167 Gifts to foreign-controlled companies.U.K.
(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)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 [F3in 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.
Textual Amendments
F1Words 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
F2Words 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)
F3Words 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)