Commentary

D4.438 Apportionment of a CFC charge among relevant persons

Corporate tax
Corporate tax | Commentary

D4.438 Apportionment of a CFC charge among relevant persons

Corporate tax | Commentary

D4.438 Apportionment of a CFC charge among relevant persons

In determining the CFC charge as set out in D4.435, if certain conditions are met then a formulaic approach is adopted when apportioning the CFCs chargeable profits and creditable tax among the relevant persons. This requires the multiplying together of indirect interests in the CFC through the chain of companies to arrive at the apportionment percentage. If there is more than one chain leading to the same CFC then the relevant interests through each chain are aggregated1.

The following conditions must be met in order for the CFC's chargeable profits and creditable tax to be apportioned among the relevant persons2:

  1.  

    •     the relevant persons all have their relevant interests by virtue only of their holding, directly or indirectly, ordinary shares in the CFC

  2.  

    •     each relevant person is either only UK resident or only non-UK resident at all times during the accounting period

  3.  

    •     a company with an intermediate interest in the CFC only has that interest

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial