725Reduction in amount charged where controlled foreign company involvedU.K.
[F1(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.]
(2)The amount of income so treated is reduced by—
where—
S is the sum forming part of the [F2CFC's] chargeable profits for that accounting period,
CA is the [F3CFC's chargeable profits for that accounting period so far as apportioned to chargeable companies at step 3 in section 371BC(1) of TIOPA 2010], and
CP is the [F2CFC's] chargeable profits for that accounting period.
[F4(3)Terms used in this section which are defined in Part 9A of TIOPA 2010 have the same meaning as in that Part.]
Textual Amendments
F1S. 725(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 22(2) (with Sch. 20 para. 50(9))
F2Words in s. 725(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 22(3)(a) (with Sch. 20 para. 50(9))
F3Words in s. 725(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 22(3)(b) (with Sch. 20 para. 50(9))
F4S. 725(3) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 22(4) (with Sch. 20 para. 50(9))