# Taxation (International and Other Provisions) Act 2010, Section 371CD: Incidental non-trading finance profits: the further 5% rule


(1) This section applies in relation to a CFC's accounting period if—
(a) the requirements of section 371CC(1)(a) and (b) are both met, but
(b) the CFC's non-trading finance profits (as added to under section 371CC(5) if applicable) are more than 5% of the relevant amount for the purposes of section 371CC(2).
(2) Chapter 5 does not apply for the accounting period if the CFC's adjusted non-trading finance profits are no more than 5% of the total of the CFC's exempt distribution income (as defined in section 371CC(9)).
(3) The CFC's “adjusted non-trading finance profits” are its non-trading finance profits excluding any profits falling within section 371CB(3) or (4).
(4) Subsection (5) applies if any CFC subsidiary's relevant non-trading finance profits are added under section 371CC(5) to the CFC's non-trading finance profits for the purposes of section 371CC(2).
(5) The CFC subsidiary's relevant non-trading finance profits are also to be added to the CFC's adjusted non-trading finance profits for the purposes of subsection (2) above.

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Source: https://www.legislation.gov.uk/ukpga/2010/8/section/371CD (the official version)
Page: https://openlegislation.uk/taxation-international-and-other-provisions-act-2010/section-371CD
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.