A company with low profits is exempt from a CFC charge. The low profits exemption provides an entity-level exemption for CFCs that pose little risk of diverting UK profits because their profits are relatively low.
Low profits are defined as1:
- Ìý
•ÌýÌýÌýÌý CFC accounting profits2 or assumed taxable total profits3 of no more than £50,000, or
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•ÌýÌýÌýÌý CFC accounting profits or assumed taxable total profits of no more than £500,000 of which no more than £50,000 represents non-trading income
The above amounts are reduced proportionately if the accounting period is less than 12 months4.
The CFC's assumed taxable total profits are computed in broadly the same way as the CFC's taxable profits
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Web page updated on 17 Mar 2025 17:34