Regulation 2 Introduction

(1)

These Regulations apply in any case where—

(a)

an insurance company to which the I-E rules apply is deemed to make a disposal under section 212 of the Taxation of Chargeable Gains Act 1992 (annual deemed disposal of holdings of unit trusts etc)^f1 of an interest in an offshore fund,

(b)

the offshore fund is a CFC, and

(c)

there is (or, but for these Regulations, would be) a CFC charge on the company referable to its relevant interest in the CFC for the accounting period in which the disposal is deemed to have been made.

(2)

These Regulations modify the operation of—

(a)

the CFC rules (see regulations 3 to 5), and

(b)

section 212 of the Taxation of Chargeable Gains Act 1992 (see regulation 6).

(3)

In these Regulations—

“principal CFC” means the CFC referred to in paragraph (1);
“associated CFC” means an offshore fund which is a CFC in which the insurance company has an indirect interest by virtue of having an interest in the principal CFC.

Annotations

Footnotes

f1: Section 212 was amended by section 91(2)(b) of and Part 3(8) of Schedule 23 to the Finance Act 1993 (c. 34), section 134 of the Finance Act 1995 (c. 4), Part 3(12) of Schedule 43 to the Finance Act 2003 (c. 14), paragraph 11 of Schedule 26 to the Finance Act 2004 (c. 12), section 137 of the Finance Act 2006 (c. 25), section 39 of and paragraph 18 of Schedule 8, paragraphs 5(1) and (3) and 17(2) of Schedule 10 and Part 2(8) and (10) of Schedule 27 to the Finance Act 2007 (c. 11), paragraphs 225 and 249 of Schedule 1 to the Corporation Tax Act 2010 (c. 4), paragraph 165 of Schedule 8 to the Taxation (International and Other Provisions) Act 2010 (c. 8), paragraph 85 of Schedule 16 to the Finance Act 2012 and S.I. 2009/3001.