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HMRC internal manual

International Manual

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HM Revenue & Customs
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Controlled Foreign Companies carrying on general insurance business: Later amendments

SI1999/1408 Regulation 4

Where a United Kingdom company has made a return on the basis set out in paragraph (a) of INTM256510and it is subsequently established that the overseas company is not subject to a lower level of taxation, then the United Kingdom company must amend the return on the basis that the company is not a controlled foreign company.

Where a United Kingdom company has made a return on the basis set out in paragraph (b) of INTM256510 and it is subsequently established that the overseas company is subject to a lower level of taxation, then the United Kingdom company must amend the return on the basis that the company is a controlled foreign company.

In both the above cases any amendment must be made within 18 months and 30 days of the close of the underwriting year. The close of the underwriting year will be the date on which the technical provision is replaced or 3 years following the end of the underwriting year, whichever is the sooner. A company failing to make an amended return within the time limit allowed, where the original return was made under the basis of (b) in INTM256510, may be liable to a tax related penalty under FA98/SCH18/PARA20. (The time limit set by FA98/SCH18/PARA34 is not displaced. Hence if an enquiry is in progress, the time limit for making an amendment arising from the enquiry is 30 days beginning with the day on which the enquiry is completed.)