INTM215110 - Controlled Foreign Companies: before CTSA

Notice of direction: matters to be included

ICTA88/S753 (1) and (2)

The Board may make a direction for an accounting period of a controlled foreign company. When it does it must give notice of the making of the direction. It must give this notice to every company resident in the United Kingdom that the Board considers has an interest in the controlled foreign company at any time during the accounting period. This may mean that it issues notices to more than one member of a United Kingdom group - see INTM210040.

The notice of direction must include certain matters. The notice must:

• give the date of the direction and the name of the controlled foreign company
• give the accounting period to which the direction relates and the amounts of chargeable profits and creditable tax for that period
• give the reliefs it is assumed the company claims under ICTA88/SCH24/PARA4 (1) - see INTM209090
• say in which territory the company is resident. This includes the case where the Board determines the territory of residence under ICTA88/S749 (2)(d) - see INTM215120
• inform the recipient of the notice of the right of appeal - see INTM215150 and the right to disclaim allowances for the purposes of ICTA88/SCH24 - see INTM209100
• give any declaration made under ICTA88/SCH24/PARA11 (3) (capital allowances - see INTM215260 and following pages - or under ICTA88/SCH25/PARA3 (2) (acceptable distribution policy - see INTM217020).

See INTM215210 for guidance on procedures following the making of a direction.