Taxation (International and Other Provisions) Act 2010 section 371FE

Exclusion: insurance business

Section 371FE gives HMRC the power to make regulations that can exclude a controlled foreign company's insurance-related trading finance profits from the CFC charge gateway, provided certain conditions are met.

• HMRC may issue regulations specifying conditions under which a CFC's trading finance profits from insurance business are excluded from the Chapter 6 gateway (the trading finance profits test)
• This exclusion does not cover insurance business that relates to UK insurance contracts — that is, contracts already caught by the separate captive insurance rules in Chapter 7
• The regulations may set conditions based on where the CFC is resident, where its insurance business is regulated, or where it carries on that business
• The regulations may also refer to the regulatory requirements that apply to insurance business in any given territory from time to time