Part 2Charge to corporation tax: basic provisions
C1F1CHAPTER 3AUK RESIDENT COMPANIES: PROFITS OF FOREIGN PERMANENT ESTABLISHMENTS
Pt. 2 Ch. 3A applied by 2011 c. 11, Sch. 19 para. 15Z2(3) (as inserted (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 2)
Anti-diversion rule
18GF2Anti-diversion rule
1
This section applies for the purposes of this Chapter for any relevant accounting period (“period X”) of a company (“company X”) in relation to a territory outside the United Kingdom (“territory X”) if—
a
there is an adjusted relevant profits amount in relation to territory X for period X,
b
the adjusted relevant profits amount includes diverted profits (see section 18H), and
c
none of the exemptions mentioned in section 18I applies for period X.
2
The diverted profits are to be left out of the adjusted relevant profits amount.
3
For the purposes of this Chapter “adjusted”, in relation to a relevant profits amount, is what the relevant profits amount would be if it were determined without reference to gains or losses which are chargeable gains or allowable losses for corporation tax purposes.
Pt. 2 Ch. 3A inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 13 paras. 4, 31