
F1Sch. 25 heading substituted (with effect in accordance with Sch. 17 para. 37 of the amending Act) by Finance Act 1998 (c. 36), Sch. 17 para. 25; S.I. 1998/3173, art. 2
3(1)F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F3(4A)Subject to sub-paragraph (5) below, for the purposes of this Part of this Schedule, the net chargeable profits of a controlled foreign company for any accounting period are—
(a)its chargeable profits for that period, less
(b)the amount (if any) which, if [F4an apportionment under section 747(3) fell to be made] in respect of the period, would be the company’s unrestricted creditable tax for that period;
and for the purposes of this sub-paragraph “unrestricted creditable tax” in relation to a company’s accounting period means the amount which would be its creditable tax for that period if the reference in section 751(6)(a) to Part XVIII did not include section 797.]
(5)In any case where—
(a)a controlled foreign company pays a dividend for any period out of specified profits, and
(b)those profits represent dividends received by the company, directly or indirectly, from another controlled foreign company,
so much of those specified profits as is equal to the dividend referred to in paragraph (a) above shall be left out of account in determining, for the purposes of this Part of this Schedule,F5. . . [F6the chargeable profits] of the controlled foreign company referred to in that paragraph for any accounting period.
Textual Amendments
F2Sch. 25 para. 3(1)-(4) repealed (with effect in accordance with s. 182 of the repealing Act) by Finance Act 1996 (c. 8), Sch. 36 para. 4(4)(a), Sch. 41 Pt. 5(34), Note
F3Sch. 25 para. 3(4A) inserted (with application in accordance with s. 134(5) of the amending Act) by Finance Act 1994 (c. 9), s. 134(4)(a)
F4Words in Sch. 25 para. 3(4A)(b) substituted (with effect in accordance with Sch. 17 para. 37 of the amending Act) by Finance Act 1998 (c. 36), Sch. 17 para. 28; S.I. 1998/3173, art. 2
F5Words in Sch. 25 para. 3(5) repealed (with effect in accordance with s. 182 of the repealing Act) by Finance Act 1996 (c. 8), Sch. 36 para. 4(4)(b), Sch. 41 Pt. 5(34), Note
F6Words in Sch. 25 para. 3(5) inserted (with application in accordance with s. 134(5) of the amending Act) by Finance Act 1994 (c. 9), s. 134(4)(b)