Explanatory note

These Regulations amend the Controlled Foreign Companies (Excluded Countries) Regulations 1998 (S.I. 1998/3081).

Regulation 1 provides for the citation and commencement of these Regulations.

Regulation 2 amends regulation 4 of the 1998 Regulations imposing an additional requirement in respect of all controlled foreign companies that they should not have been involved in a scheme or arrangements, the purpose, or one of the main purposes, of which is to obtain a reduction in United Kingdom tax.

Regulation 3 makes transitional provision in respect of accounting periods which would, in the ordinary course of events, end after the date on which these Regulations come into force.

These Regulations do not impose new costs on business.