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

Application of the Taxes Acts to the CFC charge

Section 371UB establishes that the CFC charge on UK parent companies is treated as corporation tax for the purposes of applying the general tax legislation, including rules on returns, assessment, collection, appeals and penalties.

• The CFC charge is treated as corporation tax, so all general corporation tax legislation applies to it, subject to any necessary modifications.
• This includes rules on filing returns and supplying accounts, assessing and collecting tax, rights of appeal, and administration including penalties, interest on unpaid tax and insolvency priority.
• References to "corporation tax" in the Taxes Management Act 1970 are read as including the CFC charge, and references to a company's profits include the chargeable company's share of the CFC's chargeable profits.
• The normal statutory claims and elections procedures (under Schedule 18 to the Finance Act 1998 and Schedule 1A to TMA 1970) do not apply to an election made under section 371TB(8) regarding the residence of a CFC.