Finance Bill 2012 contains the draft legislation for the new Controlled Foreign Companies (CFCs) rules, and some amendments to the rules for the exemption of foreign permanent establishments that will apply to CFCs and permanent establishments with accounting periods that begin on or after 1 January 2013.
HM Revenue & Customs (HMRC) will publish draft guidance for the new rules on this page. Initially the guidance will be published as separate documents for each chapter of Schedule 20 of Finance Bill 2012. The draft guidance will be published in stages over the summer. Updated drafts of the chapter guidance documents will be published when there are enough comments and examples to incorporate into an updated guidance chapter. The guidance will then be incorporated into the International Manual in 2013.
Find the draft guidance from the links below:
CFC Banking Capitalisation Regulations
Draft regulations that provide a capitalisation safe harbour in respect of banking CFCs within banking groups have been published on the HM Treasury website. The link below will take you to the relevant webpage which has details of how to make comments on the draft regulations.
Amendment of worldwide debt cap rules in Part 7 TIOPA
Draft regulations amending certain of the worldwide debt cap rules in Part 7 TIOPA have been published on the HMT website. The changes that will be made by those regulations will ensure the new CFC rules interact as intended with the worldwide debt cap rules. The link below will take you to the relevant HMT webpage which also has details of how to make comments on the draft regulations.
HMRC intends to consult on draft guidance for CFCs and permanent establishments throughout the rest of 2012. However we would prefer substantive comments to be made by the end of October 2012 to provide time for comments to be properly considered before the draft guidance is incorporated into the International Manual in January 2013. Some draft guidance has been published in October 2012 and HMRC will be happy to take comments on these later published chapters up to the end of November 2012. Comments on the draft guidance should be sent to:
Third Floor, 3E/07
100 Parliament Street
Email your comments to Ali Hancock.