Controlled Foreign Companies: The CFC Charge Gateway Chapter 3 - Determining which (if any) of Chapters 4 to 8 apply: Does Chapter 4 apply?: Conditions A to D: Condition D
Condition D (TIOPA10/S371CA(11))
Condition D is met if the CFC’s assumed total profits only consist of one or both of:
- non-trading finance profits;
- property business profits.
Any such profits are excluded from the CFC’s assumed total profits for the purposes of Chapter 4. Non-trading finance profits are dealt with in Chapter 5 and property business income is outside the scope of the CFC charge. Chapter 4 will not apply where a CFC has no profits of any other kind but these.