Regulation 5 Amendment of regulation 7

Amend regulation 7 (interpretation of regulations 5 and 6) as follows.

After paragraph (1) insert—

“(1A)

For the purposes of regulation 5(2B) a company (“C”) is capable of exercising control over another entity—

(a)

where C is entitled to a share of more than one half of the assets, or more than one half of the income of the entity; or

(b)

where, if the entity were a company and C were resident in the United Kingdom, C would be treated as having control of it for the purposes of Chapter 4 of Part 17 of the Taxes Act (tax avoidance: controlled foreign companies).”.