Corporation tax for ATX-UK - part 4: self-test

Test your understanding

(1). State whether the following statements are true or false.

A  There will not be a CFC charge if the CFC does not have any chargeable profits.

B  There may be a CFC charge if the CFC’s profits are £80,000.
 

(2). State whether the following statements are true or false.

A  The tax exemption from the CFC charge applies where the tax rate in the overseas country is at least 75% of the UK rate.

B  Chargeable profits consist of the income of the CFC which has been artificially diverted from the UK.
 

(3). JUV Ltd owns 18% of the ordinary share capital of RTB Co, a controlled foreign company.

Explain how any CFC charge levied on JUV Ltd will be calculated.

Answers