In the Communications, Media and Technology Updater on 10 April, we commented on the proposals for the new Controlled Foreign Company (CFC) rules and their impact on IP rights following the release of a discussion document on 26 January 2010.
In the June 2010 Budget, the Government announced that full reform of CFC rules will be completed in spring 2012. In the meantime, a further consultation will take place during the remainder of 2010 to discuss interim improvements to the current CFC rules which will be introduced in spring 2011. It is unclear to what extent this will incorporate the IP proposals referred to in the 26 January 2010 discussion document. However, the Government has stated that it intends to make the current rules more competitive, to enhance long term stability and provide adequate protection of the UK tax base. We will provide updates once we receive further detail.
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