SCHEDULES

SCHEDULE 25F4Cases where section 747(3) does not apply

Annotations:
Amendments (Textual)
F4

Sch. 25 heading substituted (with effect in accordance with Sch. 17 para. 37 of the amending Act) by Finance Act 1998 (c. 36), Sch. 17 para. 25; S.I. 1998/3173, art. 2

C1PART II EXEMPT ACTIVITIES

Annotations:
Modifications etc. (not altering text)

5

1

The provisions of this Part of this Schedule have effect for the purposes of paragraph (b) of subsection (1) of section 748.

F11A

Except as provided in paragraph 8 below, the provisions of this Part of this Schedule apply in relation to a company which is resident in an EEA territory in the same way as they apply in relation to a company which is resident elsewhere.

2

In the case of a controlled foreign company—

a

which is, by virtue of section F2749(5), presumed to be resident in a territory in which it is subject to a lower level of taxation, and

b

the business affairs of which are, throughout the accounting period in question, effectively managed in a territory outside the United Kingdom other than one in which companies are liable to tax by reason of domicile, residence or place of management,

references in the following provisions of this Part of this Schedule to the territory in which that company is resident shall be construed as references to the territory falling within paragraph (b) above, or, if there is more than one, to that one of them which may be notified to the Board by the United Kingdom resident company or companies referred to in paragraph 4(2) of Schedule 24.

F33

In the case of a controlled foreign company—

a

which is, by virtue of section 749(5), presumed to be resident in a territory in which it is subject to a lower level of taxation,

b

the business affairs of which are, throughout the accounting period in question, effectively managed in a special administrative region, and

c

which is liable to tax for that period in that region,

references in the following provisions of this Part of this Schedule to the territory in which that company is resident shall be construed as references to that region.

4

In sub-paragraph (3) above “special administrative region” means the Hong Kong or the Macao Special Administrative Region of the People’s Republic of China.

5

Where sub-paragraph (3) above applies, it applies in place of sub-paragraph (2).