Section 371JE | Adjustment of profits passing through the CFC charge gateway

(1)This section applies for a CFC's accounting period if—

(a)the accounting period begins, but does not end, during an exempt period of the CFC, and

(b)the subsequent period condition and the chargeable company condition in section 371JB are both met.

(2)The CFC's assumed total profits which would otherwise pass through the CFC charge gateway are to be adjusted to ensure that no profits which arise in the exempt period, as determined on a just and reasonable basis, pass through the CFC charge gateway.

(3)This section is subject to section 371JF (anti-avoidance).