Controlled foreign companies (CFCs)
40 per cent test
Acceptable distribution policy
Accounting periods straddling 1 July 2009
Long term insurance business/large risk insurance
Transitional provisions
Accounting period
Accounting periods
Beginning on or after 1 January 2013
Generally
Pre-1 January 2012
Transitional provisions
Accounting profits
Adjustments to
Generally
Advance corporation tax
Surrender
Unrelieved surplus set-off
Advances made, meaning
Appeals affecting more than one person
Apportionment of chargeable profits and creditable tax
Anti-avoidance
Anti-avoidance provisions
Basic rules
Generally
In proportion to ordinary shareholdings
Indirect shareholdings
Interest in a company
Interests held by UK resident companies/related persons
Interpretation
Relevant interest, determination
Variable shareholdings
Arbitrage rules
Arrangement, meaning
Arrangements for paying tax on behalf of group members
Assessments
Associated persons
Associated, meaning
Assumed close company
Assumed election
Assumed residence
Background to new rules
Banking and similar business
Banking business profits
Banking business, meaning
Business establishment, meaning
Capital allowances
Generally
Capital interest, meaning
Captive insurance business
Captive insurance companies (CFC charge gateway), basic rule
Captive insurance companies, motive test
Cell companies
Change of accounting basis, mark to market
Charge (CFC charge)
Accounting period
Basic life insurance and general annuity business (BLAGAB)
Chargeable companies
Chargeable profits
Creditable tax
Determination, series of steps
Gateway
General rules
Generally
Holding shares as trading assets etc.
Imposition
Insurance companies carrying on BLAGAB
Method for making
Offshore fund managers
Offshore funds
Participators in offshore funds
Recovery of sum charges
Relief for relevant allowance
Shares held as trading assets
Charge gateway (CFC charge gateway)
Application of provisions
Captive insurance business
Exempt distribution income
Generally
Group treasury companies
Non-trading finance profits
Profits attributable to UK activities
Solo consolidation
Trading finance profits
Trading or property business profits
Chargeable profits
Apportionment
Assumed taxable total profits, meaning
Assumed total profits, meaning
Assumptions for calculation
Corporation tax assumptions
Dividends
Generally
Just and reasonable apportionments
Commencement of new regime
Common terms
Company reconstructions
Compatibility of national legislation with EU law
Generally
Reference to ECJ, special commissioners' power to make
Restriction of freedom of establishment
Connected persons
Connected, meaning
Control, meaning
Accounting periods, reference to
Accounting test
Economic test
Generally
Legal and economic control
Legal test
Parent undertaking
Subsidiary undertaking
Three mechanical tests
Two or more persons
Corporation tax assumptions
Assumed taxable total profits
Assumed total profits
Capital allowances
Claims and elections
Close company status
Close company, assumed not to be
Designated currency election
Designated currency, elections
Disguised interest
Disguised interest provisions
Double taxation relief
Generally
Group relief
Intangible fixed assets
Leases treated as long funding leases, elections
Long funding leases, election for leases to be treated as
Meaning
Shares accounted for as liabilities
Shares accounted for as liabilities provisions
Tax advantage, arrangements to obtain
Tax advantage, arrangements to secure
UK residence
Unremittable overseas income
Costs of purchasing property
Creditable tax
Apportionment
Generally
Just and reasonable apportionments
Meaning
Deemed lower level of taxation
Definitions
Designated currency election
Designer rate tax provisions
Discovery assessment
Generally
Meaning
Disguised interest
Disguised interest provisions
Distributions received from
Distributive business
Diversion of profits
Diversion of tax
Dividends
Double taxation relief
Election
Enquiry closure notice, meaning
Entity-level exemptions
Excluded territories exemption
Exempt period exemption
Generally
Low profit margin exemption
Low profits exemption
Tax exemption
Euroconversion
Exchange gains and losses
Excluded countries
Accounting periods beginning before 9 July 1998
Accounting periods beginning on or after 9 July 1998
Branch or agency income and gains
Income and gains requirements
Limitation on apportionment
List
Excluded territories exemption
Basic rule
Category A income
Category B income
Category D income
Conditions to be met
Determination of territory of residence
Four categories of income
Generally
Intellectual property condition
Residence in an excluded territory
Threshold amount, meaning
Exempt activities
Accounting period straddling 1 July 2009
Anti-avoidance, reference periods
Banking
Conditions
EEA territory
Exempt holding company, meaning
Generally
Holding companies
Hong Kong and Macao companies
Insurance business
Local holding companies
Qualifying holding companies
Residence territory
Trade investments, advances made and securities
Trustees' income
Ultimate corporate parent, meaning
Exempt period exemption
Adjustment of profits passing through CFC charge gateway
Anti-avoidance provisions
Anti-avoidance rule
Basic rule
Chargeable company condition
Commencement of exempt period
Company tax returns, amendment of
Example
Exempt period condition
Generally
Subsequent period condition
Transitional rules
Exemption from tax
Basic rule
Corresponding UK tax, determination
Designer rate tax provisons, meaning
Generally
Reduction to local tax amount
Exemptions from the rules, limited UK connection
Finance leases
Finance profits
Financial business
Foreign branch exemption regime
Foreign permanent establishments
Freedom of establishment
Gains on disposal of shares
Generally
Gross income, determining
