43Implementation of the amended Parent/Subsidiary DirectiveU.K.
(1)Section 801 of ICTA (dividends paid between related companies: relief for UK and third country taxes) is amended as follows.
(2)After subsection (5) (meaning of one company being related to another) insert—
“(5A)For the purposes of subsections (2) and (3) above (including any determination of the extent to which underlying tax paid by the third, fourth or subsequent company in question would be taken into account under this Part if the conditions specified for the purpose in subsection (2) above were satisfied) a company is also related to another company if that other company—
(a)controls directly or indirectly, or
(b)is a subsidiary of a company which controls directly or indirectly,
not less than 10% of the ordinary share capital of the first-mentioned company.”.
(3)The amendment made by this section has effect where the dividend mentioned in section 799(1) of ICTA is paid on or after 1st January 2005.