{
  "url": "https://openlegislation.uk/taxation-international-and-other-provisions-act-2010/section-371RC",
  "json_url": "https://openlegislation.uk/taxation-international-and-other-provisions-act-2010/section-371RC.json",
  "legislation": "ukpga/2010/8",
  "legislation_title": "Taxation (International and Other Provisions) Act 2010",
  "legislation_url": "https://openlegislation.uk/taxation-international-and-other-provisions-act-2010",
  "path": "section/371RC",
  "kind": "section",
  "number": "371RC",
  "heading": "Legal and economic control: the 40% rule",
  "text": "(1) This section applies to a non-UK resident company (“C”) if—\n(a) in accordance with section 371RB(7), two persons (“the controllers”) control C, and\n(b) one of the controllers is UK resident and the other is non-UK resident.\n(2) If conditions X and Y are met, C is to be taken to be a CFC (if C would not otherwise be).\n(3) Condition X is that the UK resident controller has interests, rights and powers representing at least 40% of the holdings, rights and powers in respect of which the controllers fall to be taken as controlling C.\n(4) Condition Y is that the non-UK resident controller has interests, rights and powers representing—\n(a) at least 40%, but\n(b) no more than 55%,\nof the holdings, rights and powers in respect of which the controllers fall to be taken as controlling C.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Pt. 9A inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 1 (with ss. 56-58)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2010/8/section/371RC",
    "retrieved_at": "2026-10-29T09:10:17.008829+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}