Group mismatch schemes
Group relief
Group treasury companies
Accounting periods beginning before, and ending on or after 20 March 2013
Generally
Hire purchase
Holding companies
Identifying
Incorporated cell companies
Insurance business, meaning
Insurance companies
General insurance business of foreign company accounted for on non-annual basis
Generally
Intangible fixed assets
Intellectual property, exploitation of
Business establishment
Finance income
Generally
Intellectual property business
Interpretation
Other business activities
UK connection
Interests in companies
Interim improvements
Interpretation
Investment business
Leases treated as long funding leases
Leasing plant and machinery, restriction on use of losses
Limited UK connection
Business activities
Business establishment
Finance income
Generally
Gross income
Intellectual property income
UK connection
Loan relationships (qualifying), exemption for profits from
75 per cent exemption
Basic rule
Claims
Conditions to be met
Determination of profits
Exclusions
Full exemption
Funded out of qualifying resources
Generally
Limit on credit
Matched interest
Matched interest, exemption for
Meaning of qualifying loan relationship
Qualifying loan relationship, meaning
Qualifying resources, meaning
Qualifying value of relevant pre-acquisition funds
Local holding companies
Local reinsurance contracts
Long funding leases, election for leases to be treated as
Losses in pre-direction accounting period
Low profit margin exemption
Anti-avoidance rule
Basic rule
Generally
Low profits exemption
Accounting profits for the period
Anti-avoidance provisions
Anti-avoidance rules
Basic rule
Generally
Pre-tax profits
Lower level of taxation
Majority interest, meaning
Management of charge
Appeals affecting more than one person
Application of Taxes Acts
Generally
Just and reasonable apportionments
Recovery of sum charge from other UK resident companies
Relief against sum charged
Maximum reliefs assumed to be claimed
Meaning
Motive test
Non-trading finance profits
Capital investment from the UK
Conditions to be met for profits to pass through gateway
Dividends to UK resident companies, profits paid in lieu of
Five per cent rule
Generally
Incidental
Leases to UK resident companies, profits arising
Meaning
Profits from UK activities
Relevant finance lease
Non-trading finance profits (CFC charge gateway)
Basic rule
Capital investment from the UK
Dividends and distributions to UK resident companies, arrangements in lieu of
Finance leases to UK resident companies
UK activities
Non-trading income
Non-trading income, meaning
Offshore funds
Outstanding capital, meaning
Overview
Overview of new regime
Pre-1 January 2013
40 per cent test
Apportionment of chargeable profits
Charge to tax
Control, meaning
Designer rate regimes
Excluded companies
Excluded countries list
Exempt activities test
Exempt period test
Generally
Limited UK connection test
Motive test
Scope of legislation
Small chargeable profits test
Small relevant profits test
Territory of residence
Premises
Profits attributable to UK activities
Business premises condition
Economic value, exclusion
Exclusion of amounts
Export of goods condition
Generally
Income condition
Intellectual property condition
Management expenditure condition
OECD guidance
Step-by-step approach
Trading profits, exclusion
UK activities a minority of total activities, exclusion
Profits attributable to UK activities (CFC charge gateway)
Anti-avoidance (trading profits), exclusion
Business premises condition (trading profit), exclusion
Economic value, exclusion
Exclusions
Export of goods condition (trading profit), exclusion
Generally
Income condition (trading profit), exclusion
Independent companies' arrangements, exclusion
Intellectual property (trading profit), exclusion
Management expenditure condition (trading profit), exclusion
Steps to be taken
Trading profit
UK activities a minority of total activities, exclusion
Property business profits
Purchase of property, costs deductible
Qualifying resources
Exceptions
Reduction in UK tax
Regulations
Related companies
Related, meaning
Relevant finance leases
Relevant interest rules
Bare trustee, meaning
Generally
Indirect and direct interest, meaning
Interpretation
Relevant interest, meaning
Reliefs
Gains on disposal of shares
Group relief
Trading losses
Residence
Assumed
Basic rule
Corporation tax assumptions
Designations
Determination of territory
Determining
Elections
Generally
Territory
Two or more eligible territories
Self-assessment
Solo consolidation
Solo consolidation (CFC charge gateway), basic rule
Superior holding companies
Surrender of losses
Tax exemption
Calculation of corresponding UK tax
Designer rate tax provisions
Determination
Generally
Reductions to be made to local tax amount
Temporary exemption following certain acquisitions and reorganisations
Beginning of exempt period
Disqualifying relevant transactions
Ending of exempt period
Generally
Interpretation
Territories with a lower level of taxation
Tonnage tax
Tonnage tax companies
Trade investments, meaning
Trading finance profits
An arrangement which would be
Banking business profits
Basic rule
Captive insurance business, profits from
Free assets, meaning
Free capital, meaning
Generally
Loan relationships
Loans from foreign permanent establishments of UK companies
Solo consideration, profits under
Trading finance profits (CFC charge gateway)
Banking business, exclusion
Basic rule
Insurance business, exclusion
Loans from foreign permanent establishments of UK resident companies
Qualifying loan relationships
Trading income, meaning
Trading profits, meaning
Transfer of assets abroad, reduction in amount charged
Transfer pricing
Transitional provisions
Unincorporated cell companies
Unremittable overseas income
Wholesale business