Leasing and the new CFC rules

The CFC regime applies to non-UK resident companies that are controlled by UK residents and is imputed into the rules dealing with exempt foreign branches of UK resident companies. According to HMRC’s draft guidance the new rules are intended to apply in relatively unusual circumstances. This is where both the transfer pricing rules and the provisions dealing with the taxation of permanent establishments are unable to tax that element of the CFC’s profits that derive from assets and risks that are actively managed in the UK. This article looks at the rules as they apply to non-bank leasing companies and property businesses and...