Section 167 Gifts to foreign-controlled companies.

United Kingdom

(1)

F1Subject to section 167A, section 165(4) shall not apply where the transferee is a company which is within subsection (2) below.

(2)

A company is within this subsection if it is controlled by a person who, or by persons each of whom—

(a)

is F2not resident in the United Kingdom, and

(b)

F3is or is connected with the person making the disposal.

(3)

For the purposes of subsection (2) above, a person who (either alone or with others) controls a company by virtue of holding assets relating to that or any other company and who is resident F4in the United Kingdom is to be regarded as not resident there if—

(a)

he is regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom, and

(b)

by virtue of the arrangements he would not be liable in the United Kingdom to tax on a gain arising on a disposal of the assets.

Annotations

Textual amendments

F1: Words in s. 167(1) substituted (with effect in accordance with Sch. 7 para. 60 of the amending Act) by Finance Act 2015 (c. 11), Sch. 7 para. 25
F2: Words in s. 167(2)(a) substituted (with effect in accordance with Sch. 46 para. 112 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 100(2)
F3: Words in s. 167(2)(b) inserted (with effect in accordance with s. 41(2) of the amending Act) by Finance Act 2021 (c. 26), s. 41(1)
F4: Words in s. 167(3) substituted (with effect in accordance with Sch. 46 para. 112 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 100(3)

Notes on Part V

Textual amendments

F1: Words in Pt. 5 heading inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 14 para. 1(1)
F2: Words in Act substituted (with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 3 paras. 7(2)(a), 8 (with Sch. 3 para. 7(3))