Controlled Foreign Companies - Substance, Treaty Protection & Practical Challenges

Introduction

The UK controlled foreign companies (CFC) rules, set out in Part 9A of TIOPA 2010, remain a central feature of the UK’s international tax framework.

Originally designed to prevent the diversion of profits to low-tax jurisdictions, they continue to be highly relevant for groups with finance, holding, or intellectual property companies based offshore. While the statutory rules provide exemptions and carve-outs, in practice the application is complex, and the need for real economic substance has become more important than ever.

Advisers and multinational groups must grapple with questions such as:

• When can the finance company exemption safely be applied?
• How does one evidence ‘significant people functions’ and management substance?
• Can treaty relief mitigate a CFC charge, or will UK anti-abuse doctrines override?
• How do the CFC rules align with wider OECD and EU anti-avoidance initiatives, including BEPS and the EU’s ATAD?

This webinar offers a practical guide to the UK CFC regime, exploring both the technical framework and its day-to-day application. It will also provide insights into HMRC’s compliance approach, the role of treaties in mitigating charges, and structuring options for groups managing exposure to CFC taxation.

What You Will Learn

On completion of this webinar, you will be able to:

• Understand the scope and purpose of the UK CFC rules under Part 9A TIOPA 2010
• Identify the key gateways and exemptions, including the entity-level and income-level exemptions
• Analyse the finance company rules, including partial and full exemptions, and the role of substance in applying them
• Evaluate how ‘significant people functions’ and management decisions affect the allocation of profits to the UK
• Consider whether and how double tax treaties may offer protection from CFC charges in certain structures
• Recognise the alignment of UK CFC rules with OECD BEPS Actions and the EU ATAD provisions
• Examine practical case studies involving holding companies, intellectual property structures, and offshore finance entities
• Understand HMRC’s approach to compliance, documentation requests, and litigation risk
• Apply planning strategies to mitigate CFC exposure, including increasing local substance, restructuring financing chains, or revisiting holding company jurisdictions

This pre-recorded webinar will be available to view from Thursday 30th April 2026

Alternatively, you can gain access to this webinar and 1,900+ others via the MBL Webinar Subscription. Please email webinarsubscription@mblseminars.com for more details.