Complete this section if at any time in this period the company held a relevant interest of 25% or more in a foreign company which is controlled from the UK. This screen is accessed via the data input tab within the tax return.
Note: There are some exceptions to this reporting requirement and the exceptions are different for Controlled Foreign Companies (CFCs) with an accounting period beginning on or after 1 January 2013.
Adding a new CFC
To add a new CFC, clickbutton, a new window will open which needs to be completed.
Editing a CFC
To edit a CFC, click on its name to open the CFC window, make the changes requires and select thebutton.
Deleting a CFC
To delete a CFC, click on its name to open the CFC popup window, then click thebutton.
- ‘Name of company’ Enter the name of the company
- ‘Territory of residence for section 749 purposes‘ Where a CFC has an accounting period beginning before 1 January 2013 and a residence election is made this should be noted. If a company is conclusively presumed to be resident in a territory in which it is subject to a lower level of tax, then this should be indicated by the entry S749(5) ICTA 1988.For an accounting period of a CFC beginning on or after 1 January 2013 the territory of residence of the CFC as determined under Chapter 20 Part 9A TIOPA 2010 should be entered.
- ‘Exempt?‘ Tick the box if the CFC satisfies any of the exemptions. Ticking this box will show the Exemption due field and hide the remaining fields in the window.
- ‘Exemption due‘ This field is only shown when the Exempt box is ticked. Select the exemption which applies from the drop down list, (only one exemption needs to be chosen).
- ‘% of apportionable profits and creditable tax‘ This will usually be the percentage of ordinary share capital held directly or indirectly by the UK company (but not by associated or connected persons). In all other circumstances the appropriate percentage should be calculated on a just and reasonable basis.
- ‘Chargeable profits’ Where a CFC has an accounting period beginning before 1 January 2013 these are the chargeable profits of the CFC (after reliefs available under Schedule 24 ICTA 1988) apportioned to the UK company.For a CFC whose accounting period begins on or after 1 January 2013, these are the profits that pass through the CFC charge gateway in Chapters 3 to 8 calculated in accordance with S371BA TIOPA 2010. Profits subject to charge under Chapter 5 may be wholly or partially exempted by Chapter 9 on the making of a claim on the tax return.
- ‘Tax on chargeable profits‘ Where a CFC has an accounting period beginning before 1 January 2013, this is the amount of tax charged on the company’s share of chargeable profits before reliefs are given under Schedule 26 ICTA 1988.For a CFC whose accounting period begins on or after 1 January 2013, this is the amount of tax (the CFC charge) due in respect of the chargeable company’s share of the CFC’s chargeable profits before relief is given under S371UD TIOPA 2010.
- ‘Creditable tax’ This broadly represents tax already paid on the chargeable profits and is deductible.
- ‘Reliefs in terms of tax’ Where a CFC has an accounting period beginning before 1 January 2013, any reliefs available under Schedule 26 should be shown at the appropriate rate of Corporation Tax.For a CFC whose accounting period begins on or after 1 January 2013 any reliefs available under S371UD TIOPA 2010 should be shown at the appropriate rate of Corporation Tax.
- ‘ACT as restricted‘ Unrelieved surplus Advance Corporation Tax (ACT) to the extent not restricted, should be shown here.
- ‘s.747 tax chargeable‘ This field will show the s747 tax chargeable or the CFC charge due.