F1PART 9AControlled foreign companies

Annotations:
Amendments (Textual)
F1

Pt. 9A inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 1 (with ss. 56-58)

Chapter 3The CFC charge gateway: determining which (if any) of Chapters 4 to 8 applies

371CGDoes Chapter 8 apply?

1

Chapter 8 (solo consolidation) applies for a CFC's accounting period if (and only if) condition A or B is met.

2

Condition A is that, at any time during the accounting period—

a

the CFC is a subsidiary undertaking which is the subject of a solo consolidation waiver under section BIPRU 2.1 of the F2PRA Handbook , and

b

the CFC's parent undertaking in relation to that waiver is a UK resident company.

3

Condition B is that, at any time during the accounting period—

a

the CFC is controlled (either alone or with other persons) by a UK resident bank which holds shares in the CFC,

b

the UK resident bank must meet requirements of the F3PRA Handbook in relation to its capital,

c

any fall in the value of the shares held in the CFC would be (wholly or mainly) ignored for the purpose of determining if the UK resident bank meets those requirements of the F3PRA Handbook , and

d

the main purpose, or one of the main purposes, of the UK resident bank in holding the shares in the CFC is to obtain a tax advantage for itself or any company connected with it.

4

In this section—

  • F4“the PRA Handbook” means the Handbook made by the Prudential Regulation Authority under FISMA 2000 (as that Handbook has effect from time to time), and

  • “UK resident bank” means a UK resident person carrying on banking business.

5

The Treasury may by regulations amend this Chapter or Chapter 8 as they consider appropriate to take account of—

a

any changes to the F5PRA Handbook , or

b

any relevant document published by the F6Financial Conduct Authority or the Prudential Regulation Authority from time to time.

6

“Relevant document” means—

a

a document which replaces the F7PRA Handbook , or

b

a document which changes or replaces a document falling within paragraph (a) or a document which is a relevant document by virtue of this paragraph.