INTM215480 - Controlled Foreign Companies: before CTSA

Reliefs: disclaimer of relief

ICTA88/SCH24/PARA4 (2)

The Inspector must assume that a foreign company claims reliefs. There are rules, however, under which the Inspector can vary these reliefs. This is in a case where the Board gives a notice of direction. The rules are as follows:

• The company gives notice to the Board in writing within sixty days of the date of issue of the notice of direction. The Board may allow further time - see INTM209130 and
• The company or companies that have a majority interest in the foreign company - see INTM209120 - must ask to vary the reliefs.

The notice to the Board should refer to the reliefs that ICTA88/SCH24/PARA4 (1) assumes the company has claimed. It should say in which of the following ways it is to vary the claim:

• The company is assumed to make no particular claim or election.
• The company is assumed to make a claim or election which is different from one assumed under ICTA88/SCH24/PARA4 (1) - provided that the claim or election is one which a company liable to corporation tax can make. And provided that the company complies with any time limit.
• The company is assumed to disclaim or postpone any allowance, or part of an allowance - provided that a company liable to corporation tax could so disclaim or postpone. And provided that the company complies with any time limit.