background image
13.3.2. Non-trading Finance Profits

A CFCs non-trading finance profits pass the gateway to the extent that the profits are attributable to UK SPFs, arise directly from the investment of capital directly or indirectly by the UK connected company, profits which arise from a loan arrangement with a UK connected company where the arrangement is made as an alternative to the payments of dividends or other distribution and the main reason is due to a UK or foreign tax liability and if the profits arise from a finance lease with a UK connected company where the arrangement is made as an alternative to the purchase of an asset and the main reason for the arrangement is due to a UK or foreign tax liability.

However such profits are excluded to the extent that they are considered incidental.