Finance Act 1985

5 (1) In this Schedule and section 54 of this Act—

• " group" and " member of a group" shall be construed in accordance with section 272 (1) of the Taxes Act (definition of groups of companies) with the omission of the restriction in paragraph (a) of that subsection and the substitution of the words " 51 per cent. " for the words "75 per cent." wherever they occur,

• "qualifying distribution " has the same meaning as in Part V of the [1972 c. 41.] Finance Act 1972 (taxation of companies and company distributions),

• " unitary state" means a province, state or other part of a territory outside the United Kingdom with the government of which the arrangements referred to in subsection (1) of section 54 have been made which, in taxing the income or profits of companies from sources within that province, state or other part, takes into account, or is entitled to take into account, income, receipts, deductions, outgoings or assets of such companies, or of associated companies of such companies, arising, expended or situated as the case may be outside that territory and which has been prescribed under subsection (7) of that section as a unitary state for the purposes of that section ; but no such province, state or other part shall be so prescribed which only takes into account such income, receipts, deductions, outgoings or assets—

  (a)

  if the associated company was incorporated under the law of the territory, or

  (b)

  for the purpose of granting relief in taxing dividends received by companies.

(2) For the purposes of this Schedule and section 54 of this Act—

(a) section 533 of the Taxes Act (connected persons) applies; and

(b) section 302 of the Taxes Act (meaning of " associated company " and " control") applies with the substitution of the words " six years " for " one year " in subsection (1) of that section.