Section 371RG Companies in which a UK resident company has more than a 50% investmentF1F2
If a UK resident company (whether alone or together with any associated enterprises) directly or indirectly has more than a 50% investment in a non-UK resident company, the non-UK resident company is to be taken to be a CFC (if it would not otherwise be).
A person (“P”) is an “associated enterprise” in relation to a UK resident company if—
P directly or indirectly has a 25% investment in the company (or vice versa), or
another person directly or indirectly has a 25% investment in each of P and the company.
Section 259ND (meaning of “50% investment” and “25% investment”) applies for the purposes of determining for the purposes of this section—
whether a person has “more than a 50% investment” in another person, and
whether a person has a “25% investment” in another person,
and, accordingly, references in section 259ND to “X%” are to be read as references to more than 50% or to 25% (as appropriate) and references in that section to “X% or more” are to be read as references to more than 50% or to 25% or more (as appropriate).
Annotations
Textual amendments
- F1
Pt. 9A inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 1 (with ss. 56-58)
- F2
S. 371RG inserted (with effect in accordance with s. 20(5)(6) of the amending Act) by Finance Act 2019 (c. 1), s. 20(4)