[F1752C Interpretation of apportionment provisions.U.K.
(1)In this section “the relevant provisions” means sections 752 to 752B and this section.
(2)For the purposes of the relevant provisions—
(a)a person has a direct interest in a company if (and only if) he has an interest in the company otherwise than by virtue of having an interest in another company;
(b)a person has an indirect interest in a company if (and only if) he has an interest in the company by virtue of having an interest in another company;
(c)a person indirectly holds shares of a controlled foreign company if (and only if) he directly holds ordinary shares of a company which is share-linked to the controlled foreign company.
(3)For the purposes of the relevant provisions, a company is “share-linked" to a controlled foreign company if it has an interest in the controlled foreign company only by virtue of directly holding ordinary shares—
(a)of the controlled foreign company, or
(b)of the controlled foreign company or of one or more companies which are share-linked to the controlled foreign company by virtue of paragraph (a) above, or
(c)of the controlled foreign company or of one or more companies which are share-linked to the controlled foreign company by virtue of paragraph (a) or (b) above,
and so on.
(4)For the purposes of the relevant provisions, a company (“company A") has an intermediate interest in a controlled foreign company if (and only if)—
(a)it has a direct or indirect interest in the controlled foreign company; and
(b)one or more other persons have relevant interests in the controlled foreign company by virtue of having a direct or indirect interest in company A.
(5)Any interest or shares held by a nominee or bare trustee shall be treated for the purposes of the relevant provisions as held by the person or persons for whom the nominee or bare trustee holds the interest or shares.
(6)Where—
(a)an interest in a controlled foreign company is held in a fiduciary or representative capacity, and
(b)subsection (5) above does not apply, but
(c)there are one or more identifiable beneficiaries,
the interest shall be treated for the purposes of the relevant provisions as held by that beneficiary or, as the case may be, as apportioned on a just and reasonable basis among those beneficiaries.
(7)In the relevant provisions—
“bare trustee” means a person acting as trustee—
(a)for a person absolutely entitled as against the trustee; or
(b)for any person who would be so entitled but for being a minor or otherwise under a disability; or
(c)for two or more persons who are or would, but for all or any of them being a minor or otherwise under a disability, be jointly so entitled;
“ordinary shares", in the case of any company, means shares of a single class, however described, which is the only class of shares issued by the company;
“the relevant accounting period” means the accounting period mentioned in section 752(1);
“” includes a reference to a fraction of a share.]
Textual Amendments
F1Ss. 752-752C substituted for s. 752 (with effect in accordance with Sch. 17 para. 37 of the amending Act) by Finance Act 1998 (c. 36), Sch. 17 para. 7; S.I. 1998/3173, art. 2