Taxation of Chargeable Gains Act 1992 section 213A

Power to modify ss. 212 and 213 etc. in case of CFCs that are offshore funds

Section 213A gives HM Treasury a regulation-making power to prevent double taxation where an insurance company holds an interest in an offshore fund that is also a controlled foreign company (CFC).

• Where an insurance company subject to the I–E rules is deemed to dispose of an interest in an offshore fund that is a CFC, and a CFC charge arises for the same period, the Treasury may make regulations to reduce the resulting double tax charge.
• The regulations may modify the annual deemed disposal and spreading rules (sections 212 and 213), the CFC rules, or the I–E rules for any accounting period of the insurance company.
• The regulations can make different provision for different cases and may include incidental, supplementary, consequential, transitional or saving provisions, including modifications to other Corporation Tax Acts.
• This power applies for accounting periods beginning on or after 1 January 2013, having been introduced by Finance Act 2012.