What did section 329M of the Corporation Tax Act 2010 provide?

Section 329M defined the method for calculating the 'reference amount' for a pre-commencement period under the controlled foreign companies rules in Chapter 5A of the Corporation Tax Act 2010. The reference amount was a key figure used in determining whether and how the CFC charge applied during transitional periods.

Has section 329M of CTA 2010 been repealed?

Yes, section 329M was repealed by Finance Act 2015, Schedule 11, paragraph 13(1). The repeal has retrospective effect, applying to all accounting periods ending on or after 5 December 2013. The entire Chapter 5A (sections 329A to 329T) was repealed at the same time and has no continuing application.

Does section 329M apply to any current or future accounting periods?

No. Because the repeal took effect for accounting periods ending on or after 5 December 2013, section 329M has no practical application for any current or future periods. Companies must instead consider the CFC provisions as amended by Finance Act 2015 when determining any tax liability from controlled foreign company profits.

What replaced the Chapter 5A CFC provisions after their repeal?

The revised CFC legislation introduced by the Finance Act 2015 reforms replaced the Chapter 5A provisions. Any accounting periods that might have fallen within the scope of sections 329A to 329T are now governed by these updated rules. Section 329M is only of historical relevance for understanding the evolution of UK CFC rules.

Corporation Tax Act 2010 section 329M

The reference amount for a pre-commencement period

Section 329M defined how to calculate the "reference amount" for a pre-commencement period under the controlled foreign companies rules, but this section was repealed with effect for accounting periods ending on or after 5 December 2013.

Section 329M was part of Chapter 5A (sections 329A–329T) of the Corporation Tax Act 2010, which dealt with controlled foreign companies (CFCs).
The section set out the method for determining the "reference amount" applicable to a pre-commencement period — that is, a period before the CFC rules in this chapter came into force.
The entire chapter, including this section, was repealed by Finance Act 2015, Schedule 11, paragraph 13(1).
The repeal took effect in relation to accounting periods ending on or after 5 December 2013, meaning this provision has no continuing application for any current or future periods.

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