(1)In section 750(1) of the Taxes Act 1988 (meaning of lower level of taxation for purposes of provisions relating to controlled foreign companies) for “one-half” there shall be substituted “ three-quarters ”.
(2)Subsection (1) above shall apply in relation to accounting periods beginning on or after 16th March 1993.
(3)Where a company is by virtue of section 749(1) or (2) of the Taxes Act 1988 regarded as resident in a territory outside the United Kingdom and (apart from this section)—
(a)an accounting period of the company would begin before 16th March 1993 and end on or after that date, and
(b)the company would not be considered to be subject, by virtue of section 750(1) of that Act, to a lower level of taxation in that accounting period in the territory in which it is regarded as resident,
for the purposes of Chapter IV of Part XVII of that Act that accounting period shall be treated as ending on 15th March 1993.