Taxes Consolidation Act 1997 section 835YA

Non-cooperative jurisdictions: modified application of sections 835T, 835U and 835V

Section 835YA disapplies certain CFC exemptions where the controlled foreign company is resident in a jurisdiction on the EU list of non-cooperative jurisdictions for tax purposes.

• Where a CFC is resident in a "listed territory", the effective tax rate exemption (section 835T), the low profit margin exemption (section 835U) and the low accounting profit exemption (section 835V) do not apply.
• A "listed territory" is a jurisdiction included in Annex I of the EU list of non-cooperative jurisdictions for tax purposes, as published in the Official Journal for the relevant period.
• The list is reviewed and updated annually; jurisdictions may be added or removed, with changes taking effect for CFC accounting periods beginning in the following calendar year.
• The section applies to accounting periods of CFCs beginning on or after 1 January 2021